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ISSA: European Regional meeting Oslo, May 15.-16-2007 Inclusion in Working Life. General Conclusions And some thoughts about the way forward. Kåre Hagen Norwegian School of Management. The need to turn long historical trends Reconciling microeconomic and macrosocial logics
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ISSA: European Regional meetingOslo, May 15.-16-2007Inclusion in Working Life General Conclusions And some thoughts about the way forward... Kåre Hagen Norwegian School of Management
The need to turn long historical trends • Reconciling microeconomic and macrosocial logics • Redesigning the institutions for collective action • What is attractive work – for elderly in the future? • Welfare reform: Rebuilding the ship while sailing!
1 Turning history around... • The mental map of workers, voters and citizens • FROM work before welfare (as reward: non-work, free time) • TO welfare in and at work • BUT what if people have other plans of life?... • The way we think of "health" • FROM diagnosis as a right to labour market exit (and a social wage) • TO diagnosis as a guidance to how work contracts should be rearranged • BUT How to make the medical profession part of this solution? • (Do we have) A modernized concept of social justice? • FROM the fairness of exit through earned rights, age and bad luck • TO fairness as equal right to individualized opportunities in the labour market • BUT what about the class gradient in health, skills and productivity?
2 Micro-logics and social outcomes • It takes two to tango: Willingness and capacity to work does not increase employment in a market for labour unless labour costs equals productivity. • In the long run, firms cannot be expected to pay for more than they get. Should the risk of taking on a social responsibility be insured by the welfare state? • DILEMMA Public policies to promote and protect job opportunities (for low-productive workers) must address the market for labour as a whole. Companies, at best, care only for their own employees. • What are the crucial conditions for companies, to see it in their own interest, to increase the number of low-productive employees? Should the social wage be paid as a wage subsidy?
3 Modernise decision making • "No single quick fix is available". Single program, top-down reform, will not be sufficient. • Legislators: Integrate income insurance and social work. All nuts and bolts in one tool-box! • Social partners: Broad participation is necessary to transform disability schemes into employment promotion. • Broaden the number of stakeholders: Professionals must be regarded not as veto-players but as part of the solution. • Norms against free-riding is needed • Firms: Competitive advantage through non-responsible behaviour • Workers: Recourse to "I’m too sick to work" • Social class: The power of upper strata behaviour!
4 What makes work attractive? • Much more solid knowledge on push and pull is needed! • The relative importance of wages versus other qualities • In different occupational groups and social strata • What are the good combinations of type of work and what medical impairment within different occupations? • What do work compete with for different individuals, houshold types and generations? • Are there limits to "customized jobs": Costs and stigma?
5 What are the success factors? • All are looking for the list – But we’re not there yet!! • Some common denominators seem to surface... • Economic incentives are important, but works in interaction with other factors, primarily of social and cultural nature. • The focus of public attention, policies and reforms should be on the workplace. • Policy instruments should be coordinated, and (re-)designed to mobilize the (remaining) capacities to work of the individual. • Doctors should be employed in the role more of advising individuals and employers as to what work can be done, and less of what cannot be done. • But also; critical knowledge is missing • Increased participation among elderly: Reform-effects vs. cohort-effects? • What happens to those who get off disability benefits? • What are the limits to corporate social responsibility?