Lecture 10 employment and underemployment
Download
1 / 100

Lecture 10: Employment and Underemployment - PowerPoint PPT Presentation


  • 88 Views
  • Updated On :

GEE 263S/SWK 2160: Economic Insecurity and Social Security. Lecture 10: Employment and Underemployment. Instructor: Dr. Wong Hung. 失業問題嚴重. 失業率由 97 年的 2.2% 大幅上升至 99 年底的 6.3% ,失業人數高達二十萬八千人。

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Lecture 10: Employment and Underemployment' - duke


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Lecture 10 employment and underemployment l.jpg

GEE 263S/SWK 2160: Economic Insecurity and Social Security

Lecture 10: Employment and Underemployment

Instructor: Dr. Wong Hung


Slide2 l.jpg
失業問題嚴重

  • 失業率由97年的2.2%大幅上升至99年底的6.3%,失業人數高達二十萬八千人。

  • 2001年下半年全球經濟放緩,加上九一一事件的打擊,全球及香港經濟急速下滑,2001年十一月失業率重上5.8%的高水平,失業人口再次超過二十萬的大關,到2002年十一月至一月,失業率急升至6.7%,近二十二萬人失業,

  • 2003年3月,香港出現非典型肺炎, 失業率在2003年4至6月更上升至8.3%的高點(參看圖一)有300,000人失業, 就業不足率上升至4.3%, 有151 000人開工不足


Slide4 l.jpg
隱性失業嚴重

  • 不過,由於官方的失業統計傾向將長期失業者如老人,家庭主婦及殘疾人士,界定為「經濟非活躍人口」,不少失業者處於隱性的失業狀況,真正的失業人數比官方的數字更大


Polarization l.jpg
經濟二元化(polarization)

  • 科技發展以及全球化的發展趨勢引致經濟轉型,更將工作市場以及勞動人口分割成為一個核心(core)以及一個邊陲(peripheral)的二元化勞動市場(polarized labour market)

  • 在核心的勞動市場中,勞工通常擁有較高教育水平、報酬及職位穩定性;而在邊陲的勞動市場,勞工的教育水平、報酬及職位穩定性均較低。

  • 低教育水平人士因非工業化的發展而更加窮困。非工業化而形成的結構性失業,打擊了在傳統製造業工作的藍領工人的生計。


Polarization6 l.jpg
經濟二元化(polarization)

  • 政府和私人企業採用不同的彈性管理(flexible management)方法,透過僱用兼職、臨時替工、短期合約的工人以及以外判的手法轉而使用承包制下的工人,令傳統可以透過年資而可以逐步在公司或行業中內部上升內部勞動市場(internal labour market)逐步消失。

  • 內部勞動市場的崩潰,同時降低了低技術及低教育水平的僱員者對工作的穩定性,亦同時令僱員喪失了對工作的安全感。(Hakim, 1995 ; 黃洪, 1999)


Polarization7 l.jpg
經濟二元化(polarization)

  • 經濟發展亦不一定會改善低收入人士的生活。在經濟低或負增長時期,那些弱勢社群很容易會因失去工作,而基於被歧視及社會排斥(social exclusion)等原因,她/他們亦無法再次進入勞動市場,而最終變成長期失業者。

  • 在高增長的時期,即使她/他們可免於失業,其實只能在低薪酬的勞動市場中找做散工、兼職及臨時的工作。而且快速的經濟發展更容易造成高通脹,他們的名義工資或有提高,但實質工資並不一定有真正的增長


Slide8 l.jpg
微觀原因:個人特性

  • 「身份達成理論」(status attainment theories)認為個人的家庭背景(如父親的教育和工作)和社會經濟資本(如本身的教育水平或第一份工作)是決定一個人現時職業地位的最重要因素。

  • 「人力資本論」(human capital theories)則認為教育水平、工作經驗和訓練是最重要的因素去決定勞工的工資水平、工作流動性及職位穩定性。

  • 「社會資本理論」(social capital theories)則提出除了人力資本外,個人的社會網絡即其社會資本亦是決定勞工勞動結果的重要因素


Slide9 l.jpg
對微觀原因的批評

  • 這些理論預設假定勞動市場是同質的,即個人若能提昇自己的資產或生產力,便能在工作階梯攀上較高位置。

  • 工作的競爭就是以個人的技能或特定職業所需要的專業知識為準則。

  • 根據這樣的看法,全球一體化和經濟改組引發了都市貧窮的原因是,對窮人的訓練或社會資源不足,使他們不能迎合新的經濟環境。

  • 解決的方法將會集中在如何為這些人提供足夠的知識和技能,以及幫助他們建立一個支援系統。這亦是香港政府現行面對結構性失業及貧窮勞工問題所採取的政策。


Segmented labour market theory l.jpg
分割的勞動市場理論(segmented labour market theory)

