CEU eTD Collection
In fulfilment partial of therequiremen S OCIAL OCIAL Department of T HE International Relations and European Studies C P ASES OF ASES OLICY Supervisor: Professor
M International Relations and European Studies Central European University EMBER Word count:Word Budapest, Hungary H P Submitted to Ákos Ákos Máté UNGARY AND AND UNGARY ATHWAYSIN 2015 By
ts for degree the of ofMaster Arts in
S
15 392 TATES László CsabaLászló
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CEU eTD Collection policyto influence formation after the crisis. internal while that conclusion the to comes charac and institutions and policies in changes the out maps thesis the framework theoretical as institutionalism historical Using Union. European the how is thesis the for question regime. social morea as seen is Hungary whilesystem, liberal a as Estonia categorizes states member new the within arrangements state welfare various the on literature The Hungary. c the via institutions and policy social in changes the assess to out new the within policy sets thesis the and Union social European the in shock severe a created ofcrisis 2008 The states. member pathways changing the analyse to is thesis the of goal The teristics of the new member states are still relevant the European Union European the relevant still are states member new the of teristics
different types of welfare systems react to the influence of the the of influence the to react systems welfare of types different Abstract i
ase studies of Estonia and and Estonia of studies ase
showed capacity capacity showed The centralThe CEU eTD Collection stimulating discussions. thank consultations. numerous the for Bellers Robin to grateful similarly am and guidance continuous his for Csaba László Professorsupervisor, my thank to like also would I revisiting. and writing reading, of nights endless seemingly the endured who resea and studies my on focus to me for possible it made who parents my towards indebted greatly am I
h Pltcl cnm Rsac Gop o te edak n h ery rfs a drafts early the on feedback the for Group Research Economy Political the rch
with their encouragement and unwavering support unwavering and encouragement their with
Acknowledgement ii
. I am also thankful to Noémi, to thankful also am I .
Finally, I would like to like would I Finally, valuable insights. valuable nd the the nd
I CEU eTD Collection Bibliography Appendice Conclusion Estonia Hungary The Yardstick frameworkTheoretical and methodology European Eastern The welfare Central regimes and Open Meth Introduction Table of Contents Main findings 2008 2004 Main findings 2008 2004 - - - - 2014 Institutional and policy environment after Institutional environment 2014 policy the and crisis Policy 2008 institutionaland environment Crisis2014: its and aftermath Policy institutional2008: beforeand environment crisis the – –
incremental changes moreincremental anew, toward systemsocial
...... gradual gradual curtailing ofsocialpolicies
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...... EU social and employment policies social employment EU and
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66 59 56 54 48 43 43 41 35 25 25 18 13
5 1
CEU eTD Collection (OMC)?,” 3 Politics World 2 Slovak Poland, Republic, Czech 1 framework the with line in region CEE the categorize to tries which literature (VoC) Capitalism w variations state welfare various the on centered literature the is which situated, is thesis the where context key another is there literature influence external and Europeanization the to addition In States. Member the is it and Union European Coordination The OpenMethodof t literature of relevant body wide the still by evidenced are policies State Member on tools governance EU of forms various Western from influence the enumerates in of sources Jacoby various article review excellent scholars his by In done economics. transition work with the concerned to addition in literature Europeanization the within discussed and region the on influence external of question The influence. this of outcome the determines environment institutional national the how as well asstates member in policy social promoting and formulating on period accession crisis. Europe Eastern at aimed is thesis master The Introduction
Wade Jacoby, “Inspiration, Coalition, and Substitution: External Influences on Postcommunist Transformations,” Transformations,” Postcommunist on Influences External Substitution: and Coalition, “Inspiration, Jacoby, Wade Lithuania, Latvia, Estonia, countries: following the to refers (CEE) Europe Eastern Central term the thesis, the In aoie e a ot ad hlpe oht “h ad o (tl) td te pn ehd f Co of Method Open the Study (still) How and “Why Pochet, Philippe and Porte la De Caroline 1
The research aims to understand the extent and power of power and extent the understand to aims research The Journal of European Soci of European Journal
58, no. 04 (2006): 623 (2006): 04 no. 58,
(CEE)
stitutional changes in the post the in changes stitutional
after the 2004 European Union enlargement round and the 2008 financial2008 the andround enlargementUnion European 2004 after the - Europe or the United States. United the or Europe
an al Policy al Hungary, Republic, ti te ein Aog hs ru w cn id h Vreis of Varieties the find can we group this Among region. the ithin –
51. important coordination tool of tool coordination important analysing
22, no. 3 (2012): 336 22, no.(2012): 3
(OMC)
t efc o tasto otoe hs en frequently been has outcomes transition on effect its the changes in social policies and institutions in Central Central in institutions and policies social in changes the cited in the review article of D of article review the in cited
Slovenia, Croatia, Bulgaria and Romania. and Bulgaria Croatia, Slovenia, is a particularly interesting governance method of method the interesting governance particularly a is 1
– 49. - socialist transition with special emphasis on emphasis special with transition socialist 2
Moreover, discussion on the effects of the the of effects the on discussion Moreover,
social policy development between development policy social the European Union in the post post the in Union European the e la Port la e
e and Pochet and e - Ordination Ordination dy as oday . 3
CEU eTD Collection 2012). S Welfare Post The “Aftershock: Liddle, Roger 7 6 Vanhuysse, Pieter and AlfioCerami Inglot, Tomasz 2012); Press, 5 Economy,” Market Esto the and Capitalism of “Varieties Feldmann, Europe,” Magnus Central East in Economies Market Dependent of Emergence Pr University Oxford 4 development. their institutional policy and Open the to reacted States Member new condu by literature the of shortcomings these address to is thesis the level. State Member and European both on effects profound d mainly are development their and states welfare European Eastern Central the with concerned Western the towards Coord of of Open lack the with dealing literature the in region the European Eastern Central the to attention is gap identifiable one First, developed. further be can that areas and gaps some in the by evidenced further as However, institutional the assessing as well as region the development. in states welfare of typology a on creating centered are that published research influential are there framework VoC the to addition peculiarities. States’ Member new the fit it make to it modify to tries or Soskice and Hall of For the details of the various effects of the crisis on social policies and Member States see: see: States Member and policies social on crisis the of effects various the of details the For De la De Greskovits, Béla and Bohle Dorothee Soskice, David and Hall A Peter iscussing the developments prior to the financial and European sovereign debt crisis which had had which crisis debt sovereign European and financial the to prior developments the iscussing
Porte and Pochet, “Why and How (still) Study the Open Method ofCo theOpen Method Study How and (still) Pochet,“Why and Porte tate? Ideas, Policies and Challenges and Policies Ideas, tate? ination. The rev The ination. 5
Communist and Post and Communist ess, 2001); Andreas Nölke and Arjan Vliegenthart, “Enlarging the Varieties of Capitalism: The The Capitalism: of Varieties the “Enlarging Vliegenthart, Arjan and Nölke Andreas 2001); ess, - uoen ebr States. Member European iew article of D of article iew Welfare States in East Central Europe Central East in States Welfare
Varieties of Capitalism: The Institutional Foundations of Comparative Advantage Comparative of Foundations Institutional The Capitalism: of Varieties Post
- - Crisis Social Investment Welfare State in Europe,” in Europe,” in State Welfare Investment Social Crisis Communist Studies Communist , ed. Nathalie Morel, Bruno Palier, and Joakim Palme (Bristol: Policy Press, Press, Policy (Bristol: Palme Joakim and Palier, Bruno Morel, Nathalie ed. , - Capitalist Diversity on Diversity Capitalist Communist Welfare Pathways Welfare Communist - e la Port la e depth literature depth
Method of Coo of Method
46, no. 4 (December 2013):493 (December 4 46, no. nian Economy: Institutions, Growth and Crisis in a Liberal Liberal a in Crisis and Growth Institutions, Economy: nian 2 6
e and Pochet and e Second, the main body of the works that are are that works the of body main the Second, Europe’s Periphery Europe’s
(Cambridge: Cambridge University Press, 2008); 2008); Press, University Cambridge (Cambridge: (Palgrave Macmil (Palgrave
review chapter, the above literature has literature above the chapter, review rdination World Politics World 7
The goal and the value added of added value the and goal The
clearly displays the attention bias attention the displays clearly (Ithaca and London: Cornell University Cornell London: and (Ithaca - Ordination (OMC)?” Ordination
and how the crisis impacted impacted crisis the how and cting a deeper study of how how of study deeper a cting lan, 2009).
– 1 n. 4 20) 670 (2009): 04 no. 61, 501. Towards a Social InvestmentSocial a Towards
Patrick Diamond and and Diamond Patrick
-
Method (Oxford: (Oxford: – 4 702; 702;
In In CEU eTD Collection other. each towards converging 9 Perspective 8 case the to background theoretical the gives it how institutionalismhistorical and overviewing to dedicated is chapter second The works. certain of relevance the highlight and insights previous the outline clearly to is section this of aim The de institutional and classification state welfare the on Open and Coordination the of on Method both literature, the of review detailed the with concerned is chapter first The forces. and making policy social influence to able is EU the that formulated, is hypothesis a question research the to connection salient? more characteristics individual made crisis financial the has or states member new the converge some observe can we whether is thesis the of question research study. the for candidates suitable t that thesis. the of methodologicalchapter and review literaturethe in elaborated further and literature, the in policy different and environment tran the countries over two the of preferences institutional distinct the by informed was selection case 2004 since joined that States Member new path and incremental often is dependent. change where perspective historical a in development their research ins the goal this achieve to order In
Convergence here is used in its conventional meaning, that the respective social policies of new member states are are states member new of policies social respective the that meaning, conventional its in used is here Convergence in Institutionalism?,” Historical Is “What Steinmo, Sven titutionalism which puts emphasis on the importance of various institutions as well as viewing as well as institutions various of importance the on emphasis puts which titutionalism he two case studies are viewed as two fundamentally different fundamentally two as viewed are studies case two he
In sum, based on the typology of Bohle and Greskovits and Aslund and Djankov it is it Djankov clear Greskovits ofBohle and typology Aslundand sum, and In basedthe on , ed. Donatella Della Porta and Michael Keating (Cambridge: Cambridge University Press, 2008). Press, University Cambridge (Cambridge: Keating Michael and Porta Della Donatella , ed. 8
Since the format of the thesis does not allow for an all an for allow not does thesis the of format the Since institutional change in the new member states despite their strong inner inner strong their despite states member new the in change institutional
Based on the literature and theoretical framework, the central central the framework, theoretical and literature the on Based ,
Hungary and Estonia and Hungary sition years. These differences are well documented well are differences These years. sition studies. Moreover, the dependent and independent and dependent the Moreover, studies.
3 utilize the theoretical framework of historical historical of framework theoretical the utilize
Approaches and Methodologies in the Social Sciences: A Pluralist Pluralist A Sciences: Social the in Methodologies and Approaches
are selected are - models enc ompassing study of all all of study ompassing nce in social policy in policy social in nce
as case studies. The studies. case as which makes them makes which velopment. velopment.
9
In - CEU eTD Collection research. po and conclusions final the drawing and findings main the structuring concluded is thesis the Finally, section. concluding short a contains each and review literature the as used are that policies EU the of description detailed the and Estonia and Hungary of study case the with chapter fourth the is thesis the of section main The chapter. this in introduced are variables
‘yardsticks’ for the cases. Both cases are contrasted with the main insights from the from insights main the with contrasted are cases Both cases. the for ‘yardsticks’
4
ssible avenues for further further for avenues ssible by CEU eTD Collection 2012). Press, University Oxford (Oxford: K. Augustin Fosu Countries, ed. Advanced More 13 12 1990). Press, 11 2014). (SIEPS), Studies EuropeanPolicy for Institute Swedish (Stockholm: 2020 Europe in Coordination Policy 10 than mixed and diverse more systemswelfare European Central pre of traditions merging “The statements: improvisation. p of path a followed than rather plan master a alongside pr is con “permanent Inglot as ofstates Europe. welfarenew to classify the onhow done work considerable is There thethesis contribute. literature where can the identify and research of state current the on view clear a give to is separation policies. Coordination of Method formation policy state membert of introduction on influence EU of aspects various the the on focused sub and models welfare different the with concerned is one first The sections. major two into grouped is review literature The nexus of Coordination Method Open and welfare regimes European Eastern The Central eiu wrs Sir ad Tomka and Szikra works, revious
oahn eti ad at ahrk, oilzn te uoen Semester European the Socializing Vanhercke, Bart and Zeitlin Jonathan
László Csaba, “The Janus Faced Success Story: Hungary,” in Development Success: Historical Accounts from from Accounts Historical Success: Development in Hungary,” Story: Success Faced Janus “The Csaba, László 307. Europe, Central inEast States Welfare Inglot, Esping Gosta esent in the analysis of Csaba Csaba of analysis the in esent
ocfly demonstrates forcefully - Andersen, The Three Worlds of Welfare Capitalism (Princeton, New Jersey: Princeton University University Princeton Jersey: New (Princeton, Capitalism Welfare of Worlds Three The Andersen, Open Method of Coordination and details the relevant research that investigated investigated that research relevant the details and Coordination of Method Open struction sites” rather than rather sites” struction he European Semester it incorporates the social and employment related Open related employment and social the incorporates it Semester European he
- region 10 i mgt e etr o iw h rgo’ dvlpet as development region’s the view to better be might it ,
who concludes that since 2004 Hungary did not progressed progressed not did Hungary 2004 since that concludes who The aim of the detailed literature review and this structural structural this and review literature detailed the of aim The
offers long historical view and reinforces the previous previous the reinforces and view historical long offers al peculiarities within the CEE region. The second part is part second Theregion. CEE the within peculiarities al
- war development and state and development war finished clearly distinguishable units distinguishable clearly finished
5
their Western counterparts. This This counterparts. Western their ?: Economic Governance and Social Social and Governance Economic ?: - socialism have made East East made have socialism 13
n addi In Sne h 2011 the Since . . 12
This sentiment sentiment This 11 tion to the the to tion
a i the in gap
However,
CEU eTD Collection 18 Economy.” Market 17 Europe.” Central inEast 16 15 33. 2009), Macmillan, Palgrave Vanhuysse (Basingstoke: Pieter and in 14 Greskovits and Bohle hand, other the On thesis. the in typology state welfare CEE for basis the as use to alternative available best the not is it categorization, type ideal cut, clear a has th From approach. VoC the and inclusiveness. political and social on based economies market social as seen is Hungary with group Visegrád The state. welfare non and marketization quick with neoliberal purely are countries theBaltic categorization their In region. the in arrangements welfare various the for typology a out map to approach Polanyian different, a took Greskovits and Bohle book recent economy market liberal a as Estonia establishing of short falls article the endeavour economy. market liberal c and case inflow. investment foreign of amount huge the of because economies market dependent as characterized c approach VoC the of economies Practitioners market coordinated and economies market liberal of cases ideal the developed approach Capitalism of Varieties the from democratic’.” ‘social ‘conservative of categories the into them place to difficult it makes
Nölke and Vliegenthart, “Enlarging the Varieties of Capitalism: The Emergence of Dependent Market Economies Economies Market Dependent of Emergence The Capitalism: of Varieties the “Enlarging Vliegenthart, and Nölke Soskice, and Hall Century,” Twentieth the in Trends Major Europe: Central East in Policy “Social Tomka, Béla and Szikra Dorottya Bohle and Greskovits, Greskovits, Bohleand Feldmann, “Varieties of Capitalism and the Estonian Economy: Institutions, Growth and Crisis in a Liberal Liberal a in Crisis and Growth Institutions, Economy: Estonian the and Capitalism of “Varieties Feldmann, Post - Communist Welfare Pathways Pathways Welfare Communist 16
In addition to this, Feldmann tries to fit the original VoC framework to the Estonian the to framework VoC original the fit to tries Feldmann this, to addition In omes to the conclusion that, with some restrictions, the country might qualify as a a as qualify might country the restrictions, some with that, conclusion the to omes
Varieties of Ca Varieties 14
Capitalist Diversity on Periphery Europe’s Diversity Capitalist
On the other hand, another hand, other the On 17
pitalism: The Institutional Foundations of Comparative Advantage of Comparative Foundations TheInstitutional pitalism: While applying the VoC framework to Estonia is an interesting interesting an is Estonia to framework VoC the applying While -
Theorizing Social Policy Transformations in Central and Eastern E Eastern and Central in Transformations Policy Social Theorizing
18 e above cited works it is shown that while the VoC framework VoC the while that shown is it works cited above e
Their typology offers a middle ground between Inglot, Csaba Csaba Inglot, between ground middle a offers typology Their ome to the conclusion that countries in the region can be can region the in countries that conclusion the to ome hc was which 6
.
approach to categorize the region originates region the categorize to approach
- inclusive inclusive inee b Hl ad Soskice and Hall by pioneered democracies - oprts’ ‘iea’ and ‘liberal’ corporatist’, .
urope
ih dismantled with , ed. Alfio Cerami Cerami Alfio ed. , . crea In their In
who te .
