Rethinking the Welfare State: The prospects for ... - e-Library
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Notes 262<br />
h/2000/00–07/00–07–07/d000707a.htm. Elsewhere in <strong>the</strong> OECD, however, unemployment<br />
figures are not as sanguine and pose a continuing cause <strong>for</strong> concern.<br />
3 This is not to say, however, that macroeconomic policy writ large is unimportant in reducing<br />
unemployment. Ra<strong>the</strong>r, prudent growth encouraging fiscal and monetary policy should be<br />
considered a foundational requirement <strong>for</strong> embarking upon microeconomically-oriented<br />
employment strategies.<br />
4 Andrew Bernstein and Michael Trebilcock, “Labour market training & retraining,” Working<br />
Paper No.4 (Toronto: Center <strong>for</strong> <strong>the</strong> Study of <strong>State</strong> & Market, University of Toronto, 1996),<br />
p. 23.<br />
5 For an evaluation of many recent ALMPs among OECD countries see Martin, supra note 1.<br />
For an earlier and in some ways more thorough analysis, see Robert G. Fay, “Enhancing <strong>the</strong><br />
effectiveness of active labour market policies: evidence from programme evaluations in<br />
OECD countries,” Labour Market and Social Policy Occasional Paper No. 18 (Paris: OECD,<br />
1996). See also Bernstein and Trebilcock, ibid.<br />
6 Morley Gunderson, “Training in Canada: progress and problems,” in Barrie O. Pettman (ed)<br />
Government Involvement in Training (Brad<strong>for</strong>d: MCB Publications Limited, 1978), p. 127.<br />
7 Morley Gunderson, “Active labour market adjustment policies: what we know and don’t<br />
know,” report to <strong>the</strong> Panel on <strong>the</strong> Role of Government in Ontario (2003), p. 16, available at<br />
http://www.law-lib.utoronto.ca/investing/reports/rp33.pdf.<br />
8 Ibid., p. 15.<br />
9 Ibid., p. 8.<br />
10 Ibid., p. 9.<br />
11 <strong>The</strong>re are o<strong>the</strong>rs, most notably seasonal unemployment in sectors such as fishing and<br />
construction.<br />
12 Organisation <strong>for</strong> Economic Co-operation and Development, <strong>The</strong> OECD Jobs Study: Facts,<br />
Analysis, Strategies (Paris: OECD, 1994) p. 9.<br />
13 Ibid., Table 1. Long-term unemployment, which is usually attributable to structural features,<br />
as of 1994 constituted 42.2 percent of <strong>the</strong> unemployment rate in <strong>the</strong> European Union,<br />
compared with a comparably minor 11.2 percent in Canada and <strong>the</strong> United <strong>State</strong>s.<br />
14 See Richard B.Freeman, “Are your wages set in Beijing?,” <strong>The</strong> Journal of Economic<br />
Perspectives, 9(3) (1995), p. 18. Freeman claims that real wages in <strong>the</strong> US <strong>for</strong> males with 12<br />
years of education dropped 20 percent in real terms between 1979 and 1993. For fur<strong>the</strong>r<br />
evidence of <strong>the</strong> erosion of real wages over <strong>the</strong> same period of time in <strong>the</strong> US see William<br />
Cline, Trade and Income Distribution (Washington, DC: Institute <strong>for</strong> International<br />
Economics, 1997), p. 23. See also Philippe Aghion and Jeffry G.Williamson, Growth,<br />
Inequality and Globalization (Cambridge: Cambridge University Press, 1998), p. 36.<br />
15 See US Department of Labour Council of Economic Advisors, 20 Million Jobs: January<br />
1993 to November 1999 (December 3, 1999), available at:<br />
http://clinton4.nara.gov/media/pdf/20miljobs.pdf. According to <strong>the</strong> report at page 6, “<strong>The</strong><br />
resumption in real earnings growth since 1996 has been especially evident among low-wage<br />
workers […and] compared with <strong>the</strong> 1980s expansion, <strong>the</strong> growth in earnings has been much<br />
more evenly distributed.”<br />
16 Cline, supra note 14, pp. 32–3.<br />
17 OECD, supra note 12, Table 1. In 1993, <strong>the</strong> OECD average <strong>for</strong> youth unemployment stood<br />
at 15.1 percent (vs. aggregate of 7.8 percent); in Canada, <strong>the</strong> youth unemployment level was<br />
roughly 17.8 percent.<br />
18 Jeffrey G.Reitz, “Occupational dimensions of immigrant credential assessment,” in Charles<br />
Beach, Alan Green and Jeffrey G.Reitz (eds) Canadian Immigration Policy <strong>for</strong> <strong>the</strong> 21st<br />
Century (Kingston, Ontario: Jun Deutsch, 2003).<br />
19 In practice, however, <strong>the</strong> split between firm-specific and general human capital is very<br />
blurred. One aspect of training may apply only to <strong>the</strong> operation of a very specialised<br />
machine, <strong>for</strong> instance. This is prima facie a firm-specific investment. However, such a skill