MA Seminar Seminar MA: Labor market inequality. Insiders, outsiders and the politics of labor market inequality

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Prof. Dr. Silja Häusermann silja.haeusermann@ipz.uzh.ch Dr. Hanna Schwander hanna.schwander@zes.uni-bremen.de MA Seminar Seminar MA: Labor market inequality. Insiders, outsiders and the politics of labor market inequality VVZ 2672 Room: AFL-E-003 Bi-weekly, Monday 14-18h. 1. General course description In the context of crisis, austerity pressure and soaring rates of unemployment and precarious employment, labor market inequality has become one of the key challenges post-industrial societies have to meet in terms of economic efficiency, distributive justice and social stability. The politics of labor market inequality have also become one of the most salient and prolific topics in Comparative Political Economy research. This seminar offers an overview of the ways in which social science can help us understand why certain countries have developed deeply divided labor markets while other countries provide a more egalitarian distribution of labor market risk. More specifically, we study the economic and political origins of inequality and it s consequences on political preferences, elections and policy reforms. The seminar is open to MA students of IPZ and MACIS and is suited for the MA Track Philosophy and Political Economy. Students should bring their laptops to class as parts of each session will be devoted to an empirical group assignment. 1

2. Programme February 17th Session 1 Introduction Introduction to the topic Programme / Organisation / Assignment of oral presentation topics Iversen, Torben and Anne Wren. 1998. Equality, Employment, and Budgetary Restraint: The Trilemma of the Service Economy, World Politics, 50 (July): 507-546. Fritz W. Scharpf. 1997. Employment and the Welfare State: A Continental Dilemma. MPIfG Working Paper 97/7, Juli 1997. (http://www.mpifg.de/pu/workpap/wp97-7/wp97-7.html) Goos, Maarten, Manning, Alan and Salomons, A. 2009. Job Polarization in Europe, American Economic Review, 99: 58 63. Scharpf, Fritz and Vivien A. Schmidt. 2000. Welfare and Work in the Open Economy. Volume I. Oxford University Press. Chapter 2: Economic Changes, Vulnerabilities, and Institutional Capabilities. Alderson, Arthur S. and François Nielsen 2002. Globalization and the Great U Turn: Income Inequality Trends in 16 OECD Countries, American Journal of Sociology 107(5): 1244-99. Kenworthy, Lane. 2003. "Do Affluent Countries Face an Incomes-Jobs Tradeoff?" Comparative Political Studies, 36: 1180. Group assignment: Identify trends of deindustrialization and globalization cross-nationally. 2

March 3 rd (HS) Session 2 Inequality: forms, measurements, development Kenworthy, Lane. 2008. Jobs with equality. Oxford: Oxford University Press (Chapter 2: Why Should we care about Inequality; Chapter 3: Sources of Inequality and Equality). OECD. 2008. Growing unequal. OECD: Paris (Chapter 1: main features of inequality, Chapter 2: Main drivers of inequality: Changes in demography and living arrangements, Chapter 4: How much Redistribution do states achieve?, Chapter 11: Conclusions) Lemieux, Thomas. 2007. "The changing nature of wage inequality", Journal of Population Economics 21(1):21 48. Demirguc-Kunt, Aslin, and Ross Levine. 2009. "Finance and Inequality: Theory and Evidence", NBER Working Paper Series Nb. 15275. Group assignment: Analyze the geographical distribution of different trends in inequality 3

March 17 th (SH) Session 3 A new form of labor market inequality: labor market dualization (session ends at 17.30h) Esping-Andersen, Gosta. 1999. "Politics without Class: Postindustrial Cleavages in Europe and America." In Continuity and Change in Contemporary Capitalism, Herbert Kitschelt, Peter Lange, Gary Marks, and John D. Stephens, eds. New York: Cambridge University Press. Emmenegger, Patrick, Silja Häusermann, Bruno Palier, and Martin Seeleib-Kaiser. 2012. "How we grow unequal." In The Age of Dualization. The Changing Face of Inequality in Deindustrializing Societies, Patrick Emmenegger, Silja Häusermann, Bruno Palier, and Martin Seeleib-Kaiser, eds. New York and Oxford: Oxford University Press. Schwander, Hanna, and Silja Häusermann. 2013. "Who's in and who's out? A risk-based conceptualisation of insiders and outsiders", Journal of European Social Policy 23(3):248-69. Davidsson, Johan and Marek Naczyk (2009), The Ins and Outs of Dualisation: A Literature Review RECWOWE Working Paper 2009: 2. Häusermann, Silja, Thomas Kurer and Hanna Schwander (2014). High-skilled outsiders? Labor market vulnerability, education and welfare state preferences, manuscript. Bonoli, G. (2005) 'The Politics of the new social policies: providing coverage against new social risks in mature welfare states', Policy and Politics, 33(3), 431-449. Eichhorst, Werner and Paul Marx (2012). Whatever works: Dualization and the Service Economy in Bismarckian Welfare States, In The Age of Dualization. The Changing Face of Inequality in Deindustrializing Societies, Patrick Emmenegger, Silja Häusermann, Bruno Palier, and Martin Seeleib-Kaiser, eds. New York and Oxford: Oxford University Press. Group assignment: Analyze the empirical distribution of labor market vulnerability across countries between different social groups. 4