  • 提出較宏觀的看法與假設:

  • 勞動市場是分開為若干部分,而每部份在決定勞動結果時均有其獨特結構。

  • 經濟中好與壞最大的區別在於職位本身,而非個人的技術水平或生產力。

  • 區別勞動市場的結構因素遠比說明勞動結果的個別工人的特性重要


Slide11 l.jpg
分割的勞動市場

  • 低工資的勞動市場結構上有別於其他勞動市場,

  • 勞工在低工資勞動市場與其他市場之間的流動是較罕見的。

  • 對城市貧窮,這理論的另一啟示是任何結構因素導致低工資勞動市場收縮或擴大時,會直接影響低工資工人的生活。有時候雖然整體經濟仍有增長,但當低工資勞動市場處於收縮的狀況時,次等勞動力市場的低工資勞工生活不但未能改善而且更會下降。


Slide12 l.jpg
二元層級化的香港勞動力市場

  • 這亦是香港在九十年代出現結構性失業情況後的寫照。由於香港有大量低薪低技術勞工的供應,所以引致次等勞動力市場的實際工資下降及提高了在次等勞動力市場中失業,開工不足和兼職就業的情況。


Slide13 l.jpg
就業/失業的簡單二分忽略了邊緣勞工的處境

  • 從80年代的製造業北移到90年代的金融風暴,香港政府一直都把扶助勞工的焦點放在減低失業。

  • 政府及傳媒關注的數據亦環繞著每季的失業數字上,卻忽略了「失業→就業/就業不足→再失業」的循環現象,

  • 政府缺少搜集邊緣勞工例如兼職及臨時工的有關數據,所以無法深入掌握勞動力市場出現邊緣化的趨勢,亦無法進行進一步的分析

  • 基於此,亦無法作出制訂適當的政策、法例和規劃處理邊緣勞工的問題。


Grubb 2000 l.jpg
Grubb (2000):對弱勢青年人有效的教育及訓練計劃

  • 正規(補底或基礎)教育, 職業技術訓練, 工作中學習(work-based Learning) ,三者要適當混合,最好能真正整合

  • 有支援服務如輔導或實習

  • 對本地勞動力市場有深入的聯繫並且訓練計劃得到僱主支持

  • 為那些願意進修的服務使用者提供延續教育的途徑,

  • 搜集本身計劃的資料, 以這些資料來改善本身計劃


Oecd 2000 from initial education to working life making transitions work l.jpg
經濟合作發展組織(OECD) (2000) From Initial Education to Working Life: Making Transitions Work

  • 總結了14個國家經驗如何令青年人成功由教育過渡到工作生活

  • 健康的經濟發展

  • 教育與工作以及持續教育的接軌要有良好,有組織的途徑.

  • 對弱勢及有危機的青年人要有嚴密的安全網, 提供特別的訓練

  • 良好的信息及指導

  • 有效的架構及過程


Slide16 l.jpg
良好的途徑

  • 學徒, 學校為基地職業訓練及通才訓練均能成為有效途徑 更的一般,技藝及職業教育選擇.

  • 但成功經驗是有關學習途徑及資歷架構必須是清楚介定,有良好組織及開放,以及在終身學習角度下設計及發展出來的

  • 有關途徑及連繫是由一有力的組織擔任


Slide17 l.jpg
經濟合作發展組織(OECD

  • 供應面:

    • 改善年青人的人力資本以至求職動機,

    • 增強年青人在勞動力市場的受聘機會,包括

      • 改革主流教育制度、

      • 推動職業培訓計劃、

      • 鼓勵自僱和實施各項工作福利(workfare)

  • 需求面

    • 嘗試刺激公營或私營部門,為青年人提供就業機會,

      • 補貼制度

      • 各項直接職位創造計劃。


Slide18 l.jpg
積極勞動力市政策ALMP

  • 盡量為對失業者提供深入的輔導、促進其求職動機及求職協助的計劃亦非常有效。

  • 為不同失業者設計內有針對性的課程,內容要適合求職者及僱主的個別需要。

  • 由於失業時間愈來愈長,多種形式的就業補助可以用來維持工人對勞動力市場的接觸。但有關補助必須是短期並且受嚴密監察。而有關僱主要繼續獲得補助必須基於其對前補助僱員的留用率。


Slide19 l.jpg
積極勞動力市政策ALMP

  • 為能在競爭環境下生存而有企業家技巧及動機的失業者提供創業援助。

  • 有關計劃規模應盡量細小,及應有明確的對象令有關計劃可以為相對是同的一群失業者提供服務。

  • 對積極勞動力市場政策必須有適當的監察及控制,減少對勞動力市場的扭曲。

  • 維持參加者在積極勞動力市場政策中一段較短的時間,減少僱主及僱員因計劃而作出的破壞生產力的行動


Centre for employment training cet l.jpg
Centre for Employment Training (CET)

