2
Tilburg Research - 2009, volume 6, number 1
Preface
The world does not owe us a living. In times of economic crisis, that reality is starting to sink in again. We might have to
work until we’re 67 to be able to retire comfortably, the levels
of job security that current pensioners enjoyed are history.
With the ageing population social provisions are increasingly
more difficult for the state to maintain. How are we going to
enjoy life?
In this issue of Tilburg Research, sociologists, economists,
law scientists and psychologists of Tilburg University
address important questions regarding the future of the
labour market. More flexibility of the European market combined with guaranteed employment rather than a job for life
seems to be the preferred option, but how would it work?
How far does European solidarity go when labour migration
is concerned? How do we open the labour market more for
women and people over 50? Is a new generation conflict
looming?
This period of recession offers the perfect opportunity to
develop ideas and change policy. As a university specialised
in the humanities and social sciences, Tilburg University
offers a wide range of expertise to contribute to exactly that.
Some of the Tilburg University researchers interviewed in
this issue conduct research for the recently established
Research Institute for Flexicurity, Labour Market Dynamics
and Social Cohesion at Tilburg University, ReflecT. Others are
affiliated with Netspar, an independent network for research,
education and knowledge exchange in the field of pensions,
ageing and retirement also located at Tilburg University. In
such an environment, an interdisciplinary approach offers
new perspectives on the important questions facing society.
2
10
16
24
All of the contributors to this issue share the need and passion to contribute to society through their research. They are
the people behind Tilburg University’s slogan Understanding
Society. I hope you will be as inspired by this issue of Tilburg
Research as I am.
Prof. dr. Philip Eijlander
Rector Tilburg University
FEATURES
Tilburg Research
Tilburg Research is a magazine for special-interest groups about research at Tilburg University
in the Netherlands. Tilburg University specialises in the social sciences and humanities.
Colophon
Publisher Marketing & Communications, Tilburg
University
Editor in chief Corine Schouten
Editors Tineke Bennema, Reggy Peters, Margreet
Punt, Ilja Verouden, René Voogt
Photos Cover photo: Elderly worker by Gerlo
Beernink / Hollandse Hoogte; Research portraits: Ben Bergmans
Translation Taalcentrum-VU Amsterdam
Layout and graphic design Beelenkamp
Ontwerpers, Tilburg
Printer Grafische Groep Matthys
2
What’s going on? Crisis, ageing and
morale
By Rik Oerlemans
10
Crisis brings employment migration
into sharp focus
By Marga van Zundert
Columns
7
15
Till the age of 67
By René Paas
Happy raising the pensionable age to 68
By Rick van der Ploeg
THROUGHOUT THE ISSUE
16
The Netherlands turns its back on
Europe far too much
By Frank van Empel
Research portraits
Sonja Bekker, Fred van Raaij, Harry van Dalen,
Irmgard Borghouts, Ruud Muffels, Tunga Kantarci
24
The reservoir of alternative workers
By Ellie Smolenaars
news
On investment behaviour, healthy Europeans,
dynamic indicators, future prospects and policy
making, and pension system reform
INTERVIEW
29
The focus of work has moved towards
intrinsic values
By Tineke Bennema
1
2
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
3
What’s going on?
Crisis, ageing and morale
By Rik Oerlemans
“Generally speaking, the average worker has learnt to seek enjoyment in life
from sources other than the workplace. Yet from a human and a personal perspective, it is crucial that work itself also provides fulfilment, both in terms of
the relationship in which it is conducted and by means of an understanding
of its significance to the bigger picture.”
Willem Drees, 1946 (Dutch prime minister 1948-1958)
In the last sixty years, work and free
time would seem to have begun to
compete with each other. Free time
became increasingly valued while
the satisfaction people gained from
their work was driven ever further
into the background. Increasing
prosperity brought exotic holidays within the reach of everyone.
Collective labour agreements promised more money, more free time
and more generous redundancy settlements. Work became a side issue,
a mere condition needed to qualify
for the blessings of prosperity. The
massive influx of young people into
the employment market in the last
twenty years of the twentieth century also enabled many people in their
fifties to opt to leave work early and
to engage prematurely in blissful
inactivity, supporting the generation
that followed them. The work ethic
of a generation was snuffed out.
But suddenly somebody unplugged
the sunbed and everything changed.
