The Regulation of Employment
The regulation of job security is an important, but understudied, aspect of the welfare state. This contribution reviews academic debates that aim to explain the development of job security regulations across time and countries. While earlier debates focused on dismissal protection as an issue contested between capital and labour, the varieties-of-capitalism approach has emphasized the complementarity between job security regulations and the production models in coordinated market economies. Recently, political economists have begun to discuss diverging regulatory trajectories for open-ended and temporary employment contracts. This is argued to produce ‘labour market dualism’ and conflicts within the working class between ‘insiders’ and ‘outsiders’. The labour market crisis that began in 2008 seems to have changed the politics of job security regulations in those countries that were heavily affected.