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The sessions to be included in this panel reflect the broad research areas covered by the PEW working group. The individual papers tackle key research issues and questions from both theoretical and empirical perspectives and also combine different methods. A common focus of the papers is to develop alternatives to mainstream approaches to work and labour issues that in various ways are rooted in political economy. To this extent, they tie in with the broader aims of IIPPE.
| AUTHOR(s) | TITLE & ABSTRACT |
| Florence Lefresne and Catherine Sauviat | American and European Social Models Facing Recession |
| The global economy is facing its worst recession since the great depression that followed Wall Street’s 1929 crash. Since October 2008, 27 million jobs have been lost around the world. Unemployment rose everywhere reaching in January 2010 more than 10% of the labour force in the European Union and 9.7% in the United States of America. The US GDP fell 3.5% from January 2008 to September 2009, while it shrank by 5.1% in the EU. More than ever, the on-going crisis destabilizes the institutional arrangements and social compromises that have historically underpinned the different social models. Public deficits and debts are dangerously increasing after huge bank rescue plans and following recovery plans even if their positive effects on economies seem rather limited. Unemployment threat put employees’ incomes and conditions of work under pressure, while welfare systems are more and more called into question. In such a context, international institutions and more specifically the EU ones seem unable to shape coherent, credible and coordinated solutions to find a sustainable way out of the recession. Every country tries to limit its own loss of competitiveness and to preserve to some extend its national social stability. Even if employment losses and unemployment rise seem to be universal issues, their levels and rhythms remain very different in each country though highlighting the long-running specificities of the social models’ institutions. Social protection system, as well as public sector can be effective shock absorbers and on the opposite labour market flexibility can exert important pro-cycle effect. | |
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| Gary Slater and Peter Nolan | Manual work matters |
| Large claims have been made about the significance of globalisation and new information technologies for the future of work. Commentators have emphasised radical shifts in the international division of labour; pointed to a precipitous decline of material production in the advanced Western economies; and highlighted revolutionary changes in the forms, structure and management of work. There are of course many nuances in the literature. Some writers give greater emphasis to the micro effects of the wider diffusion of information technologies, while others, taking a macro perspective on the changing international division of labour, stress the globalisation of a new information order. The boldest accounts attempt to link, seamlessly and usually unconvincingly, macro international developments to micro changes in the detailed conception and execution of work. Bringing forward new longitudinal data on occupations and work in Britain, 1951-2001, this paper argues that the contemporary social division of labour cannot adequately be explained by appealing to the abstract forces of global markets and technology. Conventional labour market theory highlights the determining effects of `horizontal’ supply and demand forces. Choice at the margin between work and leisure determines supply; productivity at the margin determines demand. Skill biased technological change is predicted to shift the balance between demand and supply in favour of more educated, skilled labour power. Our analysis exposes the limitations of this a-historical account. The character of work and occupations is shaped in important ways by specific material and historical conditions. These conditions do not have even and universal effects. | |
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| Lucia Pradella | Keynes and Marx in the face of the crisis |
| In the most famous of his Essays in Persuasion – ‘Economic Possibilities for our Grandchildren’ – in the wake of the financial and production crash of 1929, Keynes affirmed, against the ‘economic pessimism’ which was spreading, that the crisis was only a transitory phase, to be followed, in Western countries, by a period of prosperity and declining working hours. ‘Within a hundred years’, said Keynes, the technological forces created by capitalism would bring (Western) ‘humanity’ into an ‘age of leisure and abundance’, towards a ‘destination economic bliss’. This paper shows that the basic trends of the system of working hours and the changes in work organization in the course of the twentieth century – also considering only Western countries – clearly deny Keynes’ prophecy and confirm, on the contrary, the validity of the law of the progressive impoverishment of the working class exposed by Marx in Capital. It argues, moreover, that this law must be considered (in all its aspects) on a global scale, since Marx saw British capitalism as a global system