  • Centre for Employment (CET)是美國少數被公認為有效的短期訓練計劃

  • 而其重要的特色及策略便是建立社區為本的訓練機構,重建區內的社會資本,增加區內僱主與居民之間的信任與聯繫,來解決弱勢社群的失業問題。


Centre for employment training l.jpg
Centre for Employment Training

  • CET首先在加州San Jose市開始,逐步擴展至美

  • 國西部及西南部大部份地區。眾多評估研究指出CET是在美國少數訓練計劃對加者的收入能有長期正面的提升作用,是唯一有用的短期(6個月)的課堂訓練模式。


Centre for employment training cet22 l.jpg
Centre for Employment Training (CET)

  • CET學員比同一城市的訓練計劃學員能有較高的收入、維持較長久的工作,亦在中長期能有更大的加薪

  • 而更難得的是CET獲得上述理想成績,並不是透過選擇參加者,而是將重點在最弱勢的社群中如失業農民工、領取公共援助的母親、輟學青年、過犯、對英語有困難的人士。


Centre for employment training cet23 l.jpg
Centre for Employment Training (CET)

  • CET的成功經驗令人相信透過公眾或民間干預勞動力市場是可以令勞動力市場出現真正的變化。

  • CET的訓練模式包括: 隨時進、隨時出;以工作場景為背景及以學員能力為基礎,均令人耳目一新。

  • 但Harrison & Weiss (1998) 總結這並非CET真正成功的特點,因為這些因素及措施在其他計劃均可以找到。


Slide24 l.jpg
CET與社會資本

  • 網絡建立成功的關係及將轉介的過程成功制度化。例如CET的運作就如一間公司,訓練場所就佈置如工作場所(學員上學需要打咭、領取「糧單」而非「成績單」),這便是將僱主的觀念制度化並引入在訓練之中。

  • 訓練課程的導師是由會聘請有關學員的企業的資深導師擔任,而學員的學習問題以至課堂以外的個人問題,均是由其直接「上司」(導師)所負責。


Slide25 l.jpg
CET與社會資本

  • 在CET的一天學習,就好像在一間大公司的在職訓練一樣。

  • CET在每一地區設立了「工業諮詢局」(Industrial Advisory Boards)及「技術諮詢委員會」(Technical Advisory Committees),參與的成員包括地區中公司的行政人員、人力資源經理、前線督導、甚至工程師。

  • 上述兩組織在訓練中擔任重要的角色。成功的「工業諮詢局」有清楚的架構,經常聚會,並參與甚至領導課程發展、籌款、尋找或捐出他們的機械及器材來支持訓練工作。


Slide26 l.jpg
CET與社會資本

  • CET另一重要的成功優勢在於它與美國西岸的社會運動有密切的聯繫。

  • 眾多不同的組織和力量在建立及維繫美國農業工人的組織,組成美國農民工人聯盟(United farmworkers of America UFW),亦同時是建立及維繫CET的組織。

  • 美國西岸西班牙語系社的政治及文化為CET提供了聲望及充權(empowerment)的可能性


Slide27 l.jpg
CET與社會資本

  • Melendez(1996) 總結CET找到了方法能夠成功推動學員可以認真地發展特定職位所需的技術,

  • 並令自己成為僱主招聘網絡的重要組成部分

  • CET同時在勞動力市場的供應面及需求面同時工作。


Slide28 l.jpg
對香港的啟示

  • 參考CET的成功經驗,香港的展翅及毅進等訓練計劃有關計劃必須以重建社區內的社會資本為目標,加強青年、僱主及社區之間有制度化的信任、訊息渠道及教導;

  • 而非單是提供訓練課程來提高青年的人力資本。

  • 港府新推行的青年見習計劃加強僱主與青年之間的接觸是正確的一步。

  • 但由於現時展翅及青年見習機構由官方的勞工處擔任,未能細緻處理各區不同僱主及青年人的需要,只能對實習作簡單的配對工作,對於有關訓練能否針對個別僱主及青年的需要顯得無能為力,所以效果肯定不彰。


Lecture 11 almps and workfare l.jpg

Lecture 11: ALMPs and Workfare

Instructor: Dr. Wong Hung


Replication of cet l.jpg
Replication of CET

  • analysis of implementation experiences at the twelve replication sites focused on four distinctive elements of the CET model:

    • employment and training services designed to mirror the workplace,

    • intensive participation in such services,

    • the close involvement of industry in the design and operation of the program, and

    • organizational capacity and stability.


Summary l.jpg
 Summary

  • most replication sites successfully implemented most elements of the CET model, but several sites had difficulty sustaining their programs for the full demonstration period.

  • CET model proved challenging to implement in its entirety, but many of its features appear adaptable to mainstream employment and training programs serving out-of-school youth.


