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thirteen - Slovenian labour market policies under austerity: narrowing the gap between the well- and the less well-protected in the labour market?
- Edited by Sotiria Theodoropoulou
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- Book:
- Labour Market Policies in the Era of Pervasive Austerity
- Published by:
- Bristol University Press
- Published online:
- 12 April 2022
- Print publication:
- 28 February 2018, pp 309-336
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Summary
Introduction
The Slovenian welfare system is based on elements of a conservative-corporative welfare system, with compulsory social insurance systems and the state in a prominent role as provider of (universal) services, such as health, child care and education (Kolarič et al, 2009, 2011). In the 1990s, a fairly gradual approach to welfare system reform was adopted (Kolarič et al, 2009, 2011), which has continued until today. This gradualist approach is linked to the strong institutionalisation of social dialogue and relatively strong trade unions, the high coverage of collective agreements, and the prevalence of left-centrist parties in government over the past 25 years. Furthermore, as emphasised by Lavrač and Majcen (2006), Slovenia is one of the more developed countries in Central and Eastern Europe and thus could afford to take a gradual approach to structural reforms of the economy (eg privatisation). It thus opted for gradual reforms of the labour market, pension system, social welfare system and education system, keeping family policy intact, as well as social services such as childcare and elderly care (Kolarič et al, 2009, 2011; Filipovič Hrast and Rakar, 2017). However, the authors also warned that a potential negative side of this approach is the postponement of necessary structural reforms. Consequently, according to some authors (eg Guardiancich, 2011), although Slovenia has ensured social peace in this way, it may also be the reason that the crisis has hit Slovenia particularly hard.
The economic crisis, which led to high unemployment, stimulated several reforms of the labour market. In addition to the economic pressures, the Slovenian welfare state is also facing pressures from demographic ageing. These pressures are most evident in the poor sustainability of the pension system, but also in the labour market and its state of preparedness for an ageing workforce. One of the important reasons for the pension reform was the necessity to increase the activity rate among older age groups (55–64 years of age), which is among the lowest in the European Union (EU) (42.2% in the second quarter of 2016; see Eurostat, 2017).
In the next two sections, we present the major labour market policy changes, with emphasis on the period after 2010. These changes are also presented in relation to the retrenchment/expansion of policies, as well as the adoption of activation and flexicurity, as well as their consequences for the living standards of the most vulnerable groups.
six - Young people in the labour market in Hungary and Slovenia: problems and perspectives
- Edited by Harriet Bradley, Jacques van Hoof
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- Book:
- Young People in Europe
- Published by:
- Bristol University Press
- Published online:
- 20 January 2022
- Print publication:
- 27 April 2005, pp 115-136
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Summary
Introduction
Economic, political and social systems in post-socialist countries have undergone major transformation as a consequence of transition from a planned to a market economy and of a democratisation process. The complexity of these systems, however, derives not only from the changes themselves, but also from the combination of the transition process and some more general trends in the world economy, such as increasing competitive pressures caused by globalisation and structural changes in the sphere of work. The latter include higher pressure on competitiveness and efficiency, flexibilisation of work arrangements and employment relations, and a shift from industrial to service sector jobs. Recent demographic trends (declining birth rates, ageing of population and changing family structures) have also contributed to the complexity of transformation in the countries of Central and Eastern Europe (CEE).
These processes have also influenced young people in these countries in ways similar to their peers in Western Europe. Several youth researchers in the CEE have pointed out that, as the building up of a market economy advances, the youth situation in the region follows West European patterns more and more closely (see, for example, Gábor 2002; Wallace and Kovatcheva, 1998). Not only does this apply to the transition from education to work, but also to those other features that characterise young people's position in society. Data show that, similar to trends in Western Europe, time spent in schools has become longer, secondary and tertiary education is undergoing expansion, and transition from education to work has become more prolonged and difficult. Compared with their West European peers, however, young people in CEE countries often find themselves in a more difficult position, since labour market entrants in particular were adversely affected by the economic changes accompanying the transition process to market economies. This was already visible in the early 1990s when youth unemployment increased. Later on, when the economic situation began to stabilise, flexibilisation of employment relations mainly affected young people, leading to higher insecurity of employment in their case, to individualisation of risks and other consequences. Not only has the young people's position changed in the risky post-socialist period, the general perception of youth as a social group has changed too, which has implications for public (welfare) policy directed towards them.
eleven - Slovenia’s navigation through a turbulent transition
- Edited by Jørgen Goul Andersen, Jochen Clasen, Wim van Oorschot, Knut Halvorsen
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- Book:
- Europe's New State of Welfare
- Published by:
- Bristol University Press
- Published online:
- 20 January 2022
- Print publication:
- 27 November 2002, pp 195-216
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Summary
Introduction
Slovenia is a small European country situated between Italy, Austria, Hungary and Croatia, with a population of two million people. It is also one of Europe’s newest countries, and its geographical location and culture are more Central than Southern European. Slovenia only became independent in 1991. The decision to break from the former Yugoslavia involved making a radical break with the past in political and economic terms. In the politics sphere, the transition included:
• a shift from a one-party system to political democracy and a legal state;
• approaching international organisations as an independent state;
• applying for full membership of the EU.
In the economic area, in particular the transition included:
• a shift from a planned to a market economy;
• privatisation in terms of substituting well-defined private owners for the previous ownership of nobody and the state;
• a shift from predominantly internal to external markets.
Several changes started parallel to this and caused the biggest social turbulence in the postwar era. The most important issue was how to navigate the country through the treacherous waters of a crisis in order to open again the doors of prosperity that had been closing before transition started (see Svetlik, 1992; Fink-Hafner and Robins, 1997).
Ten years later, a success story (see also Svetlik, 1998) has unfolded that can be summarised thus:
• Slovenia has been recognised as an independent state and become a member of the most important international organisations, such as the UN and the World Bank (WB). It leads a group of countries set to become new members of the EU.
• Several institutions have been created anew, restructured or abolished in order to put political democracy on firmer grounds. The fourth democratic elections in 2000 gave power to a centre-left coalition.
• Institutional backing of the market economy has been provided. Legal barriers to free entrepreneurship have been removed, and the number of new enterprises has more than tripled. Most prices have been liberalised. The Slovenian currency (tolar) has been made convertible. The deep economic crisis was over in 1993. Gross domestic product (GDP) per capita exceeds $10,000 ($15,000 in purchasing power parity). Investments, productivity and real wages are increasing. However, hard currency reserves that exceeded the debts and the budget deficit that was below 2% in the 1990s have again become problematic. Inflation remains at about 8%.