which included also its periphery. The paper also argues that the current crisis is not going to open a phase of ‘prosperity and peace’ nor to reverse the stronger drive to liberalize working time, lengthening and intensifying it anew, as has taken place since the mid–seventies. If ‘neoliberal capitalism’, in order to face the crisis of mid-70s, has increased the exploitation of the working class worldwide and has globalised poverty and war – creating the conditions for the today’s crisis – the current attempts to overcome it proceed in the same direction: redoubling efforts to increase the exploitation of the working class and reinforcing the vicious circle of overwork and under/unemployment exposed by Marx. Overall, these processes reveal ever more clearly that alternatives cannot take place at an institutional and national level, but must be global and systemic. | |
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| AUTHOR(s) | TITLE & ABSTRACT |
| Elena Papagiannaki | Rising Unpaid Overtime: A Critical Approach to Existing Theories |
| In recent years there has been observed the phenomenon of employees working long hours without been paid. This trend is quite strong during the last fifteen years but there is ample evidence that it is a tendency generated even before. While there have been various explanations why employees work paid overtime, there is little theoretical interpretation of working unpaid overtime. This essay tries to analyse critical the existing interpretations and add some new explanations. We will try to pinpoint the main reasons and explain why this phenomenon takes place especially in three last decades. Working time was always a very important part of economic analysis. Till now scholars were trying to explain the causes of working time reduction. However, in recent years the opposite tendency appeared. Working time is observed to be increased. Consequently, all these schools of economic thought which argued that working time can always decrease face a theoretic deficiency. In particular, not only working time extension appeared, but also the phenomenon of unpaid overtime. These theoretic deficiencies stimulated, especially mainstream economics to find some new approaches for the explanation of this phenomenon; theories of differed compensation, human capital, Pareto Improvement and Signalling emerged to explain unpaid overtime. Every theory mentioned above is based on assumptions of neoclassical economic analysis. In our critique, we do not only detect an analytical lacunae, but also an empirical one. Every approach analyses labour as a simple input in production process and neglects its social character. Moreover, every of these theories avoid to cast doubts on the basic neoclassical assumption that labour wage is the reward of labour contribution generally. Following the foundations of Marxist analysis, we argue that working time extension generally and unpaid overtime particularly are forms of absolute surplus value extraction. In addition we observe this phenomenon especially in recent years for some particular reasons. The falling tendency of rate of profit, which led to the economic crisis of 1973, pressed capitalists to implement radical changes in production process; changes in production organisation, to introduce informatics technology in the sphere of exchange. Additionally to them, the developing tertiary sector of economy are structural factors which facilitated capitalists to extract more surplus value. Furthermore, the so called capitalist restructuring, which was described above, was also accompanied by institutional changes too; the labour market was also deregulated having its impact on working time extension, that we can observe nowadays. Moreover, unions weakening took place during last years due to previous structural changes, social and historical reasons. This fact led workers to a situation with restricted bargaining power. Consequently, employees cannot demand effectively a possible working time reduction or to rewarded for the labour which have offered. All these factors played a determinant role in working time extension and particularly in the rising phenomenon of unpaid overtime. | |
| [Paper forthcoming in a revised form in special issue of the International Journal of Management Philosophy and Concepts 2011 vol. 5(4)] | |
| Grigoris Zarotiadis | Rediscovering the Labor Demand and Supply: Considerations for a multiple equilibrium labor market |
| Labor market is of crucial importance for the neoclassical macroeconomic theory and neoliberal policy implications. Flexicurity considerations, liberalization of lay offs, real wages reduction as a mean to create lobs and to increase an economy’s competitiveness, all these rely on the specific paradigm for the functioning of labor market. Yet, how reliable is this theory? Why labor-supply is positive sloped? Why labor-demand is negatively sloped and what are the deeper reasons for its specific causality? In the present paper, our main focus is first to analyze critically the neoclassical labor market and to reveal the real sociopolitical ambitions behind irrational, unrealistic, theoretical assumptions. Next, we proceed with a heterodox multiple equilibrium labor market analysis and relevant theoretical and policy implications.