The age of the crisis mentality
was ushered in. Lost investments
threatened many people's pensions
and later retirement became the
only option. None of this seemed
remotely surprising as we were only
too aware of the impending threat
of the ageing population. In ten
or fifteen years’ time, the elderly
will be in the majority here in the
Netherlands. That will create major
risks in healthcare and education.
This time has not yet arrived, but
if, when it does, those sectors of
industry that are the strongest end
up monopolizing the few workers
still available in the market precisely
at the time when a growing group of
elderly people are putting pressure
on the healthcare system, there will
be no one to care for these people.
For the same reason, education and
training is under threat of being
squeezed. The solution is to continue working for longer to prevent any
shortage in labour developing. But
in that case, it will have to be more
fulfilling. Because if it is absolutely
necessary, we at least want to enjoy
work a little.
(c) Martijn Beekmans / Hollandse Hoogte
4
Tilburg Research - 2009, volume 6, number 1
Social provisions
threaten to become
impoverished and
empty
Employees are a dying breed
So how do you go about getting
fulfilment from your work? As early
as 1937, Tilburg professor Frans van
de Ven predicted a future in which
the working relationship would no
longer be one between employer
and employee, but between the person carrying out the work and his or
her work. This proved to be particularly visionary because seventy years
later increasing numbers of working people are choosing to become
self-employed and sell their services
to a range of different clients. As
much as 58% of working population
is now made up of self-employed
people without staff, agency workers
and part-timers. These people generally suffer no shortage of fulfilment from their work and they work
hard – or at least they did before
the crisis. But a carefree attitude
predominates: although part-timers
and agency workers do accumulate
pension entitlements, only very
few of these self-employed workers
are sufficiently forward thinking
to be building up their own pension; most simply do not have the
resources to do so or are simply not
bothered. As a result, in the space
of just twenty years, social provisions threaten to become impoverished and empty.
Fear of Falling
The minority of the working population who still happily go to work
for their boss on a daily basis have
better financial prospects for the
future than the self-employed. The
problem is more down to a lack of
fulfilment in the present. Economist
and pension expert Lans Bovenberg
knows exactly who we are talking
about: “They tend to be the older
workers from the middle classes,
threatened by what we call a fear of
falling. They are only too aware that
their financial remuneration exceeds
their productivity and that they are
no longer in the right place to make
the best of their abilities. But if they
opt for a job that suits them better,
their redundancy payments will be
threatened. This is because these are
linked to the number of years one
has worked for a particular employer.
‘We have forgotten
how to push ourselves
to the limit’
Besides, who would want to employ
them now? It is quite understandable that people in this situation are
highly reluctant to come forward
when called upon to start looking for
another job. The system we grew up
in was one where you dutifully plodded on working for the same boss
until you qualified for your pension.
This system has now been turned
upside down which is bound to create some tension.”
Tilburg Research - 2009, volume 6, number 1
Fear of Flying
Bovenberg is alluding to the proposals made by the Dutch Bakker committee, which suggested that people
should not only work until the age of
67 but should also take an active role
in finding alternative employment
for themselves with the support
of training budgets. Employment
market professor Ton Wilthagen
welcomes these suggestions but also
points to the limitations of Bakker’s
analysis: “The Bakker committee
has lots of good ideas, but everything
is based on traditional employment
relationships and many people no
longer have or wish to have such a
relationship. Bakker does try to find
solutions for the self-employed, but
limits these to employment insurance. We should take care not to
develop old solutions to new problems. Do you know what the real
problem is? We are lacking the three
essential ingredients for the employment market. You need capacity,
facility and mentality. Mentality is
the area in which we fall short. We
have forgotten how to push ourselves
to the limit. We have spent too long
behaving like fledglings waiting in
the nest with open beaks until the
state throws food in our direction.
The world does not owe you a living. You owe it to yourself and to the
world to get the very best from yourself. In prosperous countries this has
become forgotten.”
It is a question of mentality. This
makes quite a lot of sense. Anyone
who looks to themselves or examines
history will have some understanding for this viewpoint. Our society
5
is no stranger to a certain degree
of self-satisfaction and arrogance.
Wilthagen: “Here in the Netherlands,
we excel in lots of things but we
seem to have forgotten that you also
need guts to benefit from the fruits
of your labour. The average Dutch
person takes the same attitude as
the Dutch football team: they are the
absolute best, until they actually have
to play a match.”