Result 1 possible replication l.jpg
Result 1: possible replication

  • A majority of the 12 replication sites successfully provided a work-like training environment, involved industry in the design and operations of their services, and offered training programs that concentrated participation over a relatively short period of time.

  • these aspects of the CET model appear to face no inherent obstacles to their implementation, given sufficient commitment from policymakers, funders, and program operators.


Result 2 difficult to sustain l.jpg
 Result 2: Difficult to sustain

  • The greatest challenge for sites was not implementing the CET model, but sustaining it.

  • While most sites implemented programs consistent with the major features of the CET model, several of these programs could not be sustained. Four of the twelve replication sites shut their doors before the demonstration had ended, and three others faced serious difficulties in maintaining program operations.


Result 3 crucial factor organizational stability l.jpg
Result 3: Crucial Factor: organizational stability

  • Future attempts to replicate the CET model should consider organizational stability as a critical factor affecting program sustainability.

  •  CET-San Jose has taken more than 30 years to establish and refine its own program of employment and training services, yet replication sites sought to develop a similar model in as few as three years.


Result 3 crucial factor organizational stability35 l.jpg
Result 3: Crucial Factor: organizational stability

  • Sites that were most successful in sustaining these programs had operated employment and training programs for many years, and had weathered numerous previous challenges. These sites had close connections to their communities and to local funders, and could rely on these connections to gain support for innovative programs.

  • Sites operated by less experienced organizations faced greater difficulties in implementing the CET model, and were more likely to fail in this attempt.


Result 4 new approaches l.jpg
Result 4: New approaches

  • Replicating the CET model on a larger scale than that attempted in this demonstration may require new approaches.

  • Potential funders are often reluctant to support innovation, finding it safer to maintain existing program models than to attempt new ones.

  • New approaches, such as multi-year funding or incentives for local funders to support these programs, may be necessary to replicate the CET model on a larger scale.


The 30 months report miller et al 2003 l.jpg
The 30 months report ( Miller, et al. 2003)

  • Key Findings

  • The fidelity of program services to the original CET model varied greatly across the sites, affecting both implementation and impacts.

  • Four study sites (all older, CET-operated programs) implemented the model with high fidelity; six sites operated programs with medium fidelity; and two sites implemented the model with low fidelity.

  • Intensive participation in training and strong organizational stability were the two aspects of the CET model that were most difficult to achieve in the replication sites.


High fidelity sites stronger impacts l.jpg
high-fidelity sites, stronger impacts

  • access to the program increased youths’ participation in training activities substantially above the level for the control group

  • increased the percentage of youths completing a training certificate. In the medium- and low-fidelity sites, impacts on service receipt and completion were smaller.


Positive on female but not male l.jpg
Positive on female but not male

  • In the high-fidelity sites, access to the program produced substantial positive impacts across a range of employment-related outcomes for young women,

  • the percentage of young women ever working, employment rates at the follow-up survey, and (quite probably) earnings — though the small sample prevents a statistically significant finding.


Less impacts on men l.jpg
Less impacts on men

  • For young men, the results in high-fidelity sites were either negative or negligible.

  • The earnings of the program group were less than those of the control group — a result driven by declines in employment and hours worked, probably related to shifts in participants’ industry and occupation of employment.


Medium and low fidelity sites negative or negligible impacts l.jpg
medium- and low-fidelity sites, negative or negligible impacts

  • Program group youth in the lower-fidelity sites had lower employment and earnings; impacts were especially disappointing for those without a high school credential and those who were teenagers when they entered the sample.

  • Longer-term follow-up may produce more encouraging findings for men and for the low- and medium-fidelity sites.


The economy l.jpg
The economy impacts

  • The strong economy during the follow-up period for this report allowed youth with low skills to find jobs, possibly lessening the impact of the CET program.

  • The longer follow-up period now under way extends into the recent economic slowdown and provides an opportunity to see whether the enhanced skills produced by CET have positioned the program group members to better withstand a weaker job market.


Active labor market policies almps l.jpg
Active Labor Market Policies ALMPs impacts

  • Public spending on labour market programmes absorbs significant shares of national resources in many OECD countries, these policies being expected to achieve a variety of economic and social objectives.

  • For analytical and policy purposes, the OECD splits this spending into so-called “active” and “passive” measures

  • Active: comprise a wide range of policies aimed at improving the access of the unemployed to the labour market and jobs, job-related skills and the functioning of the labour market

  • Passive: relate to spending on income transfers


Five areas of almps l.jpg
Five Areas of ALMPs impacts

  • Public employment services and administration.

  • Labour market training

  • Youth measures.

  • Subsidised employment

  • Measures for the disabled


Public employment services and administration l.jpg
Public employment services and administration impacts

  • job placement,

  • administering unemployment benefits

  • referring jobseekers to available slots on labour market programmes.