March 31 st (HS) Session 4 The gap between insiders and outsiders Häusermann, Silja, and Hanna Schwander. 2012. "Varieties of Dualization? Labor Market Segmentation and Insider-Outsider Divides across Regimes." In The Age of Dualization. The Changing Face of Inequality in Deindustrializing Societies, Patrick Emmenegger, Silja Häusermann, Bruno Palier, and Martin Seeleib-Kaiser, eds. Oxford and New York: Oxford University Press. OECD. 2011. Divided We Stand. Why Inequality Keeps Rising. Paris: OECD. (Chapter 3: Inequality Between the Employed and the Non-employed, Chapter 4: Hours worked, Self-Employment and Joblessness as Ingredients of Earnings Inequality, Chapter 6: How Inequalities in Labour Earnings Lead to Inequalities in Household Disposable Income) As a preparation of the group assignment: Häusermann, Silja, Kurer, Thomas and Hanna Schwander. 2012. Explaining welfare state preferences in dualized societies: Determinants of insider-outsider divides in Europe. p. 19-29. Davidsson, Johan and Marek Naczyk (2009), The Ins and Outs of Dualisation: A Literature Review RECWOWE Working Paper 2009: 2. Group assignment: Develop and discuss different measures of the extent of labor market dualization 5

April 14 th (SH) Session 5 Drivers of dualization : Structural trends, actors or institutions? Rueda, David. 2005. "Insider-Outsider Politics in Industrialized Democracies: The Challenge to Social Democratic Parties", American Political Science Review 99(1):61-74. Palier, B. and Thelen, K. A. (2010) 'Institutionalizing Dualism: Complementaries and Change in France and Germany', Politics & Societies, 38, 119-148. Clegg, Daniel. 2012. "Solidarity or Dualization? Social Governance, Union Preferences and Unemployment Benefit Adjustment in Belgium and France." In The Age of Dualization. The Changing Face of Inequality in Deindustrializing Societies, Patrick Emmenegger, Silja Häusermann, Bruno Palier, and Martin Seeleib-Kaiser, eds. Oxford: Oxford University Press. Group assignment: Evaluate the consequences of the 2004 Hartz IV reforms in Germany 6

May 5 th (HS) Session 5 Political implications of labor market dualization: preferences and behavior Fernàndez-Albertos, José, and Dulce Manzano. 2011. "Redstribution preferences and welfare state support: The role of dualism in the labor market", Paper prepared for the Annual Meeting of the American Political Science Association, Seattle, 2011. Häusermann, Silja, Thomas Kurer, and Hanna Schwander. 2013. "Explaining welfare preferences in dualized societies: Determinants of insider-outsider divides in Europe", Paper presented at the ECPR Joint Sessions of Workshops 2013, March, 2013, Mainz, Germany. Marx, Paul, and Georg Picot. 2013. "The party preferences of atypical workers in Germany", Journal of European Social Policy 23(2):164-78. Pierson, P. (2001). Coping with Permanent Austerity: Welfare State Restructuring in Affluent Democracies In Pierson, P. (Ed.), The new politics of the welfare state. Oxford: Oxford University Press. Barrows, Samuel. 2012. "Insider-Outsider Politics Along New Lines: Reconsidering Dualization in Light of the Household", unpublished manuscript. Group assignment: tbd 12.5. Submission of research designs (on OLAT) 19.5. Final session: Presentation and discussion of students research designs 20.6. Submission of term papers 7

3. Course requirements and organization Time and venue Bi-weekly on Monday from 14:00 to 18:00, AFL E-003. The seminar starts on Monday, February 17, 2014. Preparatory readings: Please note that the readings of the first session should be done in advance of the course. Knowing the arguments of these texts and thinking about the issues around them will prove helpful throughout the rest of the semester. We will upload the remaining readings to the folders of the corresponding sessions at the begining of the semester. Structure of sessions Each session is split in two parts: The first 90 minutes will be dedicated to the discussion of the readings: We first have a short input lecture by the lecturers, followed by the presentations of the students. (Break) In the second 90 minutes of the session we will actively and empirically work on one of the topics in the session. During 45 minutes students will work empirically on a specific question related to the session s topic in a group assignment. Material will be provided or can be found in the library of the IPZ. We will then summarize and discuss the findings of each group. Course requirements Grading IPZ-students: Regular and active participation (10%) Presentation (30%) Term paper: produce an original, empirical paper on the subject of the course (60%) MACIS-students: Regular and active participation (20%) Term paper: produce an original, empirical paper on the subject of the course (80%) Presentation Registered IPZ students need to give a short (max. 12 min) oral presentation on of the readings in a session. Please note that the presentation is not supposed to summarize the readings. Rather, students should present those 3-5 aspects they consider the most relevant in these readings. These can be points of criticism or positive aspects, or also just the most interesting or important aspects of a text. Thereby, they should argue a) what is said in the texts on this aspect, b) why they consider this relevant for the literature and c) why they personally consider this relevant. 8

The handout (1-2 pages) to the presentation must be sent by e-mail to Silja Häusermann and Hanna Schwander by Friday 12h before the presentation. Topics for oral presentations are distributed directly on a first come, first served basis in the first session of the seminar. Active participation Regular and active participation Since this course is a seminar, it is essential that students come prepared for class and participate actively. We are much more interested in how you reason about ideas in the readings than in getting the right answers to factual questions. As part of their active participation students should formulate a question or a critical remark for the readings of at least three sessions in the wiki-forum on Olat. You can also link the reading with one of previous readings. Term paper Students will have to produce an original, empirical term paper on the subject of the course. The deadline for handing in the term paper is June 20th 2014. Please upload the term paper in the corresponding folder on OLAT (one single pdf). Formal requirements for the term paper: Word count: 5000-7000 words (IPZ students); 4000-6000 words (MACIS students) Cover page with complete information Signed statement of Authorship (Selbstständigkeitserklärung) (send by postal mail or hand in to the lecturers directly) Credit points: 6 (IPZ), 4 (MACIS) 9