15 a
CEU eTD Collection (1989):32 23 22 (2014):371 21 MarketStudies 20 2014). Economics, International for Institute Peterson DC: (Washington, 19 follow a In region. the of backwardness sustained of puzzle the answering to approach argued forcefully optimal or common as thing such trajectory.” “no is there and, development to paths different took question in countries the that clear is It attributes. specific region’s the into inquiries academic E of part general Eastern to the and leads core that the between region convergence the in growth sustained into translate not do successes partial States. Member old the than Fund Development Regional European rate absorption higher of capable generally are NMS the that shown been capital. foreign for competitors major other the of ahead is region the capita, even the members. core Union’s European the to up catching economy market of adoption subsequent the and Union Soviet the of collapse the followed that change regime The Tomka. notes and ofSzikra Inglot, Csaba, cautionary the with thesis, the of inquiries the for point starting a as used be can that typology
László Csaba, “The New Political Economy of Emerging Europe,” ofEmerging Economy Political New “The LászlóCsaba, Analysis,” Comparative A Funds: Regional of “Absorption Tosun, Jale Medve Gergő nrw Jns “h Pltc o Bcwrns i Cnietl uoe 1780 Europe, Continental in Backwardness of Politics “The Janos, C Andrew Anders Aslund and Simeon Djankov, Djankov, Simeon and Aslund Anders n
ew oe established more 5 m – – 58. 87. ember ember 22
52, no. 1 (2014): 35 (2014): 1 52, no.
These developments and developments These - Bálint, “The Role of the EU in Shaping FDI Flows to East Central Europe,” Europe,” Central East to Flows FDI Shaping in EU the of Role “The Bálint,
s by tates (NMS) of the European Union outperform other emerging markets or markets emerging other outperform Union European the of (NMS) tates
and democratization led policy makers and scholars to expect a successful a expect to scholars and makers policy led democratization and
nrw Janos Andrew m
ember ember – 51.
s tates. Firstly, in Foreign Direct Investment (FDI) stock per per stock (FDI) Investment Direct Foreign in Firstly, tates. h Get eit: esn fo th from Lessons Rebirth: Great The
n his in
variations can be seen as a result of path dependency as dependency path of result a as seen be can variations
eia work. seminal 7
19
Indeed there are some indicators where where indicators some are there Indeed Budapest: Akadémiai Kiadó Akadémiai Budapest: rp. hs rmtd nme of number a prompted This urope. 23
Journal of C of Journal He offers a historic institutional institutional historic a offers He Vcoy f aiaim vr Communism over Capitalism of Victory e – 1945,” ommon Market Studies Market ommon s of the funds from the from funds the of s 21
Unfortunately, these these Unfortunately, World Politics World , 2005, 68. 2005, , 20
Secondly, it has it Secondly, Journal of Common Common of Journal
- 41, no. 03 03 no. 41, up study up
52, no. 2 2 no. 52,
CEU eTD Collection 2010). Press, 27 26 2000,” Since Romania and Hungary, Poland, 25 Studies 24 setting institutional various and in outcomes policy making into translate policy ideas OMC regulatory the how method, Community the to distributionalintergovernmentalism and policy. next EU, the in making EU the O The statusnew quo. the examine and crisis the beyond research previous the extend to is thesis the of aims the of one in lacks region. the within policies and institutions in changes assess to effectively demonstrates overviewed capacity administrative actual and ambition state aspiring post the in bottleneck major the of one that founds he Hungary of case the In policy. social impeding or aiding to contributed region the in legacies institutional long and insurance path term long of sign clear a is there Romania, and Poland Hungary, s to but processes economic to limited Inglot article, recent a in Furthermore, backwardness theEU. economic within Epste Rachel
Helen Wallace, Mark Pollack, and Alasdair Young, Young, Alasdair and Pollack, Mark Wallace, Helen Inglot, Post “Reforming Raţ, Cristina and Szikra, Dorottya Inglot, Tomasz ahl Epstein, A Rachel
52, no. 1 (2014): 17 (2014): 1 52, no. pen - Welfare States in East Central Europe Central in East States Welfare have depth analy depth -
M
ethod of ethod in builds on this theoretical framework in order to provide an explanation for the the for explanation an provide to order in framework theoretical this on builds in been widely studied since its introduction. It was termed as the fifth mode of policy policy of mode fifth the as termed was It introduction. its since studied widely been
“Overcoming ‘Economic Backwardness’ in the European Union,” Union,” European the in Backwardness’ ‘Economic “Overcoming - term child care leaves. care child term sis of social policy changes after the 2008 crisis and its aftermath therefore aftermath its and crisis 2008 the after changes policy social of sis – C 34. oordination
that historic institutionalism is a suitable framework that can be used be can that framework suitable a is institutionalism historic that
, 295. as an iterative policy cycle a cycle policy iterative an as Problems of Post of Problems , Szikra and Rat and Szikra , 24 ocial policies as well. They conclude that in the case of case the in that conclude They well. as policies ocial
25
In addition to this finding, Inglot finding, this to addition In Policy 27 8
T
- - Communism Making in the European Union European the in Making he main question that is central to this thesis is tothis question is main thatisthesis he central
shows that path that shows
. - 59, no. 6 (November 1, 2012): 27 1, 2012): (November 6 59, no. 26 Communist Welfare States: Family Policy Family States: Welfare Communist
h hsoial informed historically The nd a new mode of governance in governance of mode new a nd - 1989 period is a gap between gap a is period 1989 - dependency in maternity in dependency -
dependency is not only not is dependency (Oxford: Oxford University University Oxford (Oxford: However Journal of Common Market Market Common of Journal demonstrates , the literature the , – s 49. I an In . research research
how how
in in CEU eTD Collection Strategies in Strategy,” Reform Realities, 32 Europe,” Eastern 31 actor different between socialization and information 2007). Macmillan, Palgrave (Basingstoke: Wessels and Governance B “New A EU. the Vifell, of Government Asa and Policy Jacobsson Employment (Kerstin in in Strategy Structures Employment European the on work their In Enlargement,” so the enhances the whichfurther after Committee Protection Social the Integration within Practices Informal Politics? to Policy 30 Reforms onNational of Coordination Mechanisms Influences, 29 28 servan “civil involve can it since mechanism, broad a is ideas of diffusion process. OMC the on based policies connected better to potential the demonstrates pensio as such issues, policy separate hitherto between connections reflexive new making such involved has cases, learning some “in Zeitlin, by reported As practices. and experiences others’ on fragmented. and divided is participation civic since region CEE the within application its on outlook optimistic representation. civil and NGOs various Council, and and process the in stakeholders various between ideas peer the or (SPC) Committee Protection Social the as such institutions, informal or formal within ‘socializing’ are actors different where process domesticactors. by appropriation creative support,and financial diffusion. main three mechani list transfer Pochet and ideational Porte la De subfield OMC the on article review encompassing
oahn eti, Cnlso: h Oe Mto o Co of Method Open The “Conclusion: Zeitlin, Jonathan and Central in Society Civil and Enlargement EU Want: You What Get Always Don’t You “Why Börzel, A Tanja Protecti Social the by played role The ofCo theOpen Method Study How and (still) Pochet,“Why and Porte la De Jonathan Zeitlin, “The Open Method of Coordination and National Social and Employment Policy Reforms: Reforms: Policy Employment and Social National and Coordination of Method Open “The Zeitlin, Jonathan ns and lifelong learning or women’s employment and childcare provision”, childcare and employment women’s or learning lifelong and ns , ed. Philippe Pochet and Lars Magnusson (Brussels: Peter Lang, 2005),26. Lang, Peter (Brussels: Magnusson Lars and PhilippePochet , ed.
0 n. (08: 545 (2008): 4 no. 30, 28
Moreover, Zeitlin lists additional mechanisms of influence such as external pressure, external as such influence of mechanisms additional lists Zeitlin Moreover, Acta Politica Acta 31
Second, reflex Second, , Effects,” in in Effects,” , alance Sheet of New Modes of Policy Coordination Policy of Modes New of Sheet alance
cialization mechanism. mechanism. cialization 45, no. 1 (2010): 1 45, no.(2010): 1
The Open Method of Co of Method Open The , ed. Martin Heidenreich and Jonathan Zeitlin (London: Routledge, 2009),12 Routledge, (London: Zeitlin Jonathan and Heidenreich Martin , ed. – 61; Horvath highlights that the SPC works on the basis of consensuality (p556) (p556) consensuality of basis the on works SPC the that highlights Horvath 61; m fr h OC rcs: oilzto, sl) elxvt and reflexivity (self) socialization, process: OMC the for sms - aig Tkn Sok f h Erpa Epomn Srtg, in Strategy,” Employment European the of Stock Taking Making?
Changing European Employment and Welfare Regimes: The Influence of the Open Method Method Open the of Influence The Regimes: Welfare and Employment European Changing ivity involves evaluating the member states own policies based policies own states member the evaluating involves ivity on Committee in the OMC process is elaborated in in elaborated is process OMC the in Committee on – 10.
s affected policy making. policy saffected
- Ordination in Action: The European Employme European The Action: in Ordination
put emphasis on how the different platforms for sharing sharing for platforms different the how on emphasis put - 9 review program. This facilitates the exchange of exchange the facilitates This program. review
- Ordination in Action: Theoretical Promise, Empirical Empirical Promise, Theoretical Action: in Ordination
involves member states, the Commission Commission the states, member involves 30 , ed. Ingo Linsenmann, Christoph O. Meyer, Meyer, O. Christoph Linsenmann, Ingo ed. ,
hs ehns cris ls than less a carries mechanism This 29
- First, socialization refers socialization First, Ordination (OMC)?” Ordination
ts, parliamentarians, parliamentarians, ts, Anna Horvath, “Fr Horvath, Anna nt and Social Inclusion Inclusion Social and nt 32
which finding finding which
Third, the the Third, European European Economic Economic – to the the to 19.
om om CEU eTD Collection Tool,” Governance a 36 35 M 34 33 the effects of gov theOMC better to allow they since studies case the for orientation of points valuable provides ideas. domestic difference are there where areas those to service lip paying and agenda domestic the with line in are that ideas those picking cherry in result can policies suitable of selection carte la á this However, agenda. policy their further to recommendations non other and NGOs agencies, specialized policies.” employment and social national creative priorities. policy domestic reshaping to and states member new the in building capacity contributed greatly this Zeitlin to According Funds. Structural through support forth. so and process OMC of visibility national EU, the of perception the as such settings, domestic upon dependent is formation policy on effectiveness pressure’s external mechanisms, other the even or oth by pressure guiding peer and Commission and the by shaming” and coaching „naming via pressure states) member (between horizontal and state) member the to EU the (from vertical both combine to used is pressure external term the Fourth, relevant the involving process: stakeholders, EU non and bothgovernmental, OMC the of nature very the from stems it since interesting media.” the as well as experts, and organisations stakeholder
echanisms, Effects.” echanisms, Paul Copeland and Beryl ter Haar, “A Toothless Bite? The Effectiveness of the European Employment Strategy as as Strategy Employment European the of Effectiveness The Bite? “AToothless Haar, ter Beryl and Copeland Paul Ibid.,17. Influences, Reforms: Policy Employment and Social National and Coordination of Method Open “The Zeitlin, ofCo theOpen Method Study How and (still) Pochet,“Why and Porte la De 34
n diin o hs ot method, soft this to addition In appropriation, which is argued to argued is which appropriation,
36
This literature on the various transmission mechanisms and forms of influences influences of forms and mechanisms transmission various the on literature This Journal of European Social Policy EuropeanSocial of Journal
ernance and other and strategies.ernance EU
35 23, no. 1 (February 1, 2013): 21 1, 2013): (February 1 23, no. an an be ” be
Member state governments, individual ministries or or ministries individual governments, state Member - often gover 10 - the strongest mechanism of OMC influence on influence OMC of mechanism strongest the tt atr efciey s OC ideas OMC use effectively actors state
nmental. nmental. neglected channel of influence is financial financial is influence of channel neglected s between the OMC propositions and and propositions OMC the between s
33
This mechanism is particularly particularly is mechanism This - Ordination (OMC)?,” 341. (OMC)?,” Ordination – 36. er member states. As with with As states. member er
to administrative to categorise
Finally, Finally,
and and
CEU eTD Collection Hungary and 40 Stat Member EUChallenges the of Policies Employment 39 thevariat oversimplifies greatly Thisapproach 23 (2009): 1 Eastern in Regimes Welfare New Europe,” Esping 38 Effects.” Mechanisms, 37 institutions organization.” interest vibrant and Acco participation. civic andinstitutionstate quality of thelack to back traced becan shortcomingswhich implementation She accession. how examines and for cases scapegoat Hungarian a as used mainly they but liberalization. states member CEE with well resonates etc.) up flexicurity, as (such OMC employment and social of message main The retrenchment. state welfare and deregulation for justification a as served importance. li as models, welfare different affects OMC how on findings the relationship complex this untangle to is thesis this of aim primary the Since butthisideas function is a ofdomestic influence institutions, norms, social and outcomes policy state member influence to ways many has process OMC the shown, As
Beate Sissenich, Beate of work seminal the from models welfare various the for typology their derive authors the article cited the In Employm and Social National and Coordination of Method Open “The Zeitlin, Caroline De la Porte and Kerstin Jacobsson, “Social Investment or Recommodification? Assessing the the Assessing Recommodification? or Investment “Social Jacobsson, Kerstin and Porte la De Caroline - A , ed. N. Morel, B. Palier, and J. Palme (Bristol: Policy Press, 2012), 117 2012),Press, (Bristol: Policy Palme J. and B.Palier, N.Morel, , ed. ndersen, ndersen, Journal of European Social Policy Social European of Journal
– (Plymouth: Lexington Books, 2007), 5. 2007), Books, Lexington (Plymouth: 39. 38
39
Based on limited research they assess that the OMC process in the CEE region has has region CEE the in process OMC the that assessthey research limited on Based Their categories are the following: universal, liberal, post liberal, universal, following: the are categories Their
effectively argues effectively While not directly related to the OMC literature, Sissenich looks at the Polish and and Polish the at looks Sissenich literature, OMC the to related directly not While The Three Worlds of Welfare Capitalism Welfare ofWorlds Three The Building States without Society: Euro Society: without States Building
rding to Sissenich, effective “rule transfers work if state has strong state strong has state if work transfers “rule effective Sissenich, to rding
Europe: Challenges and Implications,” Implications,” and Challenges Europe:
that despite heavy conditionality from the EU both cases display cases both EU the from conditionality heavy despite that n. (96: 17 (1996): 6 no. , ion and distinctive features of the various CEE welfare arrangements. welfare CEE ofthevarious features distinctive and ion hy fared they s” in es,”
pean Union Enlargement and the Transfer of EU Social Policy to Poland Poland to Policy Social EU of Transfer the and Enlargement Union pean ; Maurizio Ferrera, “The ‘Southern Model’ of Welfareinof Social Model’ ‘Southern “The Ferrera, Maurizio ;
40 11
td n e a ot ad Pochet and Porte la De in sted Towards a Social Investment Welfare State? Ideas, Policies and and Policies Ideas, State? Welfare Investment Social a Towards – 7 Jlna iuat, Od efr Sae hois and Theories State Welfare “Old Aidukaite, Jolanta 37;
n U so EU in - skilling, lifelong learning, lifelong skilling, - Communist and Post and Communist socialist, conservative and Mediterraniean. Mediterraniean. and conservative socialist, il oiy dpin uig their during adoption policy cial – 52.
ent Policy Reforms: Influences, Influences, Reforms: Policy ent and historic and - Communist Studies Communist
social inclusion, social bas great bears ,
heritage.