Labour market training l.jpg
Labour market training impacts

  • spending on vocational and remedial training for the unemployed

  • training for employed adults for labour market reasons.


Youth measures l.jpg
Youth measures impacts

  • training and employment programmes targeted to the young unemployed;

  • apprenticeship training, which is mainly for school leavers, not the unemployed.


Subsidised employment l.jpg
Subsidised employment impacts

  • hiring subsidies, i.e. subsidies paid to private-sector employers to encourage them to hire unemployed workers;

  • assistance to unemployed persons who wish to start their own business;

  • direct job creation for the unemployed in the public or nonprofit sectors.


Measures for the disabled l.jpg
Measures for the disabled impacts

  • vocational rehabilitation training and related measures to make the disabled more employable

  • Sheltered work programmes which directly employ disabled people.


What works and what does not economic policy l.jpg
WHAT WORKS AND WHAT DOES NOT impacts-economic policy

  • Since one of the main objectives of active measures is to assist the unemployed to get back into work,

  • require a reasonably buoyant supply of job vacancies in order to be effective.

  • If an economy is generating few vacancies, one should not be surprised if active measures prove to be relatively ineffective.

  • Aggregate demand matters too. As The OECD Jobs Study has stressed, more effective active policies are only one element in a comprehensive strategy of macroeconomic and microeconomic measures required to cut unemployment significantly.


Formal classroom training l.jpg
Formal classroom training impacts

  • Help: Women re-entrants

  • Don’t help: Prime-age men and older workers with low initial education

  • Lessons:

    • Important that courses signal strong labour market initial relevance,

    • signal ‘‘high’’ quality to employers.

    • Keep programmes relatively small in scale.


On the job training l.jpg
On-the-Job-Training impacts

  • Help: Women re-entrants, single mothers

  • Don’t help: Prime-age men

  • Lessons:

    • Must directly meet labour market needs.

    • Hence, need establish strong links with local employers,

    • but this increases the risk of ‘displacement’


Job search assistance job clubs individual counselling l.jpg
Job Search Assistance impacts(Job Clubs, individual counselling)

  • Help: Most unemployed but in particular women and sole parents

  • Don’t help:

  • Lessons:

    • Must be combined with increased monitoring of the job-search behaviour of the unemployed and enforcement of work tests.


Re employment bonus l.jpg
Re-employment Bonus impacts

  • Help: Most adult unemployed

  • Don’t help:

  • Lessons:

    • Requires careful monitoring and controls on both recipients and their former employers.


Special youth measures l.jpg
Special youth measures impacts

  • training, employment and subsidies, direct job creation measures

  • Help: Disadvantaged youths

  • Don’t help:

  • Lessons:

    • Effective programmes need to combine an appropriate integrated mix of education, occupational skills, work-based learning and supportive services to young people and their families.

    • Early and sustained interventions are likely to be most effective.

    • Need to deal with inappropriate attitudes to work on the part of youths. Adult mentors can help.


Subsidies to employment l.jpg
Subsidies to employment impacts

  • Help: Long-term unemployed and women re-entrants

  • Don’t help:

  • Lessons:

    • Require careful targeting and adequate controls to maximise net employment gains, but there is a tradeoff with employer take-up.


Aid to unemployed starting enterprises l.jpg
Aid to unemployed starting enterprises impacts

  • Help:

    • Men (below 40, relatively better educated)

  • Don’t help:

  • Lessons:

    • Only works for a small subset of the population.


Direct job creation l.jpg
Direct Job Creation impacts

  • Help: Severely disadvantaged labour market groups (?)

  • Don’t help: Most adult unemployed

  • Lessons:

    • Typically provides few long-run benefits and principle of additionality usually implies low marginal-product jobs.


Recommendations on almps l.jpg
Recommendations on ALMPs impacts

  • to maximise ALMPs effectiveness:

    (1) rely as much as possible on in-depth counselling, job-finding incentives (e.g. re-employment bonuses) and job-search assistance programmes.

    • combined with increased monitoring of the jobsearch activity of the unemployed and enforcement of the work test.

      (2) keep public training programmes small in scale and well targeted to the specific needs of both job seekers and local employers.


Recommendations on almps61 l.jpg
Recommendations on ALMPs impacts

(3) early interventions, reaching back to pre-school, can pay dividends for disadvantaged youths, but they must be sustained.

  • reduce early school-leaving targeted on at-risk students combined with policies to ensure that they leave the schooling system equipped with basic skills and competencies that are recognised and valued by employers.

  • improve poor attitudes to work on the part of such young people and adult mentors can help in this regard.


Recommendations on almps62 l.jpg
Recommendations on ALMPs impacts

(4) as the duration of unemployment spells lengthens, various forms of employment subsidies may serve to maintain workers’ attachment to the labor force.