(c) Jiri Büller / Hollandse Hoogte
Victims of our own success
So that’s the situation. A lazy mentality, a growing group of under-insured
self-employed aged fifty or younger,
and another increasing group of
fearful over-fifties, working patiently
for their boss until they qualify for
early retirement. How can we get it
into people’s heads that they need
firstly to work longer, secondly to
get better insurance for old age and
unemployment and thirdly to face an
unreliable future with unremitting
optimism? This is far from easy as
the working population is extremely
variable. “We have become victims
of our own success”, says Bovenberg.
“If you have a lot already then you
also have a lot to lose. Everyone is
free to plan their future in their own
way, but I’m becoming increasingly
sceptical about people’s ability to also
determine their more distant future
without other people’s help. The less
educated in particular are extremely
reluctant to delay their own satisfaction. They invest little if anything
in pensions, education and health.
But to what extent should one adopt
a paternalistic approach and try to
protect people from themselves?
6
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
7
Column
Perhaps we need some kind of
interim position between complete
and partial freedom of choice similar
to the stance now adopted by government for organ donation. But there’s
more: there is a world of difference
between a qualified ‘no’ and a qualified ‘yes’. People’s capacity to protect
themselves is actually quite limited.”
This is why Netspar, the institute at
which Lans Bovenberg is academic
director, is now collaborating with
psychologists. We often know full
well what is good for people, but how
do you explain it to them and how
do you help them to make sensible
decisions?
When will the baby
boom generation eventually realize that they
have enjoyed a life of
luxury and that I do not
want to pay for their
extravagance?
Oh no! A gap in my CV!
Ton Wilthagen has an answer for the
diversity of the employment market
and it is also a tool that helps make
people responsible for themselves
again: flexicurity. In a nutshell, it
involves making it easier for employers to dismiss their staff while also
making it easier for employees to
retrain and find other work. “It also
achieves this without the stigma
normally attached to such things
here in the Netherlands”, he says.
“In Denmark, where work was never
there for the taking, people enjoy
excellent protection; but it does not
ensure they keep their job, it helps
them find solutions in searching for
another one. The system works wonderfully. And perhaps more importantly, it means that in Denmark
unemployment is rarely stigmatized.
Just try explaining a six-month gap
in your CV here in the Netherlands.
Adaptability, both on the part of
employers and employees, is sadly
lacking in the Netherlands.”
The people now at university
have worse prospects than
their parents and grandparents
Everything suggests that the problems of the current crisis and the
ageing population are distracting
us from a much more significant
problem: the issue of declining
morale. We should see this crisis as
our wake-up call. The people now
at university have worse prospects
than their parents and grandparents.
This realization is slowly beginning to hit home also among young
people themselves. On 27 March of
this year, an otherwise anonymous
Sandra wrote on www.nrc.nl/mijnrecessie: “There are plenty of people
in the older generations who already
have everything sorted. In recent
decades, the value of their houses
has increased so explosively, that the
current fall in house prices is nothing more than a justified correction
in a slow market. Renegotiate their
pensions? They are so assertive that
they can probably simply keep their
old guarantees and income. This
group will be fine. They were able
to put money aside during the good
times and have lived their whole lives
in greater luxury than the younger
generations. The protests one continually hears from this group are
something I cannot take completely
seriously. The caravan, the second
home in Spain, their final salary pension, the golf club and numerous foreign holidays and nostalgic pleasures
will see them through. When will
the baby boom generation eventually
realize that they have enjoyed a life
of luxury and that I, a member of the
younger generation, do not want to
pay for their extravagance? For their
golfing fees and second homes?”
Is this a new generational conflict in
the making? Because although she
may go a bit too far, Sandra is right
when she says that a large group of
older people have enjoyed the good
times and been able to put their
house in order. And now it seems
to be the youngsters who are facing
problems. Fortunately, they seem to
have little objection to an increase in
the pensionable age. That is probably
a good thing, because whatever the
future may have in store for young
people, this is something that will
probably be impossible to avoid.
Then there's the fact that work also
needs to be sustainable - fossil fuels
have almost been exhausted and we
can no longer be confident about our
climate. In all kinds of ways, we have
become victims of our own success.
This is certainly not the time to sit
back smugly and relax.