42, no.42, 37
CEU eTD Collection States.” EUMember ofthe Policies Employment the Assessing Recommodification? or Investment Poland,” and Italy 43 Herring,” Red Fashionable Other 42 41 thesis its and casestudies. the by contribution for opportunity an provides literature existing the in gap This investigated. there While countries. CEE the of experiences specific the about little speaks it Coordination of Method Open the and theimportance possible of theabove influence is detailed literature helpfulinoutlining While the undermines legitimacy further and potential promised its to up live not does which herring’, ‘red a process. the to menti already been has One critique. without not is it interest much generated process OMC the Although
Anna Gwiazda, “The Europeanization of Flexicurity: The Lisbon Strategy’s Impact on Employment Policies in in Policies Employment on Impact Strategy’s Lisbon The Flexicurity: of Europeanization “The Gwiazda, Anna Bite?” “AToothless Haar, and Copeland io dm ad ail Klmn “e Mds f oenne te pn ehd f Co of Method Open the Governance, of Modes “New Kelemen, R Daniel and Idema Timo
of policy EU making. oned, as Copeland and te and Copeland as oned, 41
In addition to this, some view OMC and the other new modes of governance as as governance of modes new other the and OMC view some this, to addition In ora o Erpa Pbi Policy Public European of Journal s oe iie r limited some is
Perspectives on European Politics and Society and Politics European on Perspectives
42
r Haar r esearch
8 n. (01: 546 (2011): 4 no. 18,
argue that member states mostly just pay lip service lip pay just mostlystates member that argue 12
oe n h subject the on done
7, no. 1 (2006): 108 7, no.(2006): 1 – 65; De De 65; la Porte and Jacobsson, “Social “Social Jacobsson, and Porte la 43
t ean lrey un largely remains it – 23.
- Ordination and and Ordination der der CEU eTD Collection Growth Economic and Institutions, Globalization, Recipes: 167 1996), Poverty and Prosperity, Power, of Origins The Fail: Press, University 46 Oxford (Oxford: Institutionalism?” Klingemann Dieter in Cambrid Perspectives,” Choice Rational (Cambridge: Institutions: Thelen Kathleen and Mahoney in Perspective,” Sociological and Rationalist Performance Economic 45 44 Sala in cited prominent t demonstrated quantifiable has things scholars all beyond moving where institutionalism economic for true holds even This outcomes. policy and development of part essential are institutions that idea the interact they how and change institutions how on vary may alongside family, institutionalism rational larger the of part a is it but inquires empirical for method o not is institutionalism historical Moreover, indicators. and outcomes policy events, of analysis careful by up backed and questions empirical by driven is it approach: this of advantages politica shape and structure institutions which in ways the to attention its and orientation historical its questions, empirical world real to attention its by approaches science social other from distinguished is approach scho influential the of one as study Steinmo, Sven to economy. approach political an than rather is, functionalism or intergovernmentalism liberal as sense a in theory, a not is It institutionalism. historical is thesis the of backbone theoretical main The T
North, North, see, institutionalism of forms various on literature wider a For 1. Institutionalism?,” Historical Is “What Steinmo, heoretical framework heoretical - Institutions, Institutional Change and Eco and Change Institutional Institutions, choice, sociological and economic institutionalism. economic and sociological choice, - I Martin, “the EU was founded not on the calculations of costs and benefits of freer freer of benefits and costs of calculations the on not founded was EU “the Martin,I
(Cam bridge: Cambridge University Press, 1990); Peter A. Hall, “Historical Institutionalism in in Institutionalism “Historical Hall, A. Peter 1990); Press, University Cambridge bridge:
l behaviour a isiuin cn ae r ra a onre development. countries a break or make can institutions hat
and methodology and
(New York: Crown Business, 2012); Dani Rodrik, Rodrik, Dani 2012); Business, Crown York: (New nomic Performance nomic
xliig ntttoa Cag: miut, gny ad Power and Agency, Ambiguity, Change: Institutional Explaining and outcomes.” and A New Handbook of Political Science Political of Handbook New A
(Princeton: P (Princeton:
ge University Press, 2009); Barry R Weingast, “Political “Political Weingast, R Barry 2009); Press, University ge 13
; Daron Acemoglu and James Robinson, Robinson, James and Acemoglu Daron ; rinceton University Press, 2008). Press, rincetonUniversity 44 Douglass North, North, Douglass
This sentence perfectly summarizes the the summarizes perfectly sentence This
45 with different actors, they all agree in agree all they actors, different with
While different schools of thought of schools different While – 0 Seno “ht Is “What Steinmo, 90; lars in the field, puts it, “this “this it, puts field, the in lars , ed. Robert E. Goodin and Hans and Goodin E. Robert ed. , Institutions, Institutional Change and and Institutional Change Institutions,
One Economics, Many Many Economics, One Why Nations Nations Why
, ed. James James ed. , Historical Historical l a nly 46
As As - CEU eTD Collection 1962). Publishers, Praeger (New York: Gerschenkron, Alexander 1985); Press, University 51 Performance 50 is information that implies 49 also assumption This benefits. their maximize calculations. such to make available to order in act and benefits and costs 48 Bank Development American 47 be can Europe Eastern Central in backwardness economic how down lays work seminal Economic Gerschenkron’s or historical of number a by evidenced is dependence map depend path is framework this of element major One inoutcomes, asreferenced Steinmo policyshape actively institutionscontext, providing and game the of rules constraints, creating by whose actors beings human viewing for allows ground middle this Steinmo, sociological normative more the and theory institutional bet ground middle theoretical a in stands it tools main on focused is institutionalism historical While EU and institutions shapingthe national play at outcome. are tie This analysis. for ground fertile a creates which national, and supranational both institutions, various is EU the since framework theoretical of choice the reinforces further This and capital flexible more or trade
Path dependency is sometimes reffered reffered sometimes is dependency Path See, See, Steinmo, “What Is Historical Institutionalism?” Historical Is “What Steinmo, o and individuals the acting before where behavior, certain a to refers Rationality Sala Xavier u a isiuinl equilibrium institutional an out ee J Katzenstein, J Peter
. ak o h ltrtr rve o sca policy social on review literature the to back )
- i - Martin, “Economic Integration, Growth, and Poverty,” Poverty,” and Growth, Integration, “Economic Martin, preferred , 2007, 10. , 2007,
action de action ml Sae i Wrd akt: nutil oiy n Europe in Policy Industrial Markets: World in States Small
Backwardness.
pends on the context and and context the on pends labour . 49 s lc i effect” in „lock as
hc i mitie va self via maintained is which
mobility but on the political and institutional gai institutional and political the on but mobility cnmc Back Economic 51
14 In addition to these studies, Andrew Janos in his his in Janos Andrew studies, these to addition In analysing
researches
( North, North,
ency which means that initial conditions initial that means which ency wardness in Historical Perspective Perspective Historical in wardness oprto wti te U wee both where EU, the within cooperation
historical events and process tracing as tracing process and events historical institutionalism en h mr src rtoa choice rational strict more the ween rules that rules Integration and Trade Policy Issues Paper , Inter , Paper Issues Policy Trade and Integration Institutions, Institutional Change and Economic Economic and Change Institutional Institutions,
, such as Katzenstein’s Small States States Small Katzenstein’s as such , s rational as
- are: institutions. are: rganizations carefully weight their their weight carefully rganizations reinforcement.
(Ithaca and London: Cornell Cornell London: and (Ithaca . As briefly outlined in outlined briefly As .
a and norm abiding abiding norm and
dense network of network dense -
Bo o Essays of Book A 50 48
Such path path Such Moreover, Moreover, ns.” 47 -
CEU eTD Collection 55 Institutionalism,” in Historical Counterfactuals 54 53 52 pre a with faced were countries both round enlargement 2004 the to prior place in been has framework OMC the Since Union. European the joined they after countries these in evolved utilizes thesis The juncture status quo.” „re a options, departing ent is it Moreover, juncture. critical equal not does change institutional that mind in keep must we event breaking path a as qualifies event an if establish to trying when that stress authors The dependency. path renewed to way giving new a made been has choice the after and possible are change for alternatives new several juncture critical such of period brief the during article, Kelemen and Capoccia the on wi choices agents' that probability heightened substantially a is there which during time of periods short relatively are will definition following the thesis the During junctures. critical termed self The the currentsituation tolead butfailed hastoconvergence. asFDI productivity increased for holds Janos of theory the that finds She region. the in concentrated FDI of amount high the Eur Eastern Central in consumption and savings between disequilibria the on focused EU. the within backwardness economic the for explanation an provide to dependency. path run long to subject is backwardness this how and institutionalism historical by explained
Epstein, “Overcoming ‘Economic Backwardness’ in the European Union.” European inthe Backwardness’ ‘Economic Epstein,“Overcoming 1780 Europe, in Continental ofBackwardness Politics Janos, “The Ibid.,352.
Giovanni Capoccia and and Capoccia Giovanni - enocn pt dpnec cn e nerpe b re by interrupted be can dependency path reinforcing
52
In a follow a In ae studies case 55
ll affect the outcome of interest.” of outcome the affect ll R Daniel Kelemen, “The Study of Critical Junctures: Theory, Narrative, and and Narrative, Theory, Junctures: Critical of Study “The Kelemen, Daniel R - -
qiiru” mre ta i te te etrto o te pre the of restoration „the the is that emerges equilibrium” up study Rachel Epstein builds on this theoretical framework in order in framework theoretical this on builds Epstein Rachel study up
f ugr ad soi i odr to order in Estonia and Hungary of World Politics World irely possible that, despite the possibility for path path for possibility the despite that, possible irely 15
59, no. 03 (2007): 348. no.(2007): 03 59, 54 – 1945.”
To elaborate on this on elaborate To
latively brief periods of shocks shocks of periods brief latively
analyse apply: „critical apply: 53
equilibrium sets in, sets equilibrium
Epstein’s study is is study Epstein’s o soci how definition
junctures l policy al - ope and ope existing existing - , based based , critical critical CEU eTD Collection 57 56 and Italy in that found who Gwiazda of research the by informed is variable party political p political are with line variablechangein EU is variablesdependent policy recommendations. The independent costs. social and marketization out balance to struggle a is there where regime neoliberal regional its for setter trend and Bohle variables. independent Gre the as well as cases both for typology initial the provides juncture. critical a as used is crisis 2008 the theory outlined above the on Based pre the contrasting for allows This crisis. 2008 the by divided is which 2014 to 2004 from is research the of timeframe The inthepolicieschanges and institutions. ( Eurostat as cited and oftheEurostat database main bythe provided Thesefactors statistics indicators and are changed. external and indicators certain how showing by changes policy to context give to dedicated is prevailed. agendas domestic to and states member new European recommendations policy of interpretation to shed Eastern toOMC light thecontextual inCentral with. work to had they that mechanism coordination policy http://ec.europa.e
Bohle and Greskovits, Greskovits, Bohleand Ibid.,3.
skovits categorizes categorizes skovits if necessary respective national statistical offices, ministries. offices, statistical national respective necessary if
arties, the EU OMC influence and the respective welfare model of the country. The The country. the ofmodel welfare therespective and influence OMC EU the arties, u/eurostat/data/database Capitalist Diversity on Periphery Europe’s Diversity Capitalist are downloaded and compiled from the Eurostat online database database online Eurostat the from compiled and downloaded are the Baltic states as “champions of neoliberalism”, where Estonia is the is Estonia where neoliberalism”, of “champions as states Baltic the
Both case Both neighbours -
and po and st
studies are structured in structured are studies - . crisis assessment of the policy and institutional changes. institutional and policy the of assessment crisis analyse 56
In their typology Hungary is seen as an embedded embedded an as seen is Hungary typology their In ) . The second part of the case studies case the of part second The 16
whether EU influence has yielded results or or results yielded has influence EU whether
, 96.
The purpose of the of purpose The to
If not stated otherwise, a otherwise, stated not If
two main parts where the first the where parts main two case studies case is detailing the detailing is The literature The ll data ll 57
The The
are
CEU eTD Collection Poland.” 58 influence. significant had anti or (pro alignment party governing Poland
Gwiazda, “The Europeanization of Flexicurity: Flexicurity: of Europeanization “The Gwiazda,
58
The Lisbon Strategy’s Impact on Employment Policies in Italy and and Italy in Policies Employment on Impact Strategy’s Lisbon The 17 - European or European
centre - right or right centre - l eft leaning) eft CEU eTD Collection Jobs (2005 and Growth for Guidelines Integrated 61 Group,2004). Level High Wim (Luxembourg: by Kok” Chaired 60 2005). Commission, Jobs and Growth for Together 59 s at vital are pillarssustainability, of which theLisbon strategy.” aimed framework a within and background policy macroeconomic sound a against goals, Lisbon the achieve to employment and growth on further re Council the 2005 In monitored. at various the the to rates addition In employment workers. older of rate employment 50% and rate, employment em to Related targets. 2010 the to convergence measuring for indicators structural some were there the of changes paced fast the with and ideas sweeping formulated goals. the to up living of short fell largely it but EU the in growth inclusive and sustainable create to aimed was 2000 in Strategy Lisbon the of introduction The outcomes. employment with familiar be to important in nevertheless is it Hungary and Estonia context its and change policy social investigate to is thesis the of purpose main the While The Yardstick
hs s xrse b te mid the by expressed is This European Council, “Communication to the Spring European Council: Working Together for Growth and Jobs: Jobs: and Growth for Together Working Council: European Spring the to “Communication Council, European Group Level High the from Report Employment: and Growth for Strategy Lisbon The Challenge: the “Facing ployment and social inclusion, the 2010 targets included 70% employment rate, 60% female female 60% rate, employment 70% included targets 2010 the inclusion, social and ployment 59
hl there While 60
ee hg mhss n raig ’nweg eooy ad epn up keeping and economy’ ’knowledge a creating on emphasis high a were – -
launched the Lisbon Strategy, stating that “Europe must focus its policies policies its focus must “Europe that stating Strategy, Lisbon the launched policies employment social and EU
- - -
term evaluation report by the Commission. Commission. the by report evaluation term risk A New Start for the Lisbon Strategy; COM(2005) 24 Fina 24 COM(2005) Strategy; Lisbon the for Start New A
- of - oet rt ad og em nmlyet ae wer rates unemployment term long and rate poverty nomto ad omncto tcnlg (ICT) technology communication and information - 08)” (Luxembourg, 2005 (Luxembourg, 08)” 18
61
ocial cohesion and environmental environmental and cohesion ocial The efforts growth on focused were ),9.
