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Employment and Social Developments in Europe 2014
Chart 45: Real growth of social protection, Box 3: The multiple functions
by function and decomposition, EU -27 (2008–11) of childcare
Social exclusion and housing There is a growing awareness of the cru -
Family
9 Unemployment benefits cial importance of addressing early child
Sickness and disability
92% accounted for by the increase Old age and survivors development in a positive way. Several
7 in average family expenditure per child long-term studies have highlighted the
benefit of quality childcare on child
5 99% accounted for by the increase
in the no. of unemployed development through into adulthood
3 87% accounted for by the increase (see European Commission 2014e) —
% in the no. of over 65 year-olds something that is seen as particularly
1
important for the most disadvantaged.
-1
The availability, the quality and the
-3 61% (in 2008) and 66% (in 2009) 94% accounted for by a decrease flexibility of childcare is also seen to
accounted for by the increase
in average expenditure per unemployed
in average expenditure for over 65 year-olds influence the employment participation
-5
2008 2009 2010 2011 decisions of parents. Widely available
full-day and after-school care in the
Source: ESSPROS, elaborations from European Commission, 2013a. Nordic countries and France have made
Notes: shaded boxes correspond to changes in expenditure not due to socio-demographic factors. it easier for parents to work full-time if
they wish, whereas in Austria, Germany
or Luxembourg, kindergartens typically
Chart 46: Annual change in real public social expenditure, operate short days or have long breaks
by cash and in-kind benefits that may not be compatible with full-
time work.
6
5 In kind Enrolment hours can also have particu-
Cash
lar implications for female participation
4 in the labour market. In those Mem -
3 ber States where more women work
shorter part-time hours, the offer of a
2
% formal care system is also lower. Never -
1 theless, as enrolment can contribute to
0 the achievement of a work-life balance
and overcome the trade-off between
-1
inactivity and part-time employment,
-2 it can still be seen as preferential to
2001-05 2008-12 2006 2007 2008 2009 2010 2011 2012 no enrolment at all. On the other side,
Source: National Accounts. longer enrolment hours of care tend,
in practice, to be matched with longer
working hours of females.
4.3. Investing in children Investments in childcare are intended
and families, young and to help reconcile the working and fam- Finally, an expansion of childcare ser -
working-age population ily life of parents, while improving future vices contributes to increasing formal
educational performance, particularly of employment opportunities for women.
Social investment as a broad policy per - disadvantaged children. Investments in
spective emerged in the 1990s with the education, while primarily intended to of public employment services, with such
aim of ensuring the sustainability of the enhance the quality of lives of future measures having been found to have a posi -
welfare state in the face of new social risks generations, are also expected to raise tive impact as reflected in higher employ-
and changing economic needs and chal - skill levels and improve employment out- ment rates — see Kluve (2010).
lenges. The key aims of social investment comes, while reducing inequality and pov -
expenditure are seen to be to promote erty. Active labour market measures aim Van Kersbergen and Hemerijk (2012) con-
active employment and social participation, to improve and maintain employability of sider that, in the period leading up to the
social cohesion and stability (Van Kersber - both the employed and the unemployed. recession, a number of European welfare
gen and Hemerijk, 2012) based on support systems had been developing in the direc-
for the development of human capital and From a demand-side perspective, they tion of the social investment model, and
strengthened family links to the economy also provide a positive stimulus by reduc - that this had resulted in increased labour
through employment (Vanderbroucke et al., ing costs of labour, mitigating risks for market participation. At the same time,
2011). As such, the policy focus has been employers of recruiting new workers, however, this focus on activation may have
on education, active labour market poli - and providing training support as well as distracted attention away from policies
cies, early childhood education, preventive financial incentives to the self-employed. designed to cover social risks, with the fur-
healthcare, health and safety at work, and Even in times of weak labour demand, they ther risk that the recession could endan -
retraining and lifelong education (see the may increase employability, help the unem - ger the continuing progress of the social
Social Investment Package). ployed to remain active with the support investment model. Some authors suggest
66
Chart 45: Real growth of social protection, Box 3: The multiple functions
by function and decomposition, EU -27 (2008–11) of childcare
Social exclusion and housing There is a growing awareness of the cru -
Family
9 Unemployment benefits cial importance of addressing early child
Sickness and disability
92% accounted for by the increase Old age and survivors development in a positive way. Several
7 in average family expenditure per child long-term studies have highlighted the
benefit of quality childcare on child
5 99% accounted for by the increase
in the no. of unemployed development through into adulthood
3 87% accounted for by the increase (see European Commission 2014e) —
% in the no. of over 65 year-olds something that is seen as particularly
1
important for the most disadvantaged.
