The crisis has deepened pre-existing concerns regarding low-wage and non-standard employment. Countries where unemployment increased most strongly during the crisis period also saw part-time employment increasing, particularly involuntary part-time work. With involuntary part-time workers, as a particular group of underemployed, facing especially high poverty rates, this was accompanied by an increase, on average, in the poverty risk associated with working part-time. However, this was not reflected in a marked increase in the overall in-work poverty rate because full-time work remains dominant and its poverty risk did not change markedly. The household context is of the essence when considering policy implications.JEL codes: I32, I38, J21, J22, J68, R28
The exceptionally high union density rates in Denmark, Finland and Sweden are attributed to a particular form of voluntary unemployment insurance, known as the Ghent system. Heavily subsidized by the state and administered by union funds, it strongly motivates workers to become union members. Belgium has a partial Ghent system: while unemployment insurance is compulsory, trade unions retain an important role in the provision of benefits. Belgian union density is at an intermediate level; but as in other Ghent countries, its level is currently higher than in the 1970s. This article argues that the Belgian institutional set-up provides stronger incentives for manual workers in industry with lower educational attainment and a past unemployment record. In Denmark, Finland and Sweden, the Ghent system recruits workers across different occupations and educational levels. However, its appeal seems to have lessened over recent years, particularly among younger workers.
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