Ioannis Katselidis

From Beveridge to "Flexicurity": Old and Recent Labour Policies

The modern labour market policy of flexicurity has been adopted as a leitmotiv of the European employment strategy and the revised Lisbon Strategy for Growth and Jobs. This paper examines the two main influences behind the concept of flexicurity, namely the New Keynesian active labour market policies and the early ideas of William Beveridge. In particular, we contend that the flexicurity agenda originated from the New Keynesian employment policy agenda, which incorporates active measures for employment, aiming at both flexibility and security in the labour markets. These ideas and proposals can be traced back to William Beveridge’s work on labour market policy. Beveridge proposed a progressive and forward-looking labour policy, which combined flexibility and security together with active labour market measures, without disregarding the weaker labourers’ groups (e.g. casual workers). Thus, the paper shows that his policy proposition resembles the modern policy concept of flexicurity in such a degree that we can characterize Beveridge as the precursor of the flexicurity phenomenon.

Technological Effects on Wages and Labour: Classical and Neoclassical Ideas

The introduction of new technology may have significant effects on the level of employment and the real wage rate; effects that have received considerable attention even from the economic thinkers of the classical period. This paper aims to analyze and evaluate the various views and arguments of early classical and neoclassical economists concerning the technological effects on wages and employment. On the one hand, the economists of the early decades of the 19th century (mainly between 1800 and 1840) had recognized and analyzed many of the effects of technology on labourers’ welfare. On the other hand, early neoclassical theorists of the period between 1890 and 1935 tried to expand on the classical views and to develop their own theoretical arguments, based on new perceptions like the marginal productivity theory. The main conclusion drawn is that most of early classical and neoclassical economists recognized and specified the temporary adverse effects of new technology on labour (e.g. short-run unemployment), but, at the same time, they argued for the beneficial long-run consequences of technological progress on labourers’ welfare.