Till the age of 67
By René Paas, Chairman of the National Federation of Christian Unions
in the Netherlands (CNV)
This column is about continuing work up to the age of 67.
It is not about moving the
pensionable age since one
does not automatically lead to
the other. In the Netherlands,
the official retirement age is
currently 65 but on average we
retire at the age of 61. Many
people stop work even earlier
as a result of incapacity for
work or unemployment.
The decision to move the
retirement age to 67 did not
seem to be a difficult one to
make for the world of politics.
Hamer, the Chairman of the Dutch Labour party (PvdA),
pointed out with some cynicism that none of the three
coalition parties had a strong position on this in their party
manifestoes. This made it easy for them to reach agreement.
Although the decision may not be difficult to make, ensuring that people actually continue working until their retirement age is rather trickier. Ultimately this is not a problem
for politics to sort out. It is the responsibility of employers
and employees. It is rather too convenient simply to think
that the tight employment market of the future predicted by
many will itself ensure that everyone remains in work. This
is simply not the case. Certain jobs place a heavy physical
burden on workers. Different people enter the workforce at
different ages.
Employees will actually have to work until their retirement
age. This places demands on these employees. They have
to take responsibility for ensuring that they remain capable
of continuing to participate in the employment process.
They need to remain alert to the opportunities offered by
the labour market. It also places demands on employers.
They need to stop seeing older employees primarily as an
expense. Even if the productivity of older workers is falling,
employers have to take their share of the responsibility.
Training plays a role in this, but also the effective deployment of the available labour capacity.
People often compare employment to the world of sport.
In that world, there is an increasing focus on life after sport.
It makes obvious sense to apply the same vision to employees. We call it age-conscious personnel policy. These are
more than just pious words; they have to be put into action.
Indeed, this is already happening and quite close to home.
The world of construction is a good example and one which
has a lot of experience with more demanding jobs. Training
is not delayed until people have passed their best, but a
preventive approach is applied to develop ways to ensure
that people can remain involved in employment.
Anyone who loses their job is eager to find new work. But
many people are happy to retire when they are approaching
the age of 60. ‘How much longer have you got?’, they will
ask each other. The worst thing is that they already know
the answer. We need to bring about practical changes. This
can be achieved by ensuring that people enjoy the work they
do. It can also be achieved not by using benefits to catapult
people from one job to another (running the risk of losing
them in the meantime) but by offering interim training to
bridge the gap from one job to the next.
The discussions in the Social and Economic Council of the
Netherlands (SER) on the issue of increasing the retirement
age will need to focus substantially on the question of how
to avoid simply postponing the problem. We need to ensure
that people continue to participate. This is important for
the people themselves and it also has macro-economic
benefits. The issue is less about stopping work and more
about continued participation.
8
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
9
research portraits
Impact of the ageing
population mitigated by
the current crisis
NGOs and public perspectives
influence flexicurity policy EU
Name: Sonja Bekker
Position: PhD candidate
Institute: ReflecT, Research Institute for Labour Market Dynamics and Social Cohesion
at Tilburg University
Research: Dealing with the flexibility-security nexus in European law and policymaking
“
The current economic crisis painfully exposes the problems in our labour market system. Flexible workers are
the first to face mass redundancies, followed by people on
permanent contracts. But it is an exciting time to analyse
how different countries deal with the issue of flexicurity.
Flexibility and security need to be linked to the labour
market and all stakeholders need to become involved in
the development of flexicurity strategies. My research provides inspiration for designing such a process of change
to create a more effective labour market.
The European Commission has translated its employment strategy into a series of targets. By 2010, all member
states must achieve an overall employment rate of 70%.
The Commission carries out annual evaluations on
progress in various countries. Examples of best practice
are then shared with other countries to provide inspiration. This is the process that I am examining.
I evaluate whether it is effective and where there is room
for improvement. I focus primarily on the first part of
the process: how did the European vision on flexicurity
develop?
The role of non-governmental organizations has
proved a particularly surprising aspect of my research.
Organizations such as AGE (the European Older People’s
Platform) and the European Youth Forum, and even
religious institutions such as Conference of European
Churches, have made a major contribution to the flexicurity debate. They have involved the interests of minorities
and more vulnerable groups in our society in this debate.
