The inegalitarian syndrome and the exhaustion of labour Philippe Askenazy
• Wages income and wealth inequalities Atkinson • Economic crisis Galbraith • Work inequality is multidimensional: wages, employment status, working conditions… • A potential common disease: the exhaustion of labour
Large inequality in working conditions Procedural autonomy by detailed occupation and gender EU 27, European Working Conditions Survey 2010
Work intensification Working at very high speed to tight deadlines At least a quarter of the time. EC12 EWCS 1991-2010 80,0% 80,0% 75,0% 75,0% 70,0% 70,0% 65,0% 65,0% Total Total High ‐ skilled clerical High ‐ skilled clerical 60,0% 60,0% Low ‐ skilled clerical Low ‐ skilled clerical High ‐ skilled manual High ‐ skilled manual 55,0% 55,0% Low ‐ skilled manual Low ‐ skilled manual 50,0% 50,0% 45,0% 45,0% 40,0% 40,0% 1991 1995 2000 2005 2010 1991 1995 2000 2005 2010
The productive model and its interactions Labour relations Technology Labour policies Work organisation Globalisation Labour market Market structure
Productivity growth based on intensification and flexibility is –at best- bounded Labour productivity annual growth. 1995-2011 Selected countries, OECD 3,5 3 2,5 1996 ‐ 99 2 2000 ‐ 03 1,5 2004 ‐ 07 1 2008 ‐ 11 0,5 0 US UK FR GE IT SP ‐ 0,5
From intensification to exhaustion Job unsustainability. EU27, ECWS 2010
From intensification to exhaustion Life expectancy at 50 with and without activity limitation. 2005-07 and 2008-10. EU15, SILC-Eurostat 20 19 18 17 16 15 Men Women 14 13 12 11 10 2005 ‐ 07 LE without AL 2008 ‐ 10 LE without AL 2005 ‐ 07 LE with AL 2008 ‐ 10 LE with AL
Symptoms: I ncome/ wealth inequality and economic crisis • Weakening position of most workers (+ in some countries productivity gains) = rents extracted from labour • Capture of rents • = > Rising income and wealth inequalities • Large wealth inequality + exhaustion of the productive model = search for sources of profits • = > boom of finance, bubbles… • = > inefficient allocation of investments
Symptoms: I ncome/ wealth inequality and economic crisis • Poor growth perspectives • = > doubts on the sustainability of sovereign debts and welfare states
The European response • Austerity = > no demand • ECB and BoE flood markets = > poor cleansing effect of recession • = > null productivity growth Labour productivity annual growth: the Great Recession versus the previous recession in the 90’s 3,5 3 2,5 2 1990 ‐ 93 or 92 ‐ 95 1,5 2008 ‐ 11 1 0,5 0 US UK FR GE IT SP ‐ 0,5
The European response • = > short term: “low” unemployment except for youth • = > short term: apparent success of some “structural” reforms, e.g. pension schemes • = > short term: social and political sustainability of an economic suicide?
Towards a new productive model?
Productivity growth based on intensification and flexibility is –at best- bounded Labour productivity annual growth. 1995-2011 Selected countries (including Sweden and Denmark), OECD 3,5 3 2,5 1996 ‐ 99 2 2000 ‐ 03 1,5 2004 ‐ 07 1 2008 ‐ 11 0,5 0 US UK FR GE IT SP SE DK ‐ 0,5
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