Wednesday, April 22, 2009

Hoy me siento flex, #2

Just a little graph to develop the point about social trust and flexicurity. The countries with highest EPL (here using a World Bank measure, low scores = high EPL) have the worst reputations for corruption on the Transparency International index (high scores = low corruption).

The same countries also have mostly low replacement rates and/or non-universalistic unemployment coverage.

This suggests flexicurity is not going to work beyond Scandinavia, since the countries most in need of it have precisely the kind of weak institutions which will stop it working properly. In fact, there is a long history in Southern Europe of unemployment and other social transfers being distributed according a political-clientelistic logic, rather than in accordance with social need. This makes 'protecting the worker rather than the job' hard to achieve.