European Commission, “Working “Working Commission, European the EU proposed social and social proposed EU the
l” (Brussels: European European (Brussels: l”
boom, e CEU eTD Collection (24) (23) (22) (21) (20) (19) (18) (17) 62 secure yet flexible protection, social learning, should points seven listed above re the of goal the Since increase should states member the goals the meet and outcome desired the achieve To cohesion. regional and social and employment r employment total and population older female, (on targets employment Lisbon original The solutions. policy preferred and indicators target some with guideline each of breakdown detailed provides document The 11 ofwhich guidelines, were u integrated 24 was outcome The aspects. policy social other stressing without employment and Direct list from istaken Direct
dp euain n tann systems requirements.” training and education Adapt improve and Expand Ensure employment due having segmentation, to partners.regard theroleofsocial Promote marketImprove ofneeds. labour matching job Ensure Promote life a productivity and quality at work, and „Implement - seekers, including disadvantaged theseekers, people, and including inactive. inclusive labour markets labour inclusive lxblt cmie wt epomn sec employment with combined flexibility employment policies aiming at achieving full employment full achieving at aiming policies employment I - bid.,5. 62 cycle to approach cycle ate) were formulated under the Integrated Guideline 17 on achieving full achieving on 17 Guideline Integrated the under formulated were ate)
- launch was to create a more integrated policy guideline framework the framework guideline policy integrated more a create to was launch
, as well as the numbering. Highlights are from me. from are Highlights numbering. the well as , as - friendly labour cost labour friendly developments and investment in capital human nder the’employmentThese guidelines’. were following:
be understood be
work. labour , enhance work attractiveness, and make work pay for for pay work make and attractiveness, work enhance , strengthening socialandterritorial cohesion labour
19
supply and modernize social protection systems. protection social modernize and supply as complementary for each other, where lifelong lifelong other,where each for complementary as
market p market
n epne o e competence new to response in .
olicies are all applied as parts of a of parts as applied all are olicies rt ad red and urity wage
- setting mechanisms uce labour market market labour uce , improving ,
.
.
CEU eTD Collection Welfare and “Flexicurity and Employment Regulating to Approach Markets,” New A Labour ‘flexicurity’: of Concept “The Tros, Frank and Wilthagen Ton Stu Labour Advanced Institutefor Amsterdam (Amsterdam: Paper Working Barriers,” and Opportunities 65 (2009):305 64 2007),10. (Luxembourg, Security” and 63 security asthethirdincome element. being beca certainty that a becomes employed ensures which security, employment Second, legislation. protection employment Tros and Wilthagen of work flexibi each match Clasen and Viebrock strategy, this of side other the On environment. changing the to adapt should skills employee Finally, work. part time, over managing by fluctuations market meet to ability the requires flexibility the flexible more introducing and employees firing and hiring of ease the strategy. this of dimension both describe Clasen and Viebrock fl time, same the at enhance, to strategy “integrated the embraces model The Flexicurity’. of Principles Common ‘Towards titled communication, Commission 2007 a in highlighted further was approach flexicurity The and prudence fiscal include mostly that considerations macroeconomic by constrained are guidelines inclusion social and employment the of all goals quantitative expressed of number limited the to addition en and systems education inclusive build renewed this Under measures. policy hoc ad leavers, school early of number the reducing for push to urged were states member commitment, of patchwork a than rather system whole
European Commission, “Towards Common Principles of Flexicurity: More and Better Jobs through Flexibility Flexibility through Jobs Better and More Flexicurity: of Principles Common “Towards Commission, European le ibok n Jce Cae, Feiuiy n Wlae eom A Reform: Welfare and “Flexicurity Clasen, Jochen and Viebrock Elke
o Wlhgn n Fak rs “eln wt te ‘flexibility the with “Dealing Tros, Frank and Wilthagen Ton – 31.
adhering to the Stability and Growthadhering and tothe Stability Pact. Transfer: European Review of Labour and Research and Labour of Review European Transfer: Reform: AReview.”
exibility and security in the in security and exibility
.
65
is, hs nlds civn jb euiy y introducing by security job achieving includes this First, use of intensive training and education. Finally, they mention they Finally, education. and training intensive of use
ac gne eult wti the within equality gender hance 20
lity element with a security one based on based one security a with element lity
0 n. (04: 166 (2004): 2 no. 10,
labour - Security
64 Review,” Review,” market.”
First, under flexibility, they list list they flexibility, under First, - Nexus’: Institutions, Strategies, Strategies, Institutions, Nexus’: labour Socio 63 –
86; Viebrock and Clasen, Clasen, and Viebrock 86; In their review article article review their In - Economic Review Economic
labour contract
akt In market. s. Second, Second, s. dies, 2003); 2003); dies,
7, no. 2 2 no. 7, - time time the the CEU eTD Collection in Investment,” 70 69 68 State Welfare InvestmentSocial 67 Poland.” 66 investment: social as considered be assistance.employment and upskilling can ALMPs four the of out two Bonoli, to According S 1 pro capital and human in investment of dimensions the along ALMPs of types main four between distinguishes Bonoli re people jobless helping proactively by possible, as short as are spells (ALMPs). policies market life the Besides . Table: Four typesof active labour market policy ource: Bonoliource:
eiiin from Definition Ibid. Relationship.” A Changing Investment: Social and Policy Market Labour Bonoli, “Active Re Changing A Investment: Social and Policy Market Labour “Active Bonoli, Giuliano European “The Gwiazda,
Pro market employment orientation
Strong Weak Towards a Social Investment Welfare State? Ideas, Policies and Challenges and Policies Ideas, State? Welfare Investment Social a Towards ,
- Active Social Labour and MarketInvestment: Policy Relationship AChanging long learning element there is another cornerstone to flexicurity: active active flexicurity: to cornerstone another is there element learning long Jane Jenson, “Redesigning Citizenship Regimes after Neoliberalism. Moving towards Social Social towards Moving Neoliberalism. after Regimes Citizenship “Redesigning Jenson, Jane conditionality Benefit reductions; Benefit recipiency; on limits time benefits; in-work credits, Tax reinforcement Incentive benefits) (passive None - , ed. Nathalie Morel, Bruno Palier, and Joakim Palme (Bristol: Policy Press, 2012), 181. 2012),Press, (Bristol: Policy Palme Joakim and Palier, Bruno Morel, Nathalie , ed. market employment orientation, employment market as shown thefigurebelow. in ization of Flexicurity: The Lisbon Strategy’s Impact on Employment Policies in Italy and and Italy in Policies Employment on Impact Strategy’s Lisbon The Flexicurity: of ization
66
They can be loosely defined as “making sure that unemployment unemployment that sure “making as defined loosely be can They
69 Investment in human capital in human Investment
While social investment social While Job programmes search Counseling; subsidies; Job services; Placement assistance Employment programmestraining related employment non- sector; public the in schemes creation job Occupation Weak 21
70
is not explicitly called for in the the in for called explicitly not is , ed. Nathalie Morel, Nathalie ed. , - enter the labour market.” labour the enter training vocational related Job- Upskilling education) (basic Strong
lationship,” in lationship,” , 68
184 Bruno Palier, Palier, Bruno
Towards a a Towards labour
67
CEU eTD Collection 73 227. State Welfare Investment Social 72 71 [...]” participation market labour for support stressing childhoodeducation; early particularly education, on focused spending: social of patterns different or new bringing childhood, early and pay work making capital, human in investment and to increased implies this terms policy In outcomes. [...] fostering in role key a state 61 2012), Press, Policy (Bristol: Palme Joakim and for call the as well were cycle previous implementation.” on be will cycle new the of focus “the three second the launched Council European the 2008 In into throughThird, investinghumancapital heavily educa infrastructural and institutional the providing part learning, lifelong for background by enterprises and workers of imp Second, adaptability system. protection social the modernizing same the at while market increasing funct a is implementation whose goals policy main three are there that see we Council the by adapted 2005 the up, sum To job creation. investment social claim Stephens and Nelson analysis, quantitative on Based outcomes. employment and ALMPs between correlation positive innovation. and changes with up keep to resources nece the highlight does it flexicurity, on report Commission 2007
Moira Nelson and John D Stephens, “Do Social Investment Policies Produce More and Better Jobs,” in Jobs,” Better and More Produce Policies Investment Social “Do Stephens, D John and Nelson Moira 12. ofFlexicurity,” Principles Common “Towards EuropeanCommission, Council of the European Union, “Presidency Conclusions “Presidency EuropeanUnion, the of Council
o o te macro the of ion labour 72
upy n icniiig h pplto t etr n sa wti the within stay and enter to population the incentivizing and supply
a
largely unchanged. Most importantly the integr the importantly Most unchanged. largely move to a “knowledge a to move , ed. Nathalie Morel, Bruno Palier, and Joakim Palme (Bristol, Policy Press, 2012), 226 2012), Press, Policy (Bristol, Palme Joakim and Palier, Bruno Morel, Nathalie ed. , - 08 eid gas ae o te e itgae gieie ta were that guidelines integrated new the on based goals periods 2008 -
n mcocnmc udlns Frt rahn fl epomn via employment full reaching First, guidelines. microeconomic and - time positions, and closing the gender gap in employment. in gap gender the closing and positions, time – 62. - based economy” in order to create more and better and more create to order in economy” based
: policies are conductive for more and better quality better and more for conductive are policies „Proponents of the social investment perspective assign the the assign perspective investment social the of „Proponents 22
–
Brussels, 13/14 March 2008” (Brussels, 2008), 2 2008), (Brussels, 2008” March 13/14 Brussels, 71
Moreover, it was shown that there is a a is there that shown was it Moreover, tion. - year cycle of the Lisbon strategy with with strategy Lisbon the of cycle year 73
h ojcie ad me and objectives The
ssity of investing into human human into investing of ssity ated guidelines remained as remained guidelines ated
n o the of ans oig the roving Towards a a Towards labour .
–
CEU eTD Collection 76 201 Commission, European (Brussels: Commission the from Final),” Communication 75 74 for agenda “An thesis:this of subject the for important particularly are which two areThere well. poverty degree tertiary a have should generation younger the of 40% and 10% below be should leavers school early of First, policies; social decline.” gradual a to us wake a is crisis Commission to According Union. European the of life the post a mark to order in 2020 Europe by relieved was Strategy Lisbon the 2010 In definite take to states member the on called Council European the Conclusions Presidency the In jobs.
European Commission, “Europe 2020 A Strategy for Smart, Sustainable and Inclusive Growth (COM(2010) 2020 2020 (COM(2010) Growth Inclusive and Sustainable Smart, for Strategy A 2020 “Europe Commission, European Ibid.,10. Ibid.,5.
policies inordertopolicies cohesion” social enhance consiste policy improve ensure participation force labour overall higher promote training particularly adults, more attract or from background groups;migrant disadvantaged leavers school early of number “substantially . action on the following onthe action points:
76 , highlights are from me. from are , highlights
n add In active social inclusionactive social - up call, the moment where we recognize that "business as usual" would consign would usual" as "business that recognize we where moment the call, up
and further facilitate geographic and occupational geographic and facilitate mobility; further and to t tee agt te e srtg itoue svn lghp ntaie as initiatives flagship seven introduced strategy new the targets these to ition 75% of 75% reduce the number of young people who cannot read properly read cannot who people young of number the reduce ; third, (compared to 2010) 2010) to (compared third, ; 75
New headline targets were specified were targets headline New
the population aged 20 aged population the
c ad coordination and ncy ;
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20 million less people should be at risk of of risk at be should people less million 20 74
- 64 should be employed be should 64
f cnmc epomn ad social and employment economic, of President José Manuel Barroso, “the “the Barroso, Manuel José President
and tackle segmentation in order to order segmentationin tackle and in
the domain of employment and and employment of domain the 0),2.
- ; second, ; crisis agenda in in agenda crisis
and and the share CEU eTD Collection 78 2014 Fund EuropeanSocial 77 your Source 2 aspect. social the neglect not does it Semester the of focus fiscal the despite that argued Vanhercke and Zeitlin Moreover, States. Member individual the in goals 2020 Europe the achieving for process maki policy and rules economic harmonize to is goal main Semester’s European the push to attempt recent m most its as Semester European the introduced EU the 2011 In key of promotedareas theCommissio the new by work beneficial a creating to resu a pathway a to As and ratios employment higher to approach useful a as agenda the poverty.” on high remained against platform “European the and jobs” and skills new exlusion social or poverty at-risk-of-People attainment education Tertiary training and education from leavers Early rate Employment Selected targets . Table: The
Zeitlin and Van Zeitlinand uoen omsin “oad Sca Ivsmn fr rwh and Growth for Investment Social “Towards Commission, European ember ember - country/index_en.htm 78 :
uoe 00 n or onr, web: country, your in 2020 Europe s ae twrs ocre ato b ipeetn a ana plc cce Wie the While cycle. policy annual an implementing by action concerted towards tates
national targets for Hungary and Estonia hercke, hercke, Socializing the EuropeanSemester? the Socializing at risk of poverty or of exclusion poverty risk at 450.000 less people should be education level third complete should olds of 30-34–year- 30.3% least at 10% than less employed be to 20-64 aged % population of the 75 national targets Hungarian - 2020 (COM(2013) 83 Final),” Communication From The Commission (Brussels, 2013). (Brussels, Commission The From Communication Final),” 83 (COM(2013) 2020
- life balance. In addition to flexicurity social investment became one became investment social flexicurity to addition In balance. life
.
http://ec.europa.eu/europe2020/europe 24 exclusion or of poverty risk at be should people less 49.500 education level third complete should olds of 30-34–year- 40% least at age early an at school leave should of children 9.5% than less employed be to 20-64 aged % population of the 76 Estonian national targets n.
77
Cohesion Cohesion –
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CEU eTD Collection 2003 80 Hungary 79 despite enjoying battle Hungary Eurostat the by compiled data the by evidenced As 70%. reach to targeted was which rate, employment the was area this in target Lisbon key the of 2004 of period the in indicators key examine should we backdrop critical this Against StatesMember intereststate onstrong isinstitutions participating dependent and organization. co Sissenich of analysis insightful from participation of lack the by reinforced further their deferred but rules EU the of Member new other and Hungary notes, Sissenich As fashion. topdown ina down has gone policy Hungary within employment and The of social adoption EU 2004 Hungary
According to the Eurostat database, Hungary enjoyed an average of 3,48% real GDP growth in the period of of period the in growth GDP real 3,48% of average an enjoyed Hungary database, Eurostat the to According Sissenich, Sissenich, - 2007 (this period illustrated the run up to the EU accession and the year the and EUaccession toup therun the illustrated (thisperiod 2007 - 2008 .
