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Selective Flexibilization and Deregulation of the Labour Market: The German Answer to Increased Needs for Employment Flexibility and Its Consequences for Social Inequalities

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Globalized Labour Markets and Social Inequality in Europe

Abstract

Stable and continuous employment is an important source of social coverage, social participation, and social acceptance for individuals in the so-called conservative German welfare statemodel (Esping-Andersen and Regini, 2000). Not only does the current income of an individual determine his or her access to goods and services, but also in the contribution-based German social security system the individual’s employment history has a long-lasting effect on the level of welfare state support in case of non-employment. For instance, the amount of pension received is calculated accumulatively based on the whole employment history of the individual. The level and length of time that support is given in case of unemployment depends on the previous employment situation. Even today, after the implementation of the so-called Hartz Reforms, those unemployed people who have been previously regular contributors to social insurance receive higher state benefits than those who have been unemployed for a long time or have never been employed. Thus, access to the labour market and to stable employment is a core characteristic for understanding social inequalities and the risk of social exclusion in Germany.

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© 2011 Sandra Buchholz and Kathrin Kolb

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Buchholz, S., Kolb, K. (2011). Selective Flexibilization and Deregulation of the Labour Market: The German Answer to Increased Needs for Employment Flexibility and Its Consequences for Social Inequalities. In: Blossfeld, HP., Buchholz, S., Hofäcker, D., Kolb, K. (eds) Globalized Labour Markets and Social Inequality in Europe. Palgrave Macmillan, London. https://doi.org/10.1057/9780230319882_2

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