Although these organizations do not have a strong position formally in European decision-making, their contribution has highlighted the importance of the social aspect
of flexicurity. The lesson we can learn from this is that
involving these groups in the processes of change within
Europe will prove to be crucial.
The public's perspective on flexicurity also plays a significant role in the speed at which new labour market
policy is implemented. In this, the Netherlands is perhaps
a rather negative exception. Flexicurity is often associated with the law governing dismissal that needs to be
scrapped. As a result, the debate focuses purely and
exclusively on redundancy payments with no link to other
aspects of labour market policy. Seen from another perspective, the Netherlands leads the way compared to other
countries, for example in terms of its low unemployment
figures.
The government and its social partners are eager to find
out how the process of implementing flexicurity in Europe
is progressing. All 27 member states are currently in the
process of implementing the European Commission's
recommendations, but are they doing so effectively?
What results have been achieved? Does the process need
to be modified or accelerated? This is the first time anyone
has carried out actual research into this process.
This research makes Tilburg University unique. [RV]
”
Name: Fred van Raaij
Position: Professor of Economic Psychology
Department: Social Psychology
Research: Behavioural and Experimental Economics
“
My area of expertise, economic psychology, is particularly interesting in light of the current crisis. We are
currently seeing low levels of consumer confidence and
considerable pessimism which means that people are
less willing to take risks. They refuse to buy a new house
until their old one is sold, postpone investing in a new
car and opt for mortgages that involve fewer risks. They
are playing safe which has a decelerating effect on the
economy and means that fewer products and services are
being purchased. This has a negative impact on employment. Consumers can read about this in the media and
become even more pessimistic, creating a self-fulfilling
prophecy.
In economic psychology, we investigate people’s economic behaviour. At micro-level this involves for example
the purchase of products, financial or otherwise and at
macro-level it is about the impact of consumer and investor confidence on the economic situation. For ING, we
conducted research into investors and their behaviour.
This can then lead to further research into how men and
women behave differently and how the rich or poor react.
In 2008, we carried out research for the Dutch Ministry
of Finance into the purchase of financial products by
consumers. We established that their level of involvement is low: the information provided by banks about
mortgages is complex and unpleasant. The mortgage
adviser will explain things once, the consumer fails to
understand but asks no questions and then opts for a
risky mortgage. As a result, many mistakes are made
and the current crisis was allowed to develop partly as a
result of the banks’ quest for profit.
Some mortgages involve low interest rates and little
repayment in the short term, but these increase rapidly
after five years. This is why the consequences of the
current crisis may continue to reverberate in the longer
term. For example, what happens if these people can no
longer pay off their mortgages? This will delay recovery
from the crisis, which will have repercussions for the
employment market.
In the short-term, I do not envisage any major problems
yet. As a result of unemployment, people are currently
accepting traditionally unpopular jobs in education,
the police, the army and in healthcare. Working for
government has again become popular as it offers more
security than the world of business. This means that
the impact of the ageing population is less serious at the
moment. In addition, the generation of baby boomers
is currently in the process of retiring, freeing up jobs.
Problems will only start to develop if the crisis continues
into the longer term when the unpopular jobs, which
offer a safe refuge from the economy, have all been
filled. An increase in pensionable age to 67 leads to savings in state and private pension payments, but it also
reduces the number of jobs available to young people.
We must do all in our power to ensure youth unemployment is prevented. [TB]
”
10
Tilburg Research - 2009, volume 6, number 1
French workers demand better protection from the economic crisis. (c) DEMANGE/MARCHI / Gamma / Eyedea Presse
“They are taking our jobs”
Crisis brings employment
migration into sharp focus
Residents of the European Union are free to work wherever they wish. The
EU is ultimately about the free circulation of services, goods and people.
But in times of crisis, migrant workers are far from welcome: “They are
taking our jobs!”
By Marga van Zundert
Tilburg Research - 2009, volume 6, number 1
“Put British workers first”, was the
message proclaimed by the banners
waved by protesting British workers
in February 2009. They were reacting against Portuguese and Italian
workers who they felt were taking
their jobs. In that same month,
French President Nicolas Sarkozy
demanded that French jobs be protected by means of state support
for car manufacturers Citroen and
Renault. Meanwhile in Italy, Prime
Minister Silvio Berlusconi wanted
to offer €2 billion in subsidies to prevent household appliance manufacturer Indesit from going ahead with
its plans to move to Poland.