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rgement and the Transfer of EU Social Policy to Poland and and Poland to Policy Social EU of Transfer the and rgement labour
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Government of Hungary and European Commission, “Joint Assessment of the Employment Policy Priorities of of Priorities Policy Employment the of Assessment “Joint Commission, European and Hungary of Government 2008 2007 2006 2005 2004 s a stark difference, given the above described employment problems. Furthermore, the the Furthermore, problems. employment described above the given difference, stark a s : Eurostat 81
Hungary training Employment rate, Employment
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CEU eTD Collection HAS,2004). Economics, of Institute (Budapest: Market Labour Hungarian 82 econom informal sizeable the and market, labour the in backwardness regional serious low for demand o Academy Hungarian the to According EurostatSource: Hungary and thein EU28, 2004 4 conditions thepositive association between and decline economicgrowthand inunemployment. the given sign alarming an considered be should it average EU the below f rate climbing steadily but slowly its with process this of example nice a is Unemployment worsening. or stagnating indicators social and employment with situation the of picture bleak rather a gives data This 15%. above to spike 2006 at Similarly, 11 the in stuck was leavers school early of share . Table: Unemployment rate ,Early leavers from education and at
áoy aea, Te urn Stain n h Lbu Mre ad aor M Labour and Market Labour the on Situation Current “The Fazekas, Károly 2008 2007 2006 2005 2004 Unemployment rate, total % Unemployment total rate, - risk of poverty levels were fluctuating between 12 between fluctuating were levels poverty of risk Hungary -
skilled workers and positions, the wide coverage of social assistance programs, programs, assistance social of coverage wide the positions, and workers skilled Labour - 7,8 7,4 7,5 7,2 6,1
Review and Analysis 2004 Analysis and Review f Sciences, there were four main factors for the low participation rate: low rate: participation low the for factors main four were there Sciences, f
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- 2008 7,2 8,2 9,3 7 9
educationand training,age Hungary
, ed. Károly Fazekas, Jenő Koltay, and Zsombor Cseres Zsombor and Koltay, Jenő Fazekas, Károly ed. , Early leavers Early from group18-24, % o 61 i 20 t 78 i 20. hl ti was this While 2008. in 7,8% to 2004 in 6,1% rom 11,7 11,4 12,5 12,5 12,6 27 -
12% range without any positive development. development. positive any without range 12% EU28 14,6 14,9 15,3 15,7 16 - 13,5% with with 13,5% Hungary At-risk-of-povertyrate, - Institute of Economics of the of Economics of Institute risk re Plc i Hnay” in Hungary,” in Policy arket - of 12,4 12,3 15,9 13,5 total, % total, n.a - poverty rate in favourable the exception of the of exception the EU28 16,6 16,5 16,5 16,4 n.a
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y. - Gergely Gergely 82
This This The The
CEU eTD Collection 2004 (NAP/incl) Inclusion Social 83 nursery places. non and Roma between education assistance. was this and positions, enough provide not did scheme work public the that fact the by exacerbated is process This Hungary. rural in economy informal the in participation observed researchers the where report another with corresponds factor final
Zsuzsa Ferge, “Report on the Regional and Local Implementation of the First Hungarian National Action Plan on on Plan Action National Hungarian First the of Implementation Local and Regional the on “Report Ferge, Zsuzsa 83
Further findings of the 2004 report include the persistent segregation in housing and and housing in segregation persistent the include report 2004 the of findings Further
- 2006,” Third Report of 2005, (2005). Report of2005, Third 2006,”
- oa aiis n te ak f nuh idratn and kindergarten enough of lack the and families Roma 28
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CEU eTD Collection 85 84 social assistance,regular as figure. demonstrated thebelow by In months. 9 move a were to there addition months 12 from reduced were benefit the for period maximum the where a in resulted which overhauled got system benefit unemployment the 2001 is additional administratthe Register creating that claiming criticism some were there Council mainly Reconciliation was Interest National it by supported While employment. informal reducing of aim the with Register Employment Hungary.” in administration Training and Development Labour County 20 Office, responsibl was PES the the Labour, and Employment of under Ministry 2002, In considerably. changed years the during and 1990 in up set was It well. as various the In body. tripartite Fund Market Labour the of Board Governing the by governed was employer and contributions employee and both by supported (LMF).Labour MarketIt Fund was fi main The
Fazekas, “The Current Situation on the Labour Market and Labour Market Policy in Hungary,” 32. in Hungary,” Policy Market Labour and Market theLabour on Situation “TheCurrent Fazekas, Fazekas, “The Current Situation on the Labour Market and Labour Market Policy in Hungary. Policy Market Labour and Market theLabour on Situation “TheCurrent Fazekas, labour nancial nancial
market policies the Public Employment Service (PES) is financed by the LMF the by financed is (PES) Service Employment Public the policies market instrument for financing active and passive labour market policies was policies market labour passive and active financing for instrument
away from insurance based unemployment benefits to means to benefits unemployment based insurance from away Centres Centres
84
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14 oa Lbu Ofcs n 2 Hmn Resource Human 20 and Offices Labour Local 134 , osiue h isiuinl rmwr o lbu market labour of framework institutional the constitute ive burden forive firms. 29
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Fazekas, “The Current Situation on the Labour Market and Labour Market Policy Policy Market Labour and Market theLabour on Situation “TheCurrent Fazekas, In the report, disadvantaged groups are identified as Roma minorities, disadvantaged young people and older older and people young disadvantaged minorities, Roma as identified are groups disadvantaged report, the In
Fazekas, , active active , atcpto in participation The Current Situation on the Labour onthe MarketThe Situation Labour Current Market Policy and inHungary labour 86
the government introduced the “job search incentive” and “job finding “job and incentive” search “job the introduced government the
market policies consisted of providing cash payments to people people to payments cash providing of consisted policies market utpe ALMP multiple
87
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the most disadvantaged groups were able were groups disadvantaged most the . The exact breakdown of the active active the of breakdown exact The .
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Mária Frey, “Changes in the Legal and Institutional Environment of the Labour Market,” in in Market,” Labour the of Environment Institutional and Legal the in “Changes Frey, Mária Institute of Economics of Institute disabilities -
Review and Analysis 2005 Analysis and Review s
are fromare me. dies for firms creating new tele work positions. According to the report compiled by by compiled report the to According positions. work tele new creating firms for dies . 88 The Current Situation on the Labour Market and Labour Market Policy in Hungary in PolicyMarket Labour and Market Labour the on Situation Current The
h rpr ietfe pol o prna lae s short a as leave parental on people identifies report The
, ed. Károly Fazekas and Júlia Varg Júlia and Fazekas Károly , ed. , the main advantages of such non such of advantages main the ,
ra rcie ngiil ifo o persons. of inflow negligible received areas 31 sitions. This finding corresponds with research research with corresponds finding This sitions.
a (Budapest: Institute of Economics, HAS, 2005). HAS, Economics, of Institute (Budapest: a - standard working arrangement are arrangement working standard
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CEU eTD Collection 2006),222. Market 92 HAS,2008). Economics, Instituteof Market 91 leave. paid isextended Gyet benefit and based 90 (2014):382 Hungary,” in Marginalisation Economic Women’s and Leave Parental Benefit,” 89 Extra Start the Second, contributions. statutory payable the covering partly by employers for subsidy Star the first, twofold: was expansion The 2007. Fund in Social European the from funding additional years. 2 for contributions) who education, youth from the exiting targeted that program Start the was period the of initiatives main new the of One characteristicsobservable Gyes after „returning c child after market labour the to returning when face advice. employees Hungarian that problem policy OECD of face the in even changes substantial any bring to reluctant suppor family the excludes that claiming
s Mária Frey, “Changes in the Legal and Institutional Environment of the Labour Market,” in in Market,” Labour the of Environment Institutional and Legal the in “Changes Frey, Mária suppor family Hungarian the Within Mónika Bálint and János Köllő, “The Labour Labour “The Köllő, János and Bálint Mónika ee, ee, t Plus was aimed for people returning to the labour market from child care. It provided a provided It care. child from market labour the to returning people for aimed was Plus t ge Szabó Ágnes was - -
Review and Analysis 2006 Analysis and Review eiw n Aayi 2008 Analysis and Review CERGEI
– women out of the of out women
98. geared towards those who return to the labour market from lo from market labour the to return who those towards geared
although - - EI Morvai, “Who Benefits from Child Benefits? The Labor Supply Effects of Maternal Cash Cash Maternal of Effects Supply Labor The Benefits? Child from Benefits “Who Morvai, t system is a legacy from the Kádár system and subsequent administrations are are administrations subsequent and system Kádár the from legacy a is system t , 2013, and Eva Fodor and Erika Kispeter, “Making the ‘reserve Army’invisible: Lengthy Lengthy Army’invisible: ‘reserve the “Making Kispeter, Erika and Fodor Eva and 2013, , 90
lavish child care support might seem to be a positive policy in reality it reality in policy positive a be to seem might support care child lavish [they] receive significantly lower wages than other workers with similar similar with workers other than wages lower significantly receive [they] .
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91 e. áoy aea ad eő oty Bdps: nttt o Economics, of Institute (Budapest: Koltay Jenő and Fazekas Károly ed. , 92 e. áoy aea, smo Cseres Zsombor Fazekas, Károly ed. ,
labour se employers were eligible for a subsidy (in the form of reduced reduced of form the (in subsidy a for eligible were employers se
After the introduction the Start program it got expanded with with expanded got it program Start the introduction the After
t policy nomenclature nomenclature policy t
market.
Supply Effects of Maternity Benefits,” in in Benefits,” Maternity of Effects Supply 89
M 32 oreover, Bálint and Köllő and Bálint oreover,
Gyes is the flat rate benefit, while Gyed is insurance insurance is Gyed while benefit, rate flat the is Gyes European Journal of Women’s Studies Women’s of Journal European - Gergely, and Ágota Scharle (Budapest: (Budapest: Scharle Ágota and Gergely, ng
points to the fact that that fact the to points - term unemployment unemployment term The Hungarian Labour Labour Hungarian The The Hungarian Labour The Hungarian
Another 21, no. 4 4 no. 21, are that are
HAS, HAS, CEU eTD Collection 95 146 HAS,2008), ofEconomics, Institute (Budapest: Scharle Ágota in 2007,” 94 2007). Market 93 sophisticated skill maintenance infrastructure community were positions the of most and lapsed. subsidies the fractio a only environment harmful and “ are workers public that shows Frey employment. further on effects insignificant has worst at and controversial best at labour active main the is work Public relevant. not was training the where positions found participants 2001 of period the 50%in above went never theprograms leaving people ratesof finding job the since ineffective largely is training that finds She entrants. young of support and subsidy wage work, Hungary: in ALMPs main four identifies Frey evaluation, her In subsidizesfully the employers’ contributions theLabourMarket Fund. via it Programme, Start the of concept core the to Similarly areas. deprived in living or age to due
Ibid.,148. ái Fe, Eauto o Atv Lbu Mre Porme bten 2001 between Programmes Market Labour Active of “Evaluation Frey, Mária Mária Frey, “Legal and Institutional Environment of the Hungarian Labour Market,” in in Market,” Labour Hungarian the of Environment Institutional and “Legal Frey, Mária -
2005.
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market policy both in terms of funding and participation. Despite its Despite participation. and funding of terms in both policy market Review and Analysis 2007 Analysis and Review The Hungarian Labour Market Labour Hungarian The
94
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95
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e. áoy aea ad áo Kzi ( Kézdi Gábor and Fazekas Károly ed. ,
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Review and Analysis 2008 Analysis and Review n of them continue their work in the same position after position same the in work their continue them of n 33
, ed. K ed. , – 152. ároly Fazekas, Zsombor Cseres Zsombor Fazekas, ároly
Budapest: Institute of Economics, HAS, HAS, Economics, of Institute Budapest: ” and in addition to this fragile fragile this to addition in and ”
labour market training, public public training, market labour – 2006 and the Main Changes in in Changes Main the and 2006 wih i nt require not did which , 93
weight The Hungarian Labour Labour Hungarian The ,
its effects are are effectsits - - fifth of the the of fifth Gergely, and and Gergely, CEU eTD Collection 96 emplo further for opportunity real no gave employment, term short providing while which, programme work public the for true particularly is This efficiency. in or funding in either insufficient, were they did government the while Lisbon and Agenda the with contrast stark in is data statistical The GDP. the of 1% below were funding active the while unemployment, increasing gradually and persons) old and In portfolio, issues, social overseecertain and protection. such aswelfare child child w Office Social and Employment the change this to addition In offices. level county previous the of place job regional new and change organizational an underwent Service diffi actual the of instead Register the from skilled best the pick cherry employers letting by unemployed disadvantaged already the of disadvantage relative the increasing to contributed it hiring enhance did subsidies wage While 149 Source: employment (%) 3 . Figure The. Figure distribution public of workers according to types of activities
Ibid.,150. conclusion, within within conclusion, , highlights are from me Frey, s rae ta ws akd y aaig h nw tutrs n, n diin o their to addition in and, structures new the managing by tasked was that created as
Evaluation of Active Labour Market Programmes between 2001 between ProgrammesMarket Labour Active of Evaluation yment once subsidies run out. In their article, Inglot article, their In out. run subsidies once yment
this period Hungary struggled with low employment ratios ( ratios employment low with struggled Hungary period this .
cult - push to - lc tre group. target place
policies aimed at employment and social investment social and employment at aimed policies 34
n 07 h Pbi Employment Public the 2007 In – 2006 and the Main Changes in 2007 in Changes Main the and 2006 centres Szikra and Rat and Szikra and rate continuedof
labour eecetn n the in creating were
96
market policy market
tota looks at the the at looks l , female , , CEU eTD Collection 97 theafter 34,1%2014 at in stood that attainment thetertiary of increase thesteadyis development positive Another 41,7%. to 30,9% from growing period, year 6 the over improvements serious of worker rateofolder theemployment other handhowever, the On little tonoeffect. with market labour to back population female the bringing of mentions numerous were there meaningf any bring to struggling is employment female promoting framework institutional and policy the that signals This 2014. in 46% to 45,6% 2008 the from climbed it since change no to little were there it directly rate employment female include theEU2020 targets donot While 2020. by of rate 75%employment target 2020 mind theEurope in keeping with especially boom, dynamic a years 6 over gain 4,4% a call to overstatement an 20 aged population the in rate employment total the with observed be can trend similar A 2014. in 67,4% to 2008 slow its started rate activity the period second the In 2008 subsequently re the2005 in not did EU, Hungary the from coordination policy and funding additional Service, and Employment Register centralized Public a the creating reworking system, Ministerial the in changes the Despite duetopolitical infighting. partly action Hunga subsequent the goals main were poverty of eradication and equality gender while that and period the in policies family
Inglot, Szikra, and Raţ, “Reforming Post “Reforming Raţ, and Inglot,Szikra, - 2014: Crisis 2014: and l eut. hs s osset ih h aayi o te rvos ie eid where period time previous the of analysis the with consistent is This results. ul
aae o eie o te ol fraie i te ibn gna n then and Agenda Lisbon the in formalized goals the on deliver to manage - 64: the indicator increased from 62,3% in 2008 to 2008 in 62,3% from increased theindicator 64: its its
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Communist Welfare States.” Welfare Communist 97
should be noted that that in the period in question in period the in that that noted be should 35
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34,1 32,3 29,8 28,2 26,1 24 30-34 - year term of a crisis a of term year - 2014 EU28 rget ofleast10%. at
37,9 37,1 34,8 33,8 32,3 36 educationand training, Hungary Early leavers Early from agegroup 18-24 11,4 11,9 11,8 11,4 10,8 11,5 - managing government. This added severe political severe added This government. managing 36 - mic crisis a political crisis unfolded at the time, the at unfolded crisis political a crisis mic 34. Unfortunately the same cannot be observed be cannot same the Unfortunately 34.
EU28 t t E22 ga o 3,% o tertiary for 30,4% of goal EU2020 its et 11,1 11,9 12,6 13,4 13,9 14,2 Employment rateof theEmployment Hungary total population, agetotal nto the European sovereign debt sovereign European the nto group20-64 66,7 61,6 60,4 59,9 60,1 63 EU28 69,2 68,4 68,4 68,6 68,6 68,9 n
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CEU eTD Collection 2015) in 102 101 ended http://en.wikipedia.org/w/index.php?title=Elections_in_Hungary&oldid=655398921. supermajority 2010 2008, 1 May 2006 100 99 Trilemma,” 98 2008 the of evaluation EU an cites micro with Region Start named 2009 from started initiative new a as well as strategy the in included got Extra Start and Plus Start Start, the period, previous the From mind. in approach flexicurity the with agenda its set clearly government Hungarian as the measures in national shown with them matches and approach flexicurity the of legs four identifies age and duration employment the tightening at aimed and 2008 and 2007 during in phased was increase gradual This people. older the of rates employment and activity the both in raises to contributed and employees older respectively. at women, aimed Extra, Start and Plus Start extensions, mentioned already its 2008 of period the for Employment government Hungarian the 2008 In work, to incentives strong creating sorts, various positionsstrengthening employer more relations turninggenerally flexible.” and industrial of transfers social “severing started well. as priorities spending the management. crisis of effort main the of in an For Ibid.,21.
h gvrmna cce uig hs pros s h floig 2002 following: the is periods these during cycle governmental The “National Action Programme for Growth and Employment Employment and Growth for Programme Action “National “National Strategy Report on Social Protection and Social Inclusion 2008 Inclusion Social and Protection Social Report on Strategy “National - 2010: Socialist 2010: - regions. - - r
depth analysis of the pe the of analysis depth ltd odtos o eiig s el s rmtn ltr eieet Te document The retirement. later promoting as well as retiring to conditions elated Südosteuropa Mitteilungen Südosteuropa 102 table -
- 04 Fidesz 2014 However, in the comprehensive report on the Hungarian Labour Market, Frey Frey Market, Labour Hungarian the on report comprehensive the in However, Social Democrat coalition, with the Social Democratic party breaking off the off breaking party Democratic Social the with coalition, Democrat Social
n h anx Ti tbe lal sos ht n h lvl f dis of level the on that shows clearly table This annex. the in 101
h NP hi NAP The
- DP uemjrt, 2014 supermajority, KDNP , no. 03 , no. riod see: see: riod
s sb nts fcd ih fiscal with faced notes, Csaba As – 100 04 (2013):154 04 - László Csaba, “Growth, Crisis Management and the EU: The Hungarian Hungarian The EU: the and Management Crisis “Growth, Csaba, László
2010. -
2010 National Reform Programme as lacking a coherent coherent a lacking as Programme Reform National 2010 ghlights that the gradual increase of the retirement age age retirement the of increase gradual the that ghlights prepared the prepared 98
This austerity not only impacted the budget deficit but but deficit budget the impacted only not austerity This Its
“Elections in Hungary,” Hungary,” in “Elections main elements remained the Start Programme and and Programme Start the remained elements main 37 – 69.
