Unemployment and Poverty
This chapter emphasizes the role of unemployment insurance and labour market policies. Starting from the recent evolution of unemployment in the European countries, it presents the main aspects of unemployment insurance systems and shows the disparities in terms of generosity and coverage among the countries. The trade-off between flexibility and protection of employees is presented and the example of the Danish flexicurity is put into perspective with recent reforms introduced in France or Germany that push for more activation and experience rating. The chapter then surveys the recent changes in the nature of European employment such as the case of deported workers or the increase of jobs related to new technologies. These changes exert pressure on the poorest workers and call for controls of work contracts.