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The New Palgrave Dictionary of Economics pp 13829–13843Cite as

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Transitional Labour Markets: Theoretical Foundations and Policy Strategies

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Abstract

In a normative perspective, the theory of transitional labour markets (TLM) considers the labour market as a social institution supporting and ensuring ‘full employment’ not only in terms of income security, particularly in times of unemployment (freedom from want), but also in terms of the capability to freely choose and to develop a career over the life course. This capability should equally hold for men and women, and it should also include unpaid but socially highly valued phases of work (freedom to act). TLM theory also argues for a new analytical approach to study the dynamics of labour markets: instead of concentrating on stocks (e.g. employment or unemployment rates), flows should come to the fore, in particular transitions from one employment status to the other, including combinations of work and education or work and unpaid care. This entry elaborates on these analytical and normative foundations of TLM theory and develops respective policy strategies to manage social risks related to the main critical life course transitions.

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Authors
  1. Günther Schmid
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    Iain Begg

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Schmid, G. (2018). Transitional Labour Markets: Theoretical Foundations and Policy Strategies. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_3050

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