The Politics of Job Creation in Economic Crisis

PREFACE ­ 13
ACKNOWLEDGEMENTS ­ 22

CHAPTER 1 INTRODUCTION ­ 25

CHAPTER 2 REVIEW OF LITERATURE ON ALMPs ­ 31

2.1 Concepts of ALMPs 31
2.1.1 The Origin and Concepts of ALMPs 31
2.1.2 Measures and Scope of ALMPs 32
2.1.3 Two Pathways of ALMPs: High Road or Low Road? 34
2.2 Theoretical Approaches to ALMPs 37
2.2.1 Interest-Based Approaches 38
2.2.2 Institutionalist Approaches 40
2.2.3 Idea-Oriented Approaches: Coordination & Diffusion Theory 43
2.2.4 Analytic Framework 45

CHAPTER 3 RESEARCH DESIGN ­ 49

3.1 Hypotheses and Method 51
3.1.1 Hypotheses 51
3.1.2 Method 56
3.1.3 Datasets 60
3.2 Case Study 63

CHAPTER 4 TRENDS AND CHANGES OF EXPENDITURE OF ALMPs ­ 67

4.1 Trends and Changes in Expenditure of ALMPs 67
4.1.1 Welfare Regimes and Expenditures of ALMPs 67
4.1.2 Expenditure of Training 71
4.1.3 Public Employment Services and Employment Incentives 73
4.1.4 Direct job creation and Start-up incentives 76
4.1.5 Trends of ALMPs within Welfare Regimes 80
4.2 Determinants of ALMPs 84
4.3 Summary 91

CHAPTER 5 SWEDEN: ECONOMIC CRISIS AND ALMPs ­ 97

5.1 Introduction 97
5.2 Economic Crisis in Sweden 99
5.2.1 Pre-2008 Economic Crisis: Formation and Change of The Sweden model 99
5.2.2 2008 Economic Crisis 109
5.3 Responses to the Economic Crisis 112
5.3.1 Political Responses 112
5.3.2 Economic Responses 115
5.3.3 Labor Responses 120
5.4 Labor Market Policies for Job Creation 128
5.4.1 ALMPs in the 2008 global economic crisis 128
5.4.2 Main Measures of ALMPs 133
5.4.3 Labor Market Policies on Youth Unemployment 140
5.4.4 Job Policies for Immigrants 144
5.4.5 Trends and Changes of ALMPs 148
5.5 Summary 152

CHAPTER 6 GERMANY: ECONOMIC CRISIS AND HARTZ REFORMS ­ 155

6.1 Introduction 155
6.2 Economic Crisis in Germany 156
6.2.1 Pre-2008 Economic Crisis 156
6.2.2 The Great Recession and the 2008 Economic Crisis 159
6.3 Responses to the 2008 Economic Crisis 162
6.3.1 Political Responses 162
6.3.2 Economic Responses 166
6.3.3 Labor Responses 167
6.4 Labor Policy for Job Creation 170
6.4.1 Policies for youth Job Creation 170
6.4.2 Hartz Reforms: Welfare-to-Work Reforms in Germany 173
6.4.3 Youth Guarantee and Job Training System 188
6.4.4 Evaluations of the Hartz Reforms 192
6.4.5 Trends and Changes of ALMPs 196
6.5 Summary 200

CHAPTER 7 KOREA: ECONOMIC CRISIS AND JOB CREATION POLICIES ­ 205

7.1 Introduction 205
7.2 Economic Crises in Korea: Causes and Progress 207
7.2.1 The 1997 IMF Economic Crisis 207
7.2.2 The 2008 Global Economic Crisis 209
7.3 Responses to the Economic Crisis 212
7.3.1 Political Responses 212
7.3.2 Economic Responses 218
7.3.3 Labor Responses 221
7.4 Labor Policies for Job Creation 225
7.4.1 IMF Economic Crisis and Expansion of Employment Insurance System 225
7.4.2 The 2008 Global Economic Crisis and Changes in Job Policy 230
7.4.3 Trends and Changes of ALMPs 248
7.5 Summary 251

CHAPTER 8 CONCLUSION ­ 255

8.1 Analytic Results of Trends and Changes on ALMPs 256
8.2 Findings of Case Studies on the Research Puzzle 259
8.3 Comparing Analysis of Job Policies in the 2008 Economic Crisis 263
8.4 Politics of Job Creation and Policymaking 268
8.5 Theoretical Implications 271

APPENDIX A Summary of Variables ­ 278
APPENDIX B OECD Classification of Labor Market Programs ­ 279

REFERENCES ­ 281
INDEX ­ 293

Jong Sun Lee Deputy Director of the Institute for Research on Labor and Employment at Korea University, received his Ph.D. in Sociology from Korea University with a dissertation titled "Neo-liberal Structural Reforms and Changes in the Labor Market Institutions in Korea." He has worked as a Senior Researcher at the Institute for Unification Studies, a Research Fellow at the Korea Research Institute for Vocational Education & Training, and an Administrative Officer in the Office of the President. Afterward, he obtained a second Ph.D. in Political Science from Kent State University, specializing in Policy Administration and Analysis.

His main research areas include laborology, employment and job, social policies, innovation clusters, and entrepreneurship ecosystems. His research includes "The Politics of Job Creation in Economic Crisis: A Comparative Analysis of Active Labor Market Policies in the OECD Countries" and DJ Government's Restructuring and the Labor Market (BAIKSAN Publishing House.). He has also co-authored books such as Regional Innovation Systems in the World (Hanwool Academy), Secondary Regular Employment in the Financial Industry, Collective Bargaining in Public Institutions (BAIKSAN Publishing House.), Innovation and Evolution of ICT Clusters(Hanwool Academy), Labor Market and National Competitiveness, and Wage System in Public Institutions (BAIKSAN Publishing House.).