a more careful discussion of the causality in the functional relationships. | |
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| Ioannis Vardalachakis, Nelly Pavlidou and Persefoni Tsaliki | Technological Change, Labour Skills and Unemployment |
| The analysis of the effects of machinery into the production process and by extension labour process has always been prominent in economic theory. Though, the question on how the implementation of new technologies affects not only the level of unemployment but also the desired level of labour qualifications and skills remains an open debate in economic analysis. The reason is that the dual role of technological change which at the same time deteriorates and advances labour skills has given rise to disagreements about how unemployment is evolved over time in an economy and it is decomposed to the various groups of labourers. The present paper attempts to contribute into this debate about the effects of machinery onto the production and labour process. It presents and compares the mainstream “labour market clearing mechanism” and “human capital” argument with Marx’s analysis according to which capitalist competition imposes the presence of the reserve army and the over time deskilling of labour power | |
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| AUTHOR(s) | TITLE & ABSTRACT |
| Praveen Verma | Political Economy of Employment: Case Study of Rural Employment in India, Social Composition and Exclusion |
| The National Rural Employment Guarantee Act, 2005 (now renamed in 2010 as Mahatma Gandhi National Rural Employment Guarantee Act, (henceforth MNREGA)) was implemented after the huge pressure from members of Civil Society groups, progressive political parties, grass root activists etc., with aims of enhancing livelihood, security of households in rural areas of India by providing at least hundred days of work to each household of rural poor. This Act proposes some fundamental principles like - legal rights, universal entitlement, participatory approach and transparency. It is a unique Act as it confers a right to demand work for those who need it. This demand is met at the worksite, but the process of implementation of the schemes under this Act across the country poses some challenges. On the one hand there was a huge pressure and unwillingness to pass this Act in the Indian Parliament as is evident in the Controller and Auditor General’s Report (called CAG report, which has high stake in policy making in India), which mentions that MNREGA is a complete failure and wastage of the money collected through tax payers. On the other hand there were people who supported and propagated the idea of full employment, its legal entitlement as well as food security and wanted the implementation of this Act. The final Act was derived through the multi-dimensional assortment of arguments from both the opposing and the supporting groups. | |
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| Satoshi Miyamura | Collective Bargaining Institutions in Indian Industry: A Comparison of Mumbai and Kolkata |
| The paper examines labour-management relations in Indian industries to provide an alternative analysis of labour market reform priorities. It argues that collective bargaining institutions reflect the balance of power at the macro level, and in turn affect the historically specific ways in which industrial development proceeded in India.
Using a combination of micro level data collected from field research in Mumbai (Bombay) and Kolkata (Calcutta), complemented by secondary evidence on the wider social and historical context, the reproduction and transformation of different types of LMIs are explained in terms of their location within changing patron-client politics. The paper challenges the common argument that industrial performance in Mumbai was better because it enjoyed professional company-based unions compared to unions organised at industry level and affiliated to political parties in Kolkata. Our interpretation is that the causality is at least partially in the opposite direction, with dynamic regions providing strong incentives for unions to organise to seek company based ‘rents’ rather than to gain from political redistribution that are more attractive in less industrially dynamic regions. This approach contrasts with some mainstream theories that focus on informational and transaction costs and policy failures as the main determinants of LMIs. Many mainstream models that inform policy assume that LMIs precede growth and misleadingly treat them as ‘exogenous’ variables. An important implication of the paper is that LMIs are ‘endogenous’ variables and therefore a broader set of reforms are required for sustaining economic growth. | |
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| Olivier Giraud and Arnaud Lechevalier | Breaking up Employment Norms in Germany and France |
| Our paper compares the dynamics of employment norms in France and Germany from the late 80’s onwards. Employment norms include in our view the implementation of labour, its remuneration, and skills, as well as the durability of employment. We analyze employment norms in terms of policy frame, connecting the struggle over discursive hegemony in the public sphere, the attempt by various policy actors to influence and frame actors’ ideas and identities and, finally, the project of influencing the policy process itself. Understood as such, policy frame not only help us to analyze the dynamics of legal regulation, but shed as well light on the actual transformation of employment relations at firm level. In both France and Germany, changes of employment norms are closely related to the focus on the increase of employment rate that has formatted the policy agenda in most European countries since the mid 90’s. The conditions of this common strategy must eventually be analyzed in the context of both the French and the German employment regimes. Employment regimes are related to three interconnected dimensions (Lallement, 1999): the influence of state and policy regulation, the dynamic of power relations in the domain of industrial relations, as well as the market and organization structures in the various sectors of the economy. In our first section, we elaborate this theoretical approach. In the second, we make use of it in order to characterize comparatively the French and German employment regimes up to the late 80’s. Our third section is dedicated to a condensed analysis of the recent transformation of both employment regimes in both countries. It focuses on the unbalanced reallocation of the global amount of labour throughout society, and on the raise of both employment volatility and working-poors, wich is a matter of concern especially from a gender perspective. Our last section is dedicated to the mechanisms of change of employment norms, in relation to the transformation of the employment regimes of both countries. The notion of policy frame provides for that task most valuable analytical ground. | |
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