National Action Programme for Growth and and Growth for Programme Action National -
- the goal of reaching the most disadvantaged disadvantaged most the reaching of goal the
Fidesz 2008 - 2010,” 2008. 2010,” - KDNP supermajority (the ruling coalitions coalitions ruling (the supermajority KDNP - 06 Socialist 2006: - 2010,” 2008. 2010,” constraints the government government the constraints
last accessed: 05/24/2015 last accessed: -
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99
CEU eTD Collection 198. HAS,2010), Economics, Market 103 policy: andsocial market t c the by exacerbated been had rates employment 2008 NAP the in outlined not measures forward put to government Hungarian the required crisis financial the of backlashes the Facing people. older employm its increase to managed Hungary proposals Commission the to response be to needs effectiveness their but improved.” place, in are programmes market labour active Many evident. not is strategy flexicurity integrated an of existence “the that fact the out points Frey Annex) the (see Hungary by forward put approach flexicurity the to relation In strategy. Lisbon ow political missing and strategy o meet the 2008 IMF criteria the government made the following measures relating tothe made measures thegovernment relating thefollowing theIMFcriteria 2008 o meet
Mária Frey, “The Legal and Institutional Environment of the Hungarian Labour Market,” in in Market,” Labour Hungarian the of Environment Institutional and Legal “The Frey, Mária
-
Review and Anal and Review Freez allowancefamily Taxing the (from leave Reduced parental 3yearsto2years) Lowering sick pay by by sickLowering pay 10 percentagepoint retirementage Rising gradually to65years the13 Eliminating from 23to20years
103
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Nonetheless, by curbing early retirement and increasing the retirement age as a a as age retirement the increasing and retirement early curbing by Nonetheless, ysis 2010 ysis
th
month pension , ed. Károly Fazekas, Anna Lovász, and Álmos Telegdy (Budapest: Institute of of Institute (Budapest: Telegdy Álmos and Lovász, Anna Fazekas, Károly ed. ,
esi, hc rsls n rte tcncl prah o the to approach technical rather a in results which nership,
-
2010. The prevailing problems of low activity and and activity low of problems prevailing The 2010. 38
risis.
In her report, Frey highlights that in order order in that highlights Frey report, her In
The Hungarian LabourThe Hungarian n rto of ratio ent labour
CEU eTD Collection 106 105 104 unemployment of further aim themain of had in2011 adopted Labour Code The new benefits further were curbed. amount and length the reforms Hartz German the of path the Following we government in change the and 2010 From to available resources the in increase large a for municipalities public works schemes.” entailed but predecessors, its from much ineffi were they that showed schemes work public Hungarian of study case a development, this to addition In increased. municipalities’ the concert in while rapidly declined organizing work public in PES the into Social Regular receive to guided was and work to capable were who people of continued up made was group second The Assistance. who people disadvantaged severely with dealing was two into divided was It Work’. to ‘Pathway 2009, 1 January in introduced was scheme new a problem activity and employment the combat Forints. of Service billion adapted budget 17.9 Employment schemes, a jobprotection from Foundation Employment National the and Labour and Affairs Social of Ministry the this, to addition In employers. the preferring flexible, more limit time working and overtime of Cod amendments Labour new The crisis. the by prompted were that changes policy of list Frey a report, compiles Market Labour Hungarian the in chapter exhaustive and comprehensive the In cuts the counterbalance To
Frey, “The Legal and Institutional Environment of the Hungarian Labour Market.” Labour oftheHungarian Institutional Environment and “TheLegal Frey, Ibid.,181 Ágota
Scharle, “The Efficiency of Municipal Public Works Programmes” (Budapest: Budapest Institute, 2011),2. Institute, Budapest (Budapest: Programmes” Works Public ofMunicipal Efficiency “The Scharle, labour – cient in creating employment and “the new scheme introduced in 2009 did not differ differ not did 2009 in introduced scheme new “the and employment creating in cient 223. e, introduced in 2009, were creating a more flexible labour market by making both making by market labour flexible more a creating were 2009, in introduced e,
market or public work public or market
decision were made to extend the nu the extend to made were decision
scheme. 106
parts 105 39
Along with this new scheme the importance of of importance the scheme new this with Along
, each t each , a osre cag i plc directions. policy in change a observe can argeting a different segment. The first The segment. different a argeting rsery and kindergarten network. kindergarten and rsery
and the Public Public the and 104
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CEU eTD Collection 2014,” and between2010 Hungary 108 290 (Budapest: Telegdy Álmos and Benczúr, Péter Fazekas, in 2012,” August and 2011 September between 107 rates. participating increasing with schemes work public on were ALMPs of focus the that meant This funding. t In agreementsindividual widened as well number as a of measures: flexicurity labour Hungarian the liberalizing
Irén Busch, Irén Dorottya Szikra, “Democracy and Welfare in Hard Times: The Social Policy of the Orban Government in in Government Orban the of Policy Social The Times: Hard in Welfare and “Democracy Szikra, Dorottya – erms of ALMPs, a new, extended public work scheme was introduced in 2011 with increased with 2011 in introduced was scheme work public extended new, a ALMPs, of erms 293.
public work scheme. public upon dependent largely is system assistant social the in participation (nominally). 20 to15%ofwage theaverage from insurance), unemployment expired (after assistance social of amount the reducing Maximum the bargaining upto300hours.compulsory can extended overtime be collective with and time working adjust flexibly more can employers without thecontract terminate justification emplo and employers the both where period probationary the of extension the quantitiesit is to easier of change labour
Zsombor Cseres Zsombor
duration
- of unemployment insuranceof reduced unemployment from 9months Gergely, and László Neumann, “Institutional Environment of the Labour Market Market Labour the of Environment “Institutional Neumann, László and Gergely, 108 Journal of European Social Policy Social of European Journal
market. With the introduction of the new Code, the scope for for scope the Code, new the of introduction the With market. The Hungarian Labour Market Market Labour Hungarian The 40
Centre for Economic and Regional Studies, HAS, 2013), 2013), HAS, Studies, Regional and Economic for Centre
24, no.(Decembe 5 107
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Review and Analysis 2013 Analysis and Review r 1, 2014): 486 1, 2014): r
enrolment to 3 – 500.
months
, ed. Károly Károly ed. ,
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CEU eTD Collection 110 2013). Market Labour Hungarian 109 implementation concepts One ofthe key often didnotsucceed. show case Hungarian The Main findings signs trend. reversal ofinthat any no are there and 2004 since country the in declining been has spending Education education. Anothe made the in scheme work public large a putting to addition In public punitive a with policies market labour active of replacement total Germany], in reform Hartz the [from reforms, the Characterizing Source: 4 . Figure: Employment in the
Zsombor Cseres Zsombor Szi kra, “Democracy and Welfare in Hard Times,” 412. in Hard Welfare and “Democracy kra,
r key element is missing in Hungary that is central to a successful flexicurity approach: approach: flexicurity successful a to central is that Hungary in missing is element key r Cser es - Gergely, Kátay, and Szörfi, Kátay, and Gergely, -
Gergely, Gábor Kátay, and Béla Szörfi, “The Hungarian Labour Market in 2011 in Market Labour Hungarian “The Szörfi, Béla and Kátay, Gábor Gergely, -
Review and Analysis 2013 Analysis and Review
s that while official policy documents were receptive to the EU’s EU’s the to receptive were documents policy official while that s Szikra assess Szikra public sector in Hungary, 2006
however, due to the inordinate scale of cuts, the nearly nearly the cuts, of scale inordinate the to due however,
that The Hungarian Labour Market2011 in The Hungarian
Bdps: ete f Centre (Budapest: “ 41
post
- 2010 Hungarian reforms have been distinct been have reforms Hungarian 2010 centre - or Economic and Regional Studies, HAS, HAS, Studies, Regional and Economic or 2012 examples
of the ALMPs the government government the ALMPs the of
is the persistent is the decline works programme works – 2012 , 24 – 2012,” in 2012,” 109
.” The The 110
CEU eTD Collection non the of advantage took and advice EU the follow substantively to reluctant were governments the F problems. these tackling of incapable are Resources Human the of Ministry and the and Service policies Employment Public socialthe as such inclusive institutions develop to unable were governments successive that sign social while at increases growth that economic and spending is policies social inefficient of indicator Another marginal. is employment long have to capacity their but period observed the the throughout in mix ALMP present been had programs These scheme. work the public a Moreover, of result reallocation. a were budgetary ratio employment of and unemployment as source such indicators, a market labour the rather in improvements but priority, a as sector the 2004 the over that signals clearly which spending education in - binding nature of the OMC by ignoring actual nature byignoring oftheOMC binding flexicurity investmentsocial and proposals.
urthermore, from the new laws and policies it seems that seems it policies and laws new the from urthermore, - risk 42 - of
- poverty is poverty - 2014 period governments did vi governmentsdid period 2014 increasing as well. This is a clear clear a is This well. as increasing - term effects on re on effects term Hungarian
ew - CEU eTD Collection 114 Europe.” East Central toFlows 113 112 to Policy Social of System Universal “From C The Particularistic? Aidukaite, Jolanta Economy”; Market Liberal a in Crisis and Growth Communism over Capitalism of Victory the Djankov, and Aslund Europe”; Central East to Flows FDI Shaping in EU the of Role 111 peri 20 group the age the In of rate employment performance. strong a shows case Estonian the regard this In people. older of rate employment 50% and rate employment female 60% rate, employment total 70% are that targets, strategy Lisbon the were period this in EU the by set targets main The 2004 benefit privatizationthe added process of theradical theplace.” “clearing Re the was makers policy Estonian for inspiration main independence. cherish and identity national new a create to had Estonia where process more Medve a and Greskovits and Bohle into both As transition the is model th in present was Estonian that system universalist the from the policy social particularistic of features salient most the of One saf social minimal and arrangements market labour flexible privatization, scale large with policies market liberal pursue to dedicated is that States Member new the of one as regarded been has Estonia Estonia see: analysis, depth in more a For Bohle and Greskovits, Greskovits, and Bohle to Particul Policy ofSocial System Universal “From Aidukaite, Aslund and Djankov, Djankov, Aslundand - 2008 ety net as part of a small state. This intention is widely documented in the literature. the in documented widely is intention This state. small a of part as net ety
– Policy and institutional environment institutional Policy and
incremental changes toward a new, more social system social more new, a toward changes incremental ase of the Baltic States,” Baltic ofthe ase The Great Rebirth: Lessons from the Victory of Capitalism overCommunism Capitalism of Victory the Lessons from Rebirth: The Great Capitalis
t Diversity onPeriphery Europe’s Diversity t Bohle and Greskovits, and Bohle
; Feldmann, “Varieties of Capitalism and the Estonian Economy: Institutions, Institutions, Economy: Estonian the and Capitalism of “Varieties Feldmann, ; Communist and Post and Communist - 64 grew continuously from 70,3% in 2004 to its peak at at peak its to 2004 in 70,3% from continuously grew 64 - Bálint 43 Capitalist Diversity on Europe’s Periphery on Europe’s Diversity Capitalist
point out this is a result of a nation building building nation a of result a is this out point ; Medve ; - Communist Studies Communist aristic? The Case of the Baltic States.” Baltic ofthe Case The aristic?
agan and Thatcher administrations with with administrations Thatcher and agan - Bálint, “The Role of the EU in Shaping FDI Shaping in EU the of Role “The Bálint,
36, no. 4 (2003): 405 (2003): 4 no. 36, 114 The Great Rebirth: Lesson Rebirth: The Great
, 79. d n usin the question in od e Soviet Union. Soviet e
; Medve ; –
26. - Bálint,“The
113
s from The The
112 111
CEU eTD Collection 2007). Eesti April Pank, Office, 115 2004 from 19,7% to 20,2% 2 of 0,28 around with EU the in lowest policies market labour on expenditure government The policies. market labour Esto the section, introductory the in described agenda enjoyed market labour While Source EU28,and 2004 6 period. the in growth fellfrom itsUnemployment topointin2007. 10,1% the4,6%low 2004 economic robust the to tied closely is unemployment, decreasing P Eesti the of report the Market to According Labour 2008. by 62,3% to climbed and 2004 in 53% at stood people older of rate employment the as country the by met also was target third The 2004. in 67,3% point starting 200 by target Lisbon 60% the above well growing with trajectory similar a displays group age same the of rate employment female The 2008. in 77,1% . Table: Unemploymen
Diana Tur, Natalja Viilmann, and Andres Saarniit, “Labour Market Review 2007/1” (Tallin: Economic Policy Policy Economic (Tallin: 2007/1” Review Market “Labour Saarniit, Andres and Viilmann, Natalja Tur, Diana 2008 2007 2006 2005 2004 - ,% Frhroe te share the Furthermore, 1,6%. : Eurostat Unemployment rate, total % Unemployment total rate, Estonia - 2008
10,1 5,5 4,6 5,9 8
t, t, employment rates bysex age and group and total employment, Estonia EU28
- 7,2 8,2 9,3 2008. The dedication of the government to pursue (neo)liberal (neo)liberal pursue to government the of dedication The 2008. favourable
7 9 Femalerate,employment Estonia - 0,15% of the GDP. This figure is well below the EU average EU the below well is figure This GDP. the of 0,15% f h pplto at population the of 72,9 72,6 72,5 69,7 67,3 n tee aor akt niaos aogie ih the with alongside indicators, market labour these ank
developments its must be noted that in line with the with line in that noted be must its developments % EU28 4 4
62,8 62,1 61,1 59,4 60 Employment rateof Employment older 8. It peaked in 2008 at 72,3% from the from 72,3% at 2008 in peaked It 8. in oenet i nt olw active follow not did government nian Estonia - risk 62,3 59,9 58,4 55,7 - people 53 oet hs lcutd between fluctuated has poverty EU28
45,5 44,5 43,3 42,2 40,6 Employment rate, total total rate, Employment Estonia was 77,1 76,9 75,9 70,3
72 % among the among EU28 70,3 69,8 68,9 67,9 67,4 115
CEU eTD Collection 2005 Pla Action Estonian The arrangements. institutional domestic the and proposals targets, EU the by shaped were policies employment and social how the examine and government Estonian the goalsof policy declared the to turnshould data we the examining After Source EstoniaGDP, and EU28, 2004 7 14%in2008. reached this Despite high 2009. relatively in 7,1% at peaking 6%, exceeded education on expenditure government ofshare the 2007 dip in a of exception the funding.With EU above received education spending, fact decisive a not was flexicurity the of aspect security the period given the in 2004 during the to similarly that, protection social on expenditure government total the in reflected again once is policies . Table: LMP expenditure, government expenditure oneducation and on social protection, of% 2008 2007 2006 2005 2004 – 2007 calls for the strengthening of active labour market policies in order to efficiently reach to efficiently marketinorder policies labour of active for calls 2007 thestrengthening : Eurostat - 2008 and even declining in the wake of the crisis. While from the data it seems that that seems it data the from While crisis. the of wake the in declining even and 2008 LMP expenditure, % of Estonia - level funding the share of early school early of share the funding level
LMP spending, lags behind EU average and stayed in the near vicinity of 10% of vicinity near the in stayed and average EU behind lags spending, LMP
0,234 0,280 0,149 0,152 0,187
GDP EU28 - 2008 1,601 1,591 1,809 2,014 n.a
Government expenditure on education, % of GDP Estonia 45 6,7 5,9 6,0 6,0 6,3
leavers did not drop below 13% and even and 13% below drop not did leavers EU28 5,2 5,1 5,2 5,2 5,2 social protection, % of GDP Government expenditure on Estonia fr rwh n Jobs and Growth for n 11,6 10,2 9,3 9,4 9,8 or in government in or EU28 18,0 17,5 17,9 18,2 18,3
CEU eTD Collection 20 Inclusion, inSocial Assessment 118 117 116 possibility for toapply the provides Act the services market labour the addition In not consideration. did fiscal much implementation receive its that seems it plan Action National the and EU the by proposed subsidies. wage and guidance career training, business work), public (temporary placement community training, based work including Act, the in offered services market labour 13 of total client create to and population working the of rate employment possible highest the achieving were priorities main Its 2006. January 1 on force r were goals These policies. more flexibleFurthermore, unemployment to combat social and market labour integrating monitoring, increased groups, risk for services this counter to policies market thes Among phenomenon. labour active targeted proposes and structural inherently increasing and vocationa to regards special with system groups. risk different
The Jobs and 2005 Growth for Plan “Action Mare Viies, “Trends, Recent Developments, Active Inclusion and Minimum Resources,” Peer Review and and Review Peer Resources,” Minimum and Inclusion Active Developments, Recent “Trends, Viies, Mare
measures on the labour market and employment cited in this paragraph are detailed in detailed are paragraph thisin employment cited and market labour on the measures at least180days, at for work with equalized activity other or work with employed been have unemployed as registration to prior months 12 during who people are benefit market labour to “Entitled enrolment eflected in the in eflected 116 three different employment three benefits:
The Action Plan outlines measures aiming to strengthen the education education the strengthen to aiming measures outlines Plan Action The
e policies, the Action Plan names development of new labour market labour new of development names Plan Action the policies, e ratios. 06, 12
– Labour Market Services and Benefits Act Benefits and Services Market Labour 13. 117 - 2007” (Tallin, 2005), 41. 2005), (Tallin, 2007”
The document identifies unemployment in Estonia as as Estonia in unemployment identifies document The l training and decreasing drop decreasing and training l 118 - friendly labour market supply servic supply market labour friendly
46 start Whil
- e this non this e up labour
subsidies, job mediation, labour market market labour mediation, job subsidies,
market ismarket needed. - exhaustive list tackles the actions actions the tackles list exhaustive - out rates in all age groups age all in rates out , which entered into entered which , Ibid.,43
es. There are a a are There es. – 53.