  • However, employment subsidies should be of short duration, targeted and closely monitored.

    (5) use subsidised business start-ups for the minority among the unemployed who have entrepreneurial skills and the motivation to survive in a competitive environment.


Curb unemployment traps l.jpg
Curb unemployment traps impacts

  • The most direct step to curb the unemployment trap is to cut replacement rates.

  • However, where actions were taken to cut replacement rates, they were usually motivated by budget considerations rather than out of concern about the possible emergence of benefit dependency or work disincentives.


Actions taken l.jpg
Actions Taken impacts

  • political difficulties: make only marginal cuts in the generosity of benefit entitlements, but to tighten up on eligibility conditions for receipt of benefits and to develop “activation” strategies for the unemployed.

  • The aim of activation strategies is to encourage the unemployed to be more active in job search and keep more in touch with the labour market.


Different strategies l.jpg
Different Strategies impacts

  • Such strategies range from attempts to provide more effective job-search assistance to the unemployed and monitoring their search activity at one end of the spectrum

  • to making it obligatory on the unemployed to satisfy work tests or participate in active programmes

  • or in education and training if they are to continue to draw benefits.

  • Such activation strategies are becoming quite common for young people in OECD countries

  • (e.g. Australia, Denmark, Ireland, United Kingdom), and they are even being

  • extended to other groups of the unemployed in some countries.


Workfare l.jpg
Workfare impacts

  • The recent US welfare reform, with its emphasis on work requirements, time limits for benefits and sanctions for non-compliance, can be viewed as an extreme example of this approach, also known as workfare.

  • The role of active labour market policies changes subtly in the context of an activation strategy.

  • They can then be viewed as a vehicle for enforcing a work test on the unemployed, especially in cases where the supply of job vacancies is low.


Conditional l.jpg
conditional impacts

  • In such cases, continued receipt of unemployment benefits becomes conditional on programme participation, as is the case in Denmark or Switzerland, and/or by offering a sufficiently wide range of programmes so that a maximum number of the unemployed will choose to enter them voluntarily.

  • In a related manner, there is a growing interest in many countries in the potential role which the rules used to control job-search behaviour and curb benefit abuse by claimants of unemployment benefits can play as part of an effective activation strategy.


Income support in uk l.jpg
Income Support in UK impacts

  • Similar system as CSSA in HK

  • Eligibility: be 18 or over and under 60; A person does not have to be available for work :-

    • bringing up or caring for a child under 16 on her/his own.

    • support caring for a seriously disabled or ill person

    • ill health or disability


Passport l.jpg
Passport impacts

  • Other than basic income support it acts as a ‘passport’ to certain other help.

    • free school meals

    • free prescriptions

    • free dental care

    • vouchers for spectacles

    • free milk and vitamins for expectant mothers and children under 5, free vitamins for nursing mothers

    • maximum housing benefit

    • maximum council tax benefit.


Jobseeker s allowance jsa l.jpg
Jobseeker’s allowance (JSA) impacts

  • a benefit for unemployed people who are capable of work.

    • Contribution-based JSA

    • Income-based JSA


Contribution based jsa l.jpg
Contribution-based JSA impacts

  • depend on her/his National Insurance contributions (NICs).

  • in one of the last two complete tax years before the benefit year in which s/he claims JSA.

  • have contributions or credits for both these years.

  • paid for a maximum of six months.

  • lower rate for 18-24 year olds, although they have to meet the same contribution conditions.

  • No dependants’ additions are paid with contribution-based JSA.


Income based jsa l.jpg
Income-based JSA impacts

  • for unemployed people who have not paid enough NICs to receive contribution-based JSA or

  • contribution-based JSA would not be enough to live on, for example, they have dependants

  • Entitlement to income-based JSA depends on a person’s income and capital (savings or property). The income and capital rules are the same as for income support, except for the treatment of part-time earnings.


Who can claim jsa l.jpg
Who can claim JSA impacts

  • An unemployed person can claim JSA if s/he is:-

    • aged 18 or over; and

    • capable of work.

    • not in work for which s/he receive wages. However, some part-time workers may be able to claim JSA;

    • And under pensionable age (60 for women and 65 for men); and


Who can claim jsa74 l.jpg
Who can claim JSA impacts

  • available for work

  • actively seeking work

  • currently holding a jobseeker’s agreement which has been agreed with an Employment Service officer

  • not in education in school or at a similar level.

  • resident in the United Kingdom, not subject to immigration control, and passes the habitual residence test


Available for work l.jpg
Available for work impacts

  • able to take up employment immediately.

  • has caring responsibilities, s/he has 48 hours in which to take up employment.

  • a volunteer, s/he has seven days in which to take up employment, as long as s/he is available for interview within 48 hours notice.

  • Some people, for example, people with medical conditions, may also be able to restrict their availability.

