Download eBook for Free

Full Document

FormatFile SizeNotes
PDF file 1 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Summary Only

FormatFile SizeNotes
PDF file 0.2 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

The aftermath of the economic crisis of 2008 has undone much of the progress on improving employment and growth in Europe over the last 20 years. Vulnerable groups in particular remain at risk of poverty and not being in employment and education, especially in light of trends that have shaped the labour market including changes in educational requirements and the changes in work.

The insights from our analysis and review form a useful input into developing European policy discussions. The review concludes that policy makers should focus more on enabling social policy that allows individuals to achieve their full productive potential and participate in the labour market as a complement to welfare approaches such as social insurance. Evidence from Nordic countries shows that the increased use of enabling social interventions can make an effective contribution to mitigating against social risks such as sustained poverty and long-term unemployment. Moreover, as the review highlights these targeted policies do not need to impact other macroeconomic outcomes or other groups.

European action is important. Improving labour force market participation and addressing income inequality across Europe requires a concerted strategy to define the principles in employment and social policy and values and mechanisms that can facilitate effective policy coordination and exchange. It is obvious that Member States could learn from each other given the differences in income inequality and labour force participation rates in Europe. Further improvements also require better information on which particular policy responses are effective.

Research conducted by

The research described in this report was conducted by RAND Europe.

This report is part of the RAND monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND monographs undergo rigorous peer review to ensure high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.