But ironically, it is the immigrants
who are first to be hit in times of
crisis. “Many Polish people work
through employment agencies.
The metal and construction industries are under pressure and it is
the immigrants who are the first to
lose their jobs”, says Peter Vermijs,
an alumnus of Tilburg University
and Director of the East European
Centre in Tilburg. Many of these
Polish workers decide to become
self-employed because the prospects
abroad are better than those offered
in their own country. But because
the employment agencies also provide accommodation, these workers
can literally end up on the streets.
Navel-gazing
“The current crisis and the upcoming European elections have put
the issue of employment migration
in sharp focus”, asserts Aukje van
Hoek, lecturer at Tilburg University
specializing in European employment law. “In times of economic
prosperity, many people appreciate
the benefits of employment migration and open borders. When the
economy begins to suffer, the situation changes. People seek security in
what they know. In this respect, this
crisis could be a litmus test of the
European Union. Is there really any
solidarity?”
Van Hoek is concerned about the
signs of protectionism and increasing nationalism. “Employment
migration is a highly controversial
social issue and will remain so.
Xenophobia is always waiting to
strike. ‘They are taking our jobs’,
becomes the kneejerk response.”
But according to Van Hoek’s colleague and lecturer in employment
law Frank Hendrickx, “there is
actually no longer any such thing as
British jobs in Europe. The economies of the European Union are
too closely intertwined. Measures
taken in Germany can have a greater
impact on the Dutch economy than
a Dutch initiative might have.”
According to the law scientists, the
current crisis may be financial in
nature but it is primarily manifesting itself on the employment market
and in particular in construction,
steel, computer chip and car manufacturing. The political response
comes in the form of measures to
stimulate employment. This is fine,
say the lawyers, but not if every
country engages in navel-gazing.
The call made by the Dutch Minister
for Foreign Trade Frank Heemskerk
for Dutch citizens to spend their
summer holidays in their own country can even be counter-productive.
If his German counterpart were to
11
make a similar proclamation, the
Dutch coast could be remarkably
quiet this year.
Open borders
The European Union aims to
become a single market with free
circulation of people, goods and
services. Despite this, each member
state is entitled to refuse to accept
migrant workers from new member
states for a period of up to seven
years. In May 2007, the Netherlands
opened up its borders to Poland,
Hungary, the Czech Republic and
Slovakia. Research shows that there
are no signs of this having a major
negative impact on the employment market. In fact, many East
Europeans have chosen to work in
the United Kingdom or in Ireland.
Vermijs: “These countries are rather
more welcoming to workers from the
former Eastern Bloc. Many qualified
workers even made the move. Now
that the work there is beginning to
dry up, they are starting to come to
the Netherlands and Norway.”
But this arrival of migrant workers was not without its problems.
Dozens of Polish people were
housed in a single terrace house,
paid starvation wages by dodgy
employment agencies and there were
numerous complaints about excessive alcohol consumption. Vermijs:
“Employment migration is a permanent fixture. The Netherlands
must ensure that it provides good
temporary housing and clear conditions of employment. At the East
European Centre, we try to ensure
that migrant workers participate in
society and we are working together
12
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
13
Migration will not disappear
Ruud Lubbers on labour migration*
Polish workers in the Netherlands. (c) Bert Beelen / Hollandse Hoogte
with Novadic-Kentron (a regional
centre that offers care to addicts, Ed.)
to find solutions to the problems of
excessive drinking."
Exploitation
European employment law is complex. There are both European and
national regulations that apply to
migrant workers. In terms of health
and safety, the national rules of the
country where the work is being
carried out apply, but in principle
conditions of employment are subject
to the regulations in the home country. The country offering temporary
employment is free to set a number
of minimum requirements, includ-
ing those relating to pay, but there
is by no means any guarantee that
Polish employees in the Netherlands
actually earn the same as their Dutch
colleagues.
The Dutch unions assert that the
rules should be the same for everyone, but employment lawyer Van
Hoek disagrees. “Of course, you
always need to be alert to the possibility of exploitation. In southern
Italy in 2006, one hundred Polish
workers who were being used as
work slaves had to be freed. But
migrant workers and their Dutch
counterparts may have very different
interests. For example, many Poles
are keen to engage in long hours and
difficult work followed by a longer
period back at home. Is it right to
prevent them from working so long?