CEU eTD Collection Journal Research & Economics Business 121 120 119 ALMP and approach flexicurity the towards taken steps were there that seems It them. of use efficient more a for call they but expanding are policies market labour the Fund start domains main two highlights Randveer and Kerem market labour Estonian the of assessment their In rather thanthestate institutions. job active labour views still makers policy and government active the to dedication and services of list long the despite that Estonia. in policy social of approach particularistic emerging unemp job it requires that is Act Benefits Employment and Services Market Labour new the of feature Another the showcases This
Aidukaite, “From Universal System of Social Policy to Particularistic? The Case of the Baltic States.” Baltic ofthe Case The to Particularistic? Policy ofSocial System Universal “From Aidukaite, Ibid.,13. Ka -
ie Kerem and Mare Randveer, “Assessment Of The Estonian Labor Market Development,” Development,” Market Labor Estonian The Of “Assessment Randveer, Mare and Kerem ie ups oe. hs s frhr etmn t te idns f iuat wo mhszs the emphasizes who Aidukaite of findings the to testament further a is This loyed. rvl n acmoain eeis r pi t te nmlyd h priiae in participate who orin training training.”employment practical unemployed the to paid are benefits accommodation and Travel training orworkduringtraining exercises 40hours, u the to paid are Grants
. 121 fo
atv lbu mre plce: riig rgas n cs alwne o business for allowance cash and programs training policies: market labour active r While they note that due to availability of EU funding through the European Social Social European the through funding EU of availability to due that note they While - seekers to draw up an individual action plan upon registering themselves as as themselves registering upon plan action individual an up draw to seekers conditionality of employment benefits on the use of employment services. employment of use the on benefits employment of conditionality
7, no. 2 (2008). 2 7, no.
nemployed who participate in employment training, practical practical training, employment in participate who nemployed
47
- searching the responsibility of the individual, individual, the of responsibility the searching 119
120
This stipulation in the Act shows shows Act the in stipulation This akt oiis the policies market s (for instance the the instance (for s
International International CEU eTD Collection 125 Djankov, 124 11 Countries: 2007). Macmillan, Transition in Privatization of Speed in Later,” and Years Law Conditions, Initial “Growth, Godoy, Sergio po respective their and concepts various the on details more For critiques. 123 Studies Economic 122 cont and 2007 in started that unemployment 2014. in 7,4% reaching sub in resulted which t stable and paced fast rather a by followed was peak This low 2007 the from unemployment of explosion the crisis. was change the of midst the in even average EU the above were indicators the average EU the in change the than the bigger was change negative While of amount year. following the in Female 69% to 72,9% rates. of value employment peak 2008 people its from fell older employment and female in changes corresponding with 2009 in downturns severe rates. unemployment and employment experienced country the 2008 in EU the hit that crisis financial global Esto Since 2008 minimal“ALMPs a roleinfacilitating workers’ played employment.” them on expenditure marginal the to due Égert and Brixova to according but legislation) 2006 its by theraphy’ ’shock as termed often is approach this tranformation regions the with dealing literature the In
o a eald con o plc mkr nie vnae on se h crepnig hpe in: chapter corresponding the see point vantage insider maker policy of account detailed a For With the sole exception in the year 2010 when total employment rate dipped slightly below the EUaverage. the below slightly dipped rate when 2010 total employment year in the exception theWithsole Zuzana Brixiova and Balázs Égert, “Labour Market Reforms and Outcomes Outcomes and Reforms Market “Labour Égert, Balázs and Brixiova Zuzana - 2014 2014 The Great Rebirth: Lessons from the Victory of Capitalism over Communism over Capitalism of Victory the from Lessons Rebirth: GreatThe nian policy makers fully embraced the idea that radical reforms radical that idea the embraced fully makers policy nian Institutional and policy environment policy Institutional and
Transition and beyo and Transition 54, no. 1 (2012): no. 54, 4.
- U vrg o 1% nmlyet n 00 n wt frhr decline further with and 2010 in unemployment 10% of average EU On the other hand, a World Bank study highlights the rise in long in rise the highlights study Bank World a hand, other the On
nd , ed. Saul Estrin, Grzegorz W Kolodko, and Milica Uvalic (Palgrave (Palgrave Uvalic Milica and Kolodko, W Grzegorz Estrin, Saul ed. , 124
Total employment rate dropped by 7% point to point 7% by dropped rate employment Total inued due to the crisis. The researchers show that that show researchers The crisis. the to due inued 48
after the crisis the after rend of reduction in unemployment in reduction of rend licy mixes see: mixes licy - point of 4,6% to 16,7% in 2010. in 16,7% to 4,6% of point 122
.
in Estonia,” Estonia,” in 125
Joseph E. Stiglitz and and Stiglitz E. Joseph 123
The most dramatic dramatic most The
three employment three in the face of the the of face the in Comparative Comparative Aslund and and Aslund
70% in in 70%
- term term CEU eTD Collection 14/112 No. Report Country IMF Estonia,” Of Republic The Inte DC: (Washington, For Director Executive The By Statement 129 are consultations The needed. ( as between in I discussions "Article as with known countries, member individual with consultations 128 7, no. Management,” Crisis of Consequences “Unintended Csaba, Reform,” Monetary International for Crisis this see on issues More management crisis changes. Union European wage on and downward issue for push administrations currency, one’s devaluating by competetiveness 127 2014). 126 as growth cost labour below.demonstrated theIMF’s compilation unit by data real with alongside sharply, fell growth wage nominal addition, ad also has it low, debt public kept has policy budget report IV. Article devaluation internal fiscato turning was period time this of decisions policy important most the of One long additional puts this https://www.imf.org/external/about/econsurv.htm
h tr rfr t one to refers term The
Ramya Sundaram et al., “Portraits of Labor Market Exclusion” (Washington, DC: The World Bank, Bank, World The DC: (Washington, Exclusion” Market Labor of “Portraits al., et Sundaram Ramya nentoa Mntr Fn, 21 Atce V Consultation IV Article “2014 Fund, Monetary International „ Country surveillance is an ongoing process that culminates in regular (usually annual) comprehensive comprehensive annual) (usually regular in culminates that process ongoing an is surveillance Country -
term health status.term health 3
– 4 (2009): 450 4 (2009): V consultations" because they are required by Article IV of the IMF's Articles of Agreement. of Articles IMF's the of IV Article by required are they because consultations" V 128 burden on household on burden 127 rnational Monetary Fund, 2014), 5. 2014), Fund, Monetary rnational –
f h Itrainl oeay ud oe ta “hl ti near this “while that notes Fund Monetary International the of 70.
instead of using stimulus and devaluing the devaluing and stimulus using of instead 126
of the crisis management approaches within the EU, where instead of regaining regaining of instead where EU, the within approaches management crisis the of
Journal of Policy Modeling Policy of Journal
and and , accessed: 25/05/2015) , accessed: government finances as well as adversely affecting affecting adversely as well as finances government 49
Bar
ded a pro a ded Zeitschrift Für Staats Zeitschrift ry Eichengreen, “Implications of the Euro’s Euro’s the of “Implications Eichengreen, ry — - cyclical bias to fiscal policy.” fiscal to bias cyclical
Staff Report; Press Release; And And Release; Press Report; Staff
4 n. (02: 541 (2012): 4 no. 34, national currency national - Und EuropawissenschaftenUnd l austerity and and austerity l . The 2014 2014 The . – 48; László László 48; - balanced balanced 129
In In ”
CEU eTD Collection Source unemployment rate, %, Estonia and EU28, 2009 8 itstood slightlydecline of6,7%. below its level 2008 some after and grow to started education on spending addition, In years. previous of approach dep marked a is which GDP the of 1,6% to increasing by followed expenditures peculiar some are there politics austerity policy market labour skyrocketed unemployment as notably, Most ofobserved. be to developments frontrunners the of one was Estonia While IMFSource: 5 . Table: LMP expenditure, government expenditure oneducation, % . Figure: Growth wagesof labour and cos 2014 2013 2012 2011 2010 2009 : Eurostat , LMP expenditure, % of
Estonia 2014
0,686 0,728 0,720 1,097 1,603 Article IV Consultation n.a GDP EU28 1,884 2,137 2,153 n.a n.a n.a Government expenditure on education, % of GDP , 4 Estonia ts, Estonia, 2000
50 - 2014 n.a n.a 6,4 6,3 6,7 7,1
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CEU eTD Collection 2008). October 130 households contrast, non to and due net safety volatility social income the to attachment weak Their hardest. the workers skilled low young, increased. benefits parental hand, other kroons 1700 to 1000 from benefit unemployment in raises Furthermore, child. next every and third the for after benefits of amount the increase the and allowance care child in raise kroons 200 the cancelling Thisincluded social of extensions planned of number a cutting for opted government the since Estonia, in policy social on effect direct very a had crisis financial The 2013. envi 2008 of timeframe at population the of share the reduce t national 40% the above 30 aged population the in grow to continued attainment education 9,5%.Tertiary of target national the to proximity close means 9,7% this to 2009 in 14% from period, observed the in declined education from leavers early of share the Moreover, 76%. of target national the from far not is This 73,3%. at stood it 2013 in and average EU the exceeded 2011 by and 2010 after back ini dropped rate employment noted, was it As governments.the of policy fiscal pro the and crisis the given indicators EU2020 the in well rather performed country The
Diana Tur and Natalja Viilmann, “Labour Market Review 2008/2” (Talli 2008/2” Review Market “Labour Viilmann, Natalja and Tur Diana ronment
for large scale poverty reduction. poverty scale large for - 2014 the financial crisis and fiscal rigor was creating an an creating was rigor fiscal and crisis financial the 2014
ih hlrn ae bte ta te vrg bcue f aiy support family of because average the than better fared children with
re. n h ohr ad Etna ald o eue h meaningfully the reduce to failed Estonia hand, other the On arget. o acle, swl a h once the as well as cancelled, got
- standard work contracts contributed to this vulnerability. In In vulnerability. this to contributed contracts work standard - risk
130 -
According to Flèche and Radziwill the crisis hit the the hit crisis the Radziwill and Flèche to According of - 2004 whole the over poverty 9,7% in 2013. Similarly to the employment ratio, employment the to Similarly 2013. in 9,7% This resulted in a a in resulted This 51 - 4 B 21 i rahd 37 wih s already is which 43,7% reached it 2013 By 34.
benefits at the beginning of 2009. of beginning the at benefits - n: Economics Department, Eesti Pank, Pank, Eesti Department, Economics n: a - 23,5% year school allowance. On the On allowance. school year
at - risk - 2014 period. In the In period. 2014 - tially but bounced but tially of - poverty rate poverty unfavourable - cyclical
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CEU eTD Collection 134 Paper Working 133 Policies,” Inclusion Social and Policies Inclusion,20 Social Assessment and Review in Peer Jobs and Growth between Synergies of Extent The Perspective: Inclusion 132 (2012). Papers, Working EconomicsDepartment OECD 131 the by enhanced greatly indeed was flexibility market labour while that noted Égert and Brixiova the of wages). minimal low into translates (which sector private the within decentralized is setting wage marginal; are ALMPs 2008: of end the its disregarded usually employers but provision protective quite actually was legislation employment protection the reform, 2008 a to prior that found have studies several hand, other the On labo more the flexible to balance order In Board. Insurance Unemployment the with Board Market Labour the merging by setting institutional the changing as well as deregulation comprehensive introduced 2009, in effect into Dec 2008 in adopted Act, Contract Employment new The into consideration. at people the on crisis the of impacts other and prices in rise the involved systemically government the different NRP the of processes monitoring and preparation 2008 the for Programme Reform National the in visible contrast, In integrated bettertargeted, a is policy social needed. approach policies.
ae Vii Mare Natalja Viilmann, “Labour Market Review 2010/2” (Tallin: Economics Department, Eesti Pank, 2010). Eesti Pank, Department, Economics (Tallin: 2010/2” Review Market “Labour Viilmann, Natalja Sarah Flèche and Artur Radziwill, “Reducing Poverty in Estonia Through Activation and Better Targeting,” Targeting,” Better and Activation Through Estonia in Poverty “Reducing Radziwill, Artur and Flèche Sarah uaa rxoa “aor akt lxblt i Etna Wa Ca What Estonia: in Flexibility Market “Labour Brixiova, Zuzana Eesti Pank Eesti 131
s. However, as Brixiova shows the main institutional settings remained unchanged by unchanged remained settings institutional main the shows Brixiova as However, s. stakeholders. On stakeholders. s “seset f h 2008 the of “Assessment es,
Their policy paper points out that at that out points paper policy Their
2009, no. 38 (2009). 38 no. 2009, i hr ana her n
claims that this change in labour market flexibility was essential. was flexibility market labour in change this that claims 132
yi Vis eot ta te oil esetv i srnteig hc is which strengthening is perspective social the that reports Viies lysis
the other hand, in hand, other the
ur market the Act eased the eligibility for unemployment benefit. for unemployment eligibility the ur theeased Act market - 2010 National Reform Programmes for Growth and Jobs from a Social Social a from Jobs and Growth for Programmes Reform National 2010
133 08.
