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Welfare Reform on the Web (March 2002): Social Security - Overseas

SCHRÖDER HINTS AT BOOST FOR LOW-PAID JOBS

H. Williamson

Financial Times, Dec. 28th 2001, p.4

Gerhard Schröder, the German chancellor, has indicated the government will introduce labour market changes in the New Year to encourage unemployed people to take up low-paid jobs. With unemployment likely to exceed the 4m mark early in 2002, Mr Schröder, who has until now resisted introducing labour market measures said the government must "discuss seriously" how to encourage people to take up jobs with a monthly salary of between DM630 (£200) and DM1,700 (£540)

THE STRATEGY OF AN ACTIVE LABOUR MARKET POLICY: AN ANALYSIS OF ITS DEVELOPMENT IN A CHANGING LABOUR MARKET

M. Sihto

International Journal of Manpower, vol. 22, 2001, p. 683-706

Author notes that the strategy of active labour market policies (ALMP) use has changed over time but argues that there is a core content in common between their role in the Swedish model of the 1950s and their current use in countries with mass unemployment. Argues that the core involves selectivity (targeting) and supply side measures to improve labour market functioning (thereby boosting employment and reducing inflation). ALMP have been used in periods of mass unemployment as a mechanism for reintegrating the long-term jobless into the labour market and are currently in vogue as a counter to welfare dependency.

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