The collective labour agreement that
applies for dredging also expressly
applies only to the Netherlands and
not to Dubai where many Dutch
dredging workers are active.”
The field of research on which
Van Hoek and Hendrickx focus,
examines what is still possible or
permissible in national employment law alongside European law.
For example, Van Hoek investigates
the possibilities of making national
employment law migration-proof:
how can you ensure that employment migration remains possible
“Migration is a centuries-old phenomenon, which contributed to
worldwide economic and cultural
development. But today, even within
Europe, countries seem to have rolled
down their shutters and locked up
the gates. With the exception of a few
highly skilled intellectual workers, the
attitude towards migrants is primarily
defensive. The main concern seems
to be how to deal with those who are
here and how to prevent others from
coming. As a result, there is a fearbased attitude towards migration.
We have to recognize this fear and
help transform it into action that
facilitates social cohesion, connection
and participation in society.
I believe that participation is key,
both locally and on a world scale.
Immigrants – in the Netherlands
and elsewhere in the world – should
participate actively in all functional
circles of society. Participation starts
with emphasizing strengths and seeking common ground.
Migrants are by nature entrepreneurs
and survivors. With their unique
skills, perseverance and experience in
at least two different countries, they
can have a positive influence on the
societies to which they migrate. They
could also be important contributors
to their countries of origin.
Migration will not disappear; let us
prove its numerous benefits!”
and yet prevent unfair competition
at the same time? As part of her
research, she has worked with a colleague from Radboud University in
Nijmegen to investigate the collective
labour agreement that applies to the
transport industry in terms of the
possibilities and problems it presents
in the light of European law. This is
a very controversial and topical area
because in their efforts to weather
the crisis, politicians are looking for
measures that can offer their electors
the prospect of continued employment and prosperity. Such measures
often tend towards protectionism.
The British Health Minister Alan
Johnston has already tried to amend
a European law that enables foreign
construction companies to undercut
competitors to secure construction
contracts. Hendrickx: “Sadly, we
know very little about employment
law in times of crisis. There has been
little research on the subject. What
rights or entitlements are workers
willing to surrender to see them
through the crisis? What measures
do governments take to boost and
protect their economies? And what
impact do these measures have?”
More or less influence
for Europe
Hendrickx warns against any hasty
or drastic measures. “We must avoid
Ruud Lubbers is former High
Commissioner for Refugees of the
United Nations. He was Prime
Minister of the Netherlands
from 1982-1994 and Professor of
Globalization at Tilburg University
from 1995-2000. Lubbers is an
active member of the Earth Charter
Council and president of the Board
of Governors of Tilburg University.
*This opinion was published previously in a different form in The Migrant, September 2007
turning back the clock. The crisis
in the 1930s led to mass nationalism and protectionist measures.
The results were rarely positive.”
Both lawyers call for solutions that
preserve the basic rules. Improved
coordination between member states
in enforcing employment law, the
prevention of exploitation and the
creation of fair competition. Van
Hoek: “I’m not calling for more
European regulation, but for a more
coordinated approach.” Hendrickx
goes a step further: “I believe that
harmonization of the rules can certainly make things easier, so in that
sense I am in favour of more and not
less influence for Europe.”
14
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
NEWS
Changes to investment behaviour
improve pension fund returns
At banks and pension funds, different managers are
responsible for different parts of the investment portfolio
and do not take account of each other’s choices or the
risks to the pension fund’s obligations such as the risk of
inflation. This poor coordination of investment choices
means the banks and pension funds are taking unnecessarily large risks that are not being offset by the expected
returns. Ralph Koijen, a PhD student at Tilburg University,
has shown that it is possible to provide incentives for managers to take account of each other’s investment behaviour by adopting a different method of measuring their
returns. This results in improved coordination of investment portfolios, which can have an enormous impact on
the performance of banks and pension funds.
‘Essays on asset pricing’, was awarded several prizes: the
Best Dissertation Award from Tilburg University in 2008,
de KVS Award for the best doctoral thesis in economics in
the Netherlands, the Goldman Sachs Asset Management
Award for the best paper in empirical investments at the
2008 Western Finance Association conference in 2008
and the Glucksman Institute Research First Prize 2008.