  • If a person cannot make her/himself available for work, s/he may be able to claim income support.


Actively seeking work l.jpg
Actively seeking work impacts

  • prove that s/he has applied for jobs, read advertisements, registered with employment agencies.

  • keep a record of all the steps s/he takes to find work, as well as copies of advertisements, and of letters s/he writes and receives about jobs.

  • have to attend the job centre regularly to show that s/he is still seeking work (see above). If a person is unable to show that s/he is actively seeking work, s/he may be able to claim income support.


Ill when claiming jsa l.jpg
Ill when claiming JSA impacts

  • An unemployed person is allowed to be ill for up to two weeks when claiming JSA.

  • S/he may be ill twice in any period of six months of claiming JSA.

  • If s/he is ill for longer or more frequently than this s/he will be refused JSA and will have to claim a benefit for sickness or disability.


Jobseeker s agreement l.jpg
Jobseeker’s agreement impacts

  • have to sign a jobseeker’s agreement.

  • a document which sets out what the unemployed person has agreed to do to find work.

  • These will be steps which s/he has agreed with an Employment Service officer at the job centre.


Jobseeker s direction l.jpg
Jobseeker’s direction impacts

  • The claimant may be given suggestions by an Employment Service officer about steps s/he can take to find work. If s/he unreasonably refuses to take these steps, s/he may be given a jobseeker’s direction.

  • This is an instruction to take certain action to help her/him find work, for example, attending a particular course, registering with an employment agency, or responding to a particular advertisement.


Jobseeker s direction80 l.jpg
Jobseeker’s direction impacts

  • If the claimant refuses to follow the jobseeker’s direction and s/he does not have a good reason for this refusal, s/he will not receive any JSA for two weeks.

  • If s/he unreasonably refuses a second time, s/he will not receive JSA for a further four weeks.

  • A person in this position may be able to claim a hardship payment, which is a reduced amount of JSA.


Attending the job centre l.jpg
Attending the job centre impacts

  • A JSA claimant will have to attend the job centre regularly to show that s/he is still available for and actively seeking work

  • her/his jobseeker’s agreement is still relevant.

  • Most claimants have to sign a declaration that they still meet the entitlement conditions every two weeks.

  • Some claimants have to ‘sign on’ more frequently.


Sanctions l.jpg
Sanctions impacts

  • A claimant will also be asked to attend advisory interviews during her/his JSA claim, when s/he may be referred to a scheme for unemployed people, or told to apply for certain vacancies.

  • If s/he fails to do this, s/he may be sanctioned A claimant can be asked to attend the job centre at any time and her/his benefit may be stopped completely if s/he fails to do so without good cause.


Sanctions83 l.jpg
Sanctions impacts

  • A claimant can be ‘sanctioned’, which means that s/he will not receive any JSA The sanction can be for between one and twenty six weeks. A claimant will be sanctioned if s/he:-

    • does not apply for a job which has been brought to her/his attention; or

    • refuses to accept a job s/he has been offered; or

    • fails to take up the job when s/he is supposed to start; or

    • fails to carry out a jobseeker’s direction; or

    • has lost her/his job through misconduct or left it voluntarily.


Sanctions84 l.jpg
Sanctions impacts

  • Sanctions can apply to training schemes and employment programmes as well as jobs.

  • For example, if a claimant does not take up one of the options under the New Deal, s/he will be sanctioned and will not receive any JSA.


Income support l.jpg

Personal allowance impacts

Weekly amount from 7.4.03

Single person (but see below for lone parents):

Aged 16 – 17

£32.90 (£43.25 in some circumstances)

Aged 18 – 24

£43.25

Aged 25 or over

£54.65

Lone parent: Under 18

£32.90 (£43.25 in some circumstances)

Lone parent: Aged 18 or over

£54.65

Couple: Both under 18

£65.30 maximum

Couple: One or both aged 18 or over

£85.75 maximum

Dependent children:

0 to September after 16th birthday

£38.50

September after 16th birthday to day before 19th birthday

£38.50

Income Support


Contribution based jobseeker s allowance jsa l.jpg

From 7.4.03 impacts

Aged under 18

£32.90

Aged under 25

£43.25

Aged 25 and over

£54.65

Contribution-based jobseeker’s allowance (JSA)


Negative income tax child tax credit and working tax credit l.jpg
Negative Income Tax ( Child Tax Credit and Working Tax Credit)

  • Child Tax Credit is a means-tested allowance that is paid to parents and carers of children or some young people who are still in education.

  • If you or your family have gross income of less than £50,000 a year and meet the other qualifying conditions, you will be eligible for some award.

  • In some circumstances, people with income over £50,000 may also be entitled to some award.


Working tax credit l.jpg
Working Tax Credit Credit)

  • is a means-tested allowance for people who are in paid employment and who meet certain other conditions, based on income and circumstances.