Despite this assessment, the Labou the assessment, this Despite - work poverty is not considered as a problem and and problem a as considered not is poverty work -
52 risk
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OECD Economics Department Department Economics OECD high in the country and and country the in high - poverty are not taken not are poverty I adto, n the in addition, In . r Market Report Report Market r 134
In addition, addition, In
CEU eTD Collection 138 137 12. Inclusion, 2015), and Affairs Social Employment, 136 135 following: policies. previous 20. to rose policies market labour 2012 Services and Benefits LabourMarket the by regulated still are section, previous the in ALMPs,listed main The „remarkable.” changes a (ESPN) Network’s spending. of share higher a and attention more gaining are ALMPs that fact the highlight do they elementssecurity and flexibility behin lag measures security legislation new
Võrk et al., “ESPN Thematic Report on Social Investment.” Social Report on Thematic “ESPN al., Võrket in Estonia.” Outcomes and Reforms Market “Labour Égert, and Brixiova “National Social Report 2014 2014 Report Social “National nrs õk t l, EP Teai Rpr o Sca Ivsmn” Busl: Directorate (Brussels: Investment” Social on Report Thematic “ESPN al., et Võrk Andres -
2013. With this and the subsequent program for 2014 for program subsequent the and this With 2013. the cost of as thetraining opposed totheprevious 25%; compens be will employees for training provide who employers similarly, emphasis special with people; onolder services, market labour in participate to continue can who people of range the expanding disabilities long the including expand, will exercises work months) 6 to (up longer for eligible people of number the
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ssessment of the country’s social policies and the ESPN report terms the the terms report ESPN the and policies social country’s the of ssessment
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Estonia,” 2014, 5 2014, Estonia,”
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represent an extension of of extension an represent ated for 50% of of 50% for ated - General for for General CEU eTD Collection Europe, 2009). for Commission Economic Nations (United Review National 2014,” 140 Pank 139 with mobility of coupled that thegovernment sharethe downward meant wages at of population accompani was which growth economic in contraction causing by picture previous the of much upset crisis The Lisbon the by Agenda. advocated measures flexicurity on emphasis more put Board Market Labour 2006 the since well as period crisis pre the in happen did development institutional that noted be must It justified. were ALMPs on spending low the elite, political country’s the of approach policy liberal radical the given where, growt economic robust by accompanied were unemployment) declining at ALMPs and flexicurity to attention ofpeople level high sustained a and policy social spendingon marginal Thisresultedparticular. in and spending social of level low very a maintained country the crisis financial the to prior since intriguing very is case Estonian the of trajectory The Main findings isgovernment last stepa of labour the in segmentation gender reducing of aim the with 2013 in Council Equality Gender the of unemployment for eligible not insurance)the minimumwage. rose of tohalf are who those for days 270 of maximum a for (paid benefit unemployment monthly the 2013 January from Programmes, Employment the to addition In -
Natalja Viilmann and Orsolya Soosaar, “Labour Market Review 2012/2” (Tallin: Economics Department, Eesti Eesti Department, Economics (Tallin: 2012/2” Review Market “Labour Soosaar, Orsolya and Viilmann Natalja risk “Estonian National Review of the Implementation of the Beijing Declaration and Platform for Action, 2009 2009 Action, for Platform and Declaration Beijing the of Implementation the of Review National “Estonian , 2012). -
of akt n pooig female promoting and market
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54 akt atcpto. hs dioy oy o the to body advisory This participation. market Another new development development new was theestablishment Another
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CEU eTD Collection policies. market mix ofliberal policy domestic previous the to addition in policies se practice” “best EU it the to turn and a facilitated present increasingly being of is concept investment the social evaluations and their flexicurity in and documents government official In therapy. termed and shock 1990s the in applied those to similar were tools main the although management c socialmore the for the way pavedchanges policy and that institutionalseems it summaryIn return to the previouslows. not did it however phenomenon, lasting a be to prove not did spending policy market labour in these positive at The However Estonia. order. in be not in might conclusion optimistic overly an economy” formulating seem, might developments “knowledge a creating educat for on dedication spending increasing the Furthermore, overall. spending social in and spending policy market labour of upswing the in reflected is focus changing This 2008 for Programme risk - of - - oet ws xeinig ute vleaiiy Aant hs akrp ae h Ac the came backdrop this Against vulnerability. further experiencing was poverty risk - of - poverty ratio is remaining high, despite incr despite high, remaining is ratio poverty - 2010 which put heavy emphasis on labour market security and flexibility. flexibility. and security market labour on emphasis heavy put which 2010
55
eased social spending and the increase the and spending social eased ion signals the strong strong the signals ion m ta te crisis the that ems tion risis CEU eTD Collection States.” EUMember 142 overCommunism of Capitalism Victory the 141 inc to led pensions disability and schemes retirement centre socialist, a under started th market of liberalization the and state welfare generous the of retrenchment the Hungary In Hungary. and Estonia in policies social and employment on impact meaningful and lasting finding the studi case two The evidencethe empirical ofthepost on based supported sufficiently not is and pessimistic overly is policies social state member new thes inspired. it changes profound the and crisis the of light in revisited be should Djankov and Aslund and Greskovits and Bohle by described was that typology previous the add value the to contribute together post the in agendas EU by influenced been have countries both that clear a is documentsthere andOMC basedonthe changes observe can since we true proved on hypothesis the Moreover, question. research out set initially the answers finding This institutions. and policies previous dismantling and liberalization post following social more a towards moving is Estonia where cases, in the of results The Conclusion
De la Porte and Jacobsson, “Social Investment or Recommodification? Assessing the Employment Policies of the the of Policies Employment the Assessing Recommodification? or Investment “Social Jacobsson, and Porte la De Greskovits, and Bohle is showed that the sceptical assessment De la Porte and Jacobsson on the OMC’s impact on on impact OMC’s the on Jacobsson and Porte la De assessment sceptical the that showed is - right government. While the labour market liberalization and the revisions of various early early various ofrevisions the and liberalization market labour the While government. right s
s ht h pltcl lgmn o te oenn pris os o se t hv a have to seem not does parties governing the of alignment political the that is
es revealed interesting and perhaps some counter some perhaps and interesting revealed es - depth analysis shows that there is an observable convergence between th between convergence observable an is there that shows analysis depth Capitalist
Diversity on Europe’s Periphery Europe’s on Diversity
.
centre - crisis period. crisis ed of the thesis since the result of the follow the of result the since thesis the of ed - left government and continued under the conservative, conservative, the under continued and government left 142 56
; Aslund and Djankov, and Aslund ; reasing employment rate in Hungary it still it Hungary in rate employment reasing - crisis status quo and Hungary Hungary and quo status crisis
- the EU’s influence has been has influence EU’s the crisis period. These findings findings These period. crisis - intuitive findings. One of One findings. intuitive The Great Rebirth: Lessons from from Lessons Rebirth: Great The 141
Furthermore, the the Furthermore, - up study is that is study up e labour labour e sign e CEU eTD Collection 143 coupled now is it policies market labour the of component main a still is liberalization while that at people of number the and unemployment development positive this Unfortunately, on education. expenditure increasing and policies market labour active increased the with model towards flexicurity convergence a shows changes institutional and policy the and Moreover, social spending. increased with model social more a a was towards there shift the definite that demonstrated case Estonian the hand, other the On liberalization. for In hastheir emergence been.” than guaranteed more not is survival future their features, their of many preserve to able been have far so regimes new the if “even that conclude they since model their of realm the outside toward liberalism embedded from away state moving of welfare signs and liberalization market labour Bohle the revisit to possibility the opens retrenchment continued The is. adaptation flexicurity re again is which governments Hungary successive by in education trend in underinvestment discouraging further a Moreover, willingness. government to lead not does unfortunately that policies these to awareness government signals mentioning constant and prese are EU the of ideas inclusion social and flexicurity the documents official in that observe can we However, recommendations. Union European or governments of irrespective Hungary, change institutional and wor public policy that revealed of examination The policies. market labour active other to opposed as ineffective largely proved been has that programmes work public scale large on relies
Bohle and Greskovits, Greskovits, Bohleand terms of the political variable we can observe the same in Estonia with broad political support political broad with Estonia in same the observe can we variable political the of terms Capitalist Diversity on Periphery Europe’s Diversity Capitalist shms no pirte oe ohr cie aor akt oiis in policies market labour active other over priorities enjoy schemes k
143
- risk 57 - of
- , 139. poverty. The Estonian case, however, shows however, case, Estonian The poverty. is yet to reduce considerably the long the considerably reduce to yet is - Greskovits typology since Hungary showsHungary since typology Greskovits
s liberalism. This dynamism is not not is dynamism This liberalism. s
aor akt policy market labour el o see the skewed how veal - term term nt CEU eTD Collection 144 construction site effect. permanent the of manifestations the just are developments crisis post these or region European reco a if see to cases more include could research further this, all Given travels. case Hungarian the far how on findings the limits which does, Estonia as influence regional same the has it that signal strong no is there group Visegrád Hung While generalizable. more case Estonian the of finding the makes which countries Baltic the among setter trend a is Estonia However, possible. not is studies case two limita The model This development liberal liberalism. Estonian of inthevolume receives Djankov. Aslund and of the that form praises embedded high more the questions a also towards development moving is country the that mean towards steps economy liberal predominantly meaningfula remains Estonia While well. as Portesecurity make la did De Estonia the flexibility against advocating besides goes since finding assessment This situation. crisis a with faced when best EU with line in policies adapt to willing are governments Estonian the Hungary unlike that signals etc.) guidance, career training, as (such services market labour various and socia increased with
Aslund and Djankov, Djankov, Aslundand tions of the thesis might warrant caution since drawing region wide conclusions from conclusions wide region drawing since caution warrant might thesis the of tions l dimension l The Great Rebirth: Lessons from the Victory of Capitalism overCommunism Capitalism of Victory the Lessons from Rebirth: The Great
that can be traced back to the EU the to back traced be can that gnizable pattern emerges within the Central Eastern Eastern Central the within emerges pattern gnizable 144 58
. The emphasis on targeting targeting on emphasis The .
this shift in policy might policy shiftin this .
ary is part of the of part is ary - Jacobsson Jacobsson - pr actice CEU eTD Collection ( 145 9 Appendices http://ec.europa.eu/eurostat/data/database . Table 10 20 30 40 50 60 70 80 0
f o sae ohrie a otherwise, stated not If 2004 55,3 67,3 : Female emplyment rate, age group 2
2005 55,6 69,7 145
2006 55,6 72,5
ll data are downloaded and compiled from the Eurostat online database database online Eurostat the from compiled and downloaded are data ll
EU (27 countries) (27 EU
2007 55,2 72,6
),last accessed:20/05/2015 2008 54,8 72,9
0 - 59 64,%, Hungary, Estonia, EU28, 2004 2009 54 69
Estonia 2010 54,6 65,9
2011 54,7 67,8 Hungary
2012 56,2 69,4
2013 56,9 70,1 - 2014
2014 60,2 70,6
CEU eTD Collection 11 2003 10 10 20 30 40 50 60 70 10 20 30 40 50 60 70 80 90 . Table . Table 0 0 - 2014 2003 2004 62,4 69,6 31,1 53 : :
Employment rate older of workers,%, Employment rate the of total population, age group 20
2004 62,1 70,3 2005 55,7 33
2005 62,2 72 2006 33,2 58,4
EU (28 countries) (28 EU EU (28 countries) (28 EU 2006 62,6 75,9 2007 32,2 59,9
2007 62,3 76,9 2008 30,9 62,3
2008 61,5 77,1
60 Hungary, 2009 31,9 60,3
Estonia
2009 Estonia 60,1 70
2010 33,6 53,8
Estonia, EU28, 2004 2010 59,9 66,8
- 64, %, 2011
35,3 57,5 Hungary Hungary 2011 60,4 70,6
Hungary, Estonia, EU28,
2012 36,1 60,5 2012 61,6 72,2
- 2014
2013 37,9 62,6
2013 73,3 63
2014 41,7 64 2014 66,7 74,3
CEU eTD Collection EU28 13 12 10 12 14 16 18 10 15 20 25 . Table . Table 0 2 4 6 8 0 5 , 2003 2003 2003 12 18 : : At Early leavers from education and training, agegroup 18
- 2014 - risk 2004 2004 20,2
- of
- poverty rate, Total, %, Hungary, Estonia, EU27, 2003 2005 13,5 18,3 2005
EU (27 countries) (27 EU 2006 15,9 18,3 EU (28 countries) (28 EU 2006
2007 19,4 12,3 2007
2008 12,4 19,5 2008 61
2009 Estonia 12,4 19,7 2009 Estonia
2010 12,3 15,8 2010
- 24, %, Estonia,Hungary, Hungary 2011 13,8 17,5 Hungary 2011
- 2014 2012 17,5 14 2012
2013 14,3 18,6 2013
2014 14,6 2014
CEU eTD Collection 14 0,000 0,500 1,000 1,500 2,000 2,500 . Table : LMP expenditure, total, GDP,% Hungary, Estonia, EU28,2004 0,234 0,693 2004
0,187 0,720 2,014 2005 European Union countries) (28 Union European
0,152 0,702 1,809 2006
0,149 0,713 1,591 2007
0,280 0,721 1,601 2008 62
2,153 2009 1,603 1,170 Estonia
1,097 1,371 2,137 2010
0,720 1,038 1,884 - 2011 2013 Hungary
0,728 1,151 2012
0,686 2013
CEU eTD Collection EU27, 2003 16 15 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 10 12 14 16 18 . Table: . Table 0 2 4 6 8 2004 10,1 2003 6,1 6,2 : 6,5 Unemployment rate, total, Hungary, Estonia, EU27, 2004 Total general government expenditure on education,
-
2012 2005 7,2
2004 8 5,8 6,3
European Union countries) (27 Union European 2006 5,9 7,5 2005 5,8
6,0
2007 7,4 4,6 2006
5,8
6,0
2008 7,8 Estonia 5,5
2007
5,5 5,9
2009 63 13,5 10
2008 5,2 6,7 Hungary 2010
11,2 16,7 Estonia
2009 5,3 7,1 2011 , % , % GDP,of Hungary, Estonia, 12,3
11
-
2014 2010 5,7 6,7 2012
Hungary 10 11
2011 5,2 6,3 2013 10,2 8,6
2012 2014 6,4 7,7 7,4
4,8
CEU eTD Collection 2003 17 10,0 15,0 20,0 25,0 . Table: 0,0 5,0 - 2012
2003 16,1 18,5 Government expenditure on Social protection, of% GDP, Hungary, Estonia, EU27, 9,9
2004 10,2 16,1 18,3
European Union countries) (27 Union European 2005 17,0 18,2 9,8
2006 17,7 17,9 9,4
2007 17,6 17,5 9,3 64
2008 11,6 17,8 18,0
Estonia 2009 15,6 18,6 20,0
2010 14,5 17,8 19,9 Hungary
2011 12,9 17,2 19,6
2012 12,6 17,1 19,9
CEU eTD Collection Source: 18 long Learning for Life-Strategy Pillars system protection social modern a Developing segmentation market labour and employment undeclared oflevel the reducing environment; law Labour policies market labour Active . T able “ : Elements theof flexicurity concept in the Hungarian National Action Plan 2008 National Action ProgrammeNational forEmployment Growth and Elements of the flexicurity concept in the National Action Plan 2008-2010 Plan Action National in the of flexicurity concept the Elements Integration of non-state organisations in the employment services network services employment the in organisations Integration of non-state system training of the development curriculum and methodological Quality, Supporting job training in programme Career New system guidance career of a Development network Centre Training Vocational Integrated Regional of the development Continuing the competencies market labour of key Development programme Forward!” Step „One Measures Strengthening the promotion of employment in the social protection system protection promotion the social Strengthening the of in employment system services social and employment integrated up an Setting system pension Transformation disability of the services day-care child to Improving access system Transformation pension of the informal economy the reducing at aimed of measures Package awareness employer Raising inspection labour Strengthening disadvantages market labour with of of employment people case the in contribution security social Reducing Programmes promoting of employment Roma population the EU the by funded investments infrastructure persons at of disadvantaged Employment microregions most disadvantaged the in situation Improving market labour the disabilities of employment persons and with rehabilitation Supporting the 65
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