Labor Market Essay Example

and, in particular in drafting legislation governing the labor market. During corporate restructuring where the changes involve layoffs, the unions recognizes the necessity in order to protect the long-term competitiveness of the firm.

This has clear benefits -? because it means that the interest of the union is not only the short-term interest of the very group they represent, but the longer-term interest of wider society and they serve an important economic value: solidarity. In contrast, in the U. S. Del unions are typically weak and sector-specific. In other European countries, unions often are not as centralized and therefore can get stuck in adamantly defending a certain group or interest to the severe detriment of overall employment. Thus, contrary to the prevailing stereotype, centralized unions and strong welfare systems -? if set up the right way -? work hand in hand to promote a society openness to structural change.

In other words, while the laws make it is easy for companies to shed workers and implement transformation business oodles, employees are supported by generous social welfare programs.

Risk- taking on a society-wide basis: Another dimension that fosters risk-taking on a society-wide basis is what the Swedish historian Lars Tragedy calls "Nordic statistic individualism. " The basic idea is that individuals who are free and secure are also more likely to innovate, experiment and take risks. In Contrast to the American model, which also emphasizes individualism, in the Nordic countries, every person has a positive (and positively acknowledged) individual relationship with the state.

Accordingly, the role of the state and government is viewed not as an intrusion into individual freedom, but as an enhancement.

That added

relationship makes individuals less dependent on family or other close relations. A woman can decide to have a baby in the full trust that society will take care of her needs regardless of what her family thinks about it. This assurance provides far-reaching individual freedoms: It supports a single woman who decides to have a baby just as much as a gay couple that decides to adopt. In addition, generous child care benefits also dead to considerably higher birth rates than in most of the rest Of Europe Pre- distribution, not redistribution In the early 19005, the Nordic societies were among the poorest in Europe.

Then, through a number of reforms, arrangements and influential civic movements, they embarked on a path of development to become prosperous together.

The stark difference lies in how wealth is created and distributed. A lot of countries such as the Asian tiger economies -? got prosperous first and then started thinking of redistribution. In other words, first wealth reaction, even if it is unevenly distributed, and then a focus on the smoothing of differences.

But because of these built-in disparities of these economies, it has been harder to arrive at an equitable solution In contrast, thanks to their long history of fair distribution from the very start of the modern economy, Nordic countries have had a very deep and fundamental level of social cohesion.

One recent study has shown, for instance, that correlation between a child's income with his parents' is much higher in the I-J than in the Nordic countries. What this essentially means that In the Nordic countries, you don't need to be borne rich in order to

prosper.

In other words, social mobility and equality of opportunity go hand in hand. Where there is high inequality, social mobility declines, observed even in the United States over the past few decades.

Normally held belief is that high taxes and a large public sector make a country less competitive. But in the wake of the European crisis, countries In best shape in Europe actually had quite a high share of state spending relative to GAP. In contrast, most of the countries in the most difficult Greece, Portugal, Spain, Ireland -? all have quite low levels of public spending relative to GAP.

This makes us ask, why is the Nordic method a success? It is primarily because the Nordic governments are honest and transparent.

The governments are subject to rigorous scrutiny; for example, in Sweden everyone has access to all official records. Two other important qualities add to this: pragmatism and tough-mindedness. On discovering that the old social democratic consensus was no longer working they let it go with remarkably title fuss and introduced new ideas from across the political spectrum.