-1
The availability, the quality and the
-3 61% (in 2008) and 66% (in 2009) 94% accounted for by a decrease flexibility of childcare is also seen to
accounted for by the increase
in average expenditure per unemployed
in average expenditure for over 65 year-olds influence the employment participation
-5
2008 2009 2010 2011 decisions of parents. Widely available
full-day and after-school care in the
Source: ESSPROS, elaborations from European Commission, 2013a. Nordic countries and France have made
Notes: shaded boxes correspond to changes in expenditure not due to socio-demographic factors. it easier for parents to work full-time if
they wish, whereas in Austria, Germany
or Luxembourg, kindergartens typically
Chart 46: Annual change in real public social expenditure, operate short days or have long breaks
by cash and in-kind benefits that may not be compatible with full-
time work.
6
5 In kind Enrolment hours can also have particu-
Cash
lar implications for female participation
4 in the labour market. In those Mem -
3 ber States where more women work
shorter part-time hours, the offer of a
2
% formal care system is also lower. Never -
1 theless, as enrolment can contribute to
0 the achievement of a work-life balance
and overcome the trade-off between
-1
inactivity and part-time employment,
-2 it can still be seen as preferential to
2001-05 2008-12 2006 2007 2008 2009 2010 2011 2012 no enrolment at all. On the other side,
Source: National Accounts. longer enrolment hours of care tend,
in practice, to be matched with longer
working hours of females.
4.3. Investing in children Investments in childcare are intended
and families, young and to help reconcile the working and fam- Finally, an expansion of childcare ser -
working-age population ily life of parents, while improving future vices contributes to increasing formal
educational performance, particularly of employment opportunities for women.
Social investment as a broad policy per - disadvantaged children. Investments in
spective emerged in the 1990s with the education, while primarily intended to of public employment services, with such
aim of ensuring the sustainability of the enhance the quality of lives of future measures having been found to have a posi -
welfare state in the face of new social risks generations, are also expected to raise tive impact as reflected in higher employ-
and changing economic needs and chal - skill levels and improve employment out- ment rates — see Kluve (2010).
lenges. The key aims of social investment comes, while reducing inequality and pov -
expenditure are seen to be to promote erty. Active labour market measures aim Van Kersbergen and Hemerijk (2012) con-
active employment and social participation, to improve and maintain employability of sider that, in the period leading up to the
social cohesion and stability (Van Kersber - both the employed and the unemployed. recession, a number of European welfare
gen and Hemerijk, 2012) based on support systems had been developing in the direc-
for the development of human capital and From a demand-side perspective, they tion of the social investment model, and
strengthened family links to the economy also provide a positive stimulus by reduc - that this had resulted in increased labour
through employment (Vanderbroucke et al., ing costs of labour, mitigating risks for market participation. At the same time,
2011). As such, the policy focus has been employers of recruiting new workers, however, this focus on activation may have
on education, active labour market poli - and providing training support as well as distracted attention away from policies
cies, early childhood education, preventive financial incentives to the self-employed. designed to cover social risks, with the fur-
healthcare, health and safety at work, and Even in times of weak labour demand, they ther risk that the recession could endan -
retraining and lifelong education (see the may increase employability, help the unem - ger the continuing progress of the social
Social Investment Package). ployed to remain active with the support investment model. Some authors suggest
66