  • If you are a member of a couple you will need to make a joint claim with your partner. If you and your partner have income below a certain level and meet certain other conditions, you may be entitled to Child Tax Credit and/or Working Tax Credit.


Eligibility low income saving not count l.jpg
Eligibility: Low Income, Saving not count Credit)

  • The amount you receive depends on how much money you have coming into your household each year.

  • If you have any savings, they will not affect your claim. However, if you receive interest from your savings this will be counted as income and may affect the amount you receive.

  • paid by the government but are processed by the Inland Revenue.


Who can get child tax credit l.jpg
Who can get Child Tax Credit? Credit)

  • are aged 16 or over; and are responsible for at least one child.

  • child = aged under 16 or a qualifying young person up to the age of 19 who is in full-time education, or aged under 18 and finished full time education in the last 20 weeks and who has registered with the Careers service; and

  • have gross income below £50,000 a year.


Who can get working tax credit l.jpg
Who can get Working Tax Credit? Credit)

  • aged 16 or over, working 16 hours or more a week and

  • are responsible for a child or qualifying young person (If you are a woman on maternity leave and would normally work 16 hours or more a week, you can still claim Working Tax Credit); or


Who can get working tax credit92 l.jpg
Who can get Working Tax Credit? Credit)

  • are aged 16 or over, working 16 hours or more a week and have a disability for which your are receiving a qualifying benefit; or

  • are aged 50 or over, working 16 hours or more a week and have started work up to three months before you make a claim and, for the six months before starting that work have been receiving one of certain benefits; or

  • are aged 25 or over and working 30 hours or more a week.


How much child tax credit will you get l.jpg
How much Child Tax Credit will you get    Credit)

  • There is a maximum amount of Child Tax Credit you can get.

  • The amount is made up of different elements which are:-

    • a family element – which is paid to any family with responsibility for one or more children

    • a child element which is paid for each child or qualifying young person in the family.


Results of workfare l.jpg
Results of workfare Credit)

  • the evaluation literature suggests that these rules, if used intelligently and supported by effective sanctions, can help stimulate job search and serve to keep benefit claimants in touch with the labour market.

  • It is impossible at this stage to draw any definitive conclusions since most of the initiatives taken by countries are relatively recent and there are almost no rigorous evaluations of them available yet.


Some scattered evidence uk l.jpg
some scattered evidence: UK Credit)

  • combining elements of carrots and sticks, can work in terms of producing better labour market outcomes for the unemployed.

  • The UK Restart programme, which was started in 1987, can be viewed as a prototype for such strategies.

  • Under this programme, all persons unemployed for six months were obliged to attend a Restart interview at the PES. The interview assessed the individuals’ job-search behaviour and motivation and assisted them with availing of other services and programmes to help them find a job.


Workfare in uk l.jpg
Workfare in UK Credit)

  • A rigorous evaluation indicated that Restart did work and, as a result, the periodicity of Restart interviews was increased during the 1990s.

  • The recent steps taken in Denmark to introduce activation strategies have been evaluated by the Danish authorities. Madsen (1998) argues that the preliminary evidence from the evaluations suggests that the activation strategies have

  • been successful in terms of improving employment prospects for the unemployed, especially for the young unemployed.


Workfare in usa l.jpg
Workfare in USA Credit)

  • many workfare experiments were designed and operated by individuals US states in the 1980s and 1990s in advance of the 1996 welfare reform.

  • Solow (1998) reviews the rigorous evaluation evidence on the effectiveness of these workfare

  • initiatives and concludes that they did have statistically significant effects in raising the employment and earnings prospects of welfare recipients, but the effects were not large.


Workfare in usa98 l.jpg
Workfare in USA Credit)

  • Of course, as Solow recognises, one cannot generalise from the results of these individual workfare experiments to draw conclusions about the likely effects of the 1996 welfare reform.

  • There has been a sharp drop in welfare rolls since the reform, but there is an on-going debate as to how much of this decline is due to the booming US economy and how much to the policy changes.


Workfare in usa99 l.jpg
Workfare in USA Credit)

  • Research by the Administration, summarised in OECD (1999c), suggests that almost one-third of the decline in welfare rolls since 1996 can be attributed to the reform, with most of the policy-induced effect being the result of sanctions for non-compliance.

  • In sum, while it is too early to judge the effectiveness of the range of activation strategies that have been introduced by some OECD countries in recent years, the early signs are quite promising.


Workfare in usa100 l.jpg
Workfare in USA Credit)

  • It seems that a mix of carrot-and-stick elements in such strategies, combining use of active labour market policies and benefit sanctions in case of non-compliance, may well contribute to better labour market outcomes for benefit recipients.

  • However, other argues that the workfare just induce migration of unemployed from one state to another.


ad