After defending his thesis he accepted a research position
at University of Chicago, turning down other offers from
Massachusetts Institute of Technology (MIT), University
of Pennsylvania, London Business School, London School
of Economics (LSE), Insead and University of Lausanne.
Ralph Koijen (1981) studied Financial Econometrics at
Tilburg University and carried out his PhD research at
the CentER Graduate School of the Tilburg Faculty of
Economics and Business Administration. His thesis,
New research: Uncertain future changes and
pension and health insurance systems
The steadily increasing life expectancy is starting to
impose significant strain on pension systems throughout
the western world. In addition, changes in health status
during the course of life affect health care costs. How
these trends will develop in the future, however, is difficult
to predict.
effect of uncertainty in the future development of mortality and morbidity (health status) on the liabilities of pension and health insurance plans. In particular, they will
investigate whether and how these plans should be redesigned. One of the specific issues to address is to what
extent an increase in retirement age will be a solution.
Professor of Actuarial Science and Accounting Anja De
Waegenaere has been awarded a Vici-grant of 1,250,000
euro by the Netherlands Organisation for Scientific
Research (NWO) to investigate the effects of increasing
human lifetime on pension and health insurance systems.
Together with a team of researchers, she will focus on the
"One should not ignore potentially adverse effects of an
increase in retirement age on the cost of health care",
warns De Waegenaere. "Working longer might adversely
affect health and thereby induce higher costs for
health care."
15
Column
Happy raising the pensionable age to 68
By Rick van der Ploeg
Sparks have begun to fly in the
debate over raising the pensionable age. The credit crisis,
unavoidable government interventions in the banking sector
and the ensuing effects on
our nation’s pocketbook now
make it necessary to reconsider a number of the old taboos.
One of them is the idea of
raising the pensionable age –
perhaps gradually – from 65
to 67. If you ask me, we can go
even higher.
Raising the pensionable
age is unavoidable. Every ten years we gain another two
years or so. It was not so long ago that Dutch people died
between the ages of 65 and 70. There was no such thing as
an advance pension, and people had little time to enjoy it
– just three to four years, tops. Financing was simple then.
Now we are receiving pensions for around 14 years on average. And that’s where the problem lies.
With life expectancies on the rise, government is forced
to spend increasing amounts on AOW (pension benefits).
Raising the AOW age now would mobilize the necessary
growth. And the government budget would benefit over the
long term. According to experts’ calculations, a rise from
65 to 67 would lighten the burden by several billion euros.
In my opinion the pensionable age has to be linked to the
average life expectancy. Other countries are already taking
that step.
Pension funds are facing shortfalls and can no longer pay
out what they promised. The value of shares has just about
halved. That leaves two options: lower pension benefits or
raise premiums. Also consider that it is up to the pension
funds to decide whether to pay out less than agreed. In that
case, the government could intervene and say, “No, we
would rather you didn’t. We would rather raise the pensionable age by two months every year from now on”.
That would bring you to 67 in 12 years’ time.
If you ask me: raise the pension age by three months every
year, up to 68. So then it’s 2020, by which time we live to an
average of 80. That’s 12 years of pension – not a bad deal,
is it?
However, you have to put special schemes in place for
people working in heavy labour professions. Someone
with a job cleaning freight containers gets worn out faster
and should be offered an advance pension option. This is
already standard for fire fighters.
Another possibility is to build greater flexibility into the
system. For example, allow people to continue working
until they reach 70, but with incremental reductions in their
hours. So, take the general principle and then look around
for sectors where exceptions apply. This is how I would do
it, and I think the social democrats in government would
also be able to accept this approach.
I understand that there is a strong tendency now – due
to the credit crisis - to put aside measures to keep older
people working longer. But that’s precisely what we should
not do. Now is the time to go on creating incentives to keep
older people in the workforce.
I am one of these dotty academic types. I’ll just keep at it
till I drop dead.
Rick van der Ploeg
Professor of Economics
Oxford University / University of Amsterdam
16
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
17
In response to the current crisis, the Dutch government is falling back on the
old rituals of the so-called polder model. In various regions across the country, all sorts of experimentation are underway into new approaches to the
employment market focusing on the need of employers for increased flexibility
and employees’ need for security of employment. But according to Tilburg
University professors Ton Wilthagen and Lans Bovenberg, the approach being
adopted is still far too free and easy. They are calling for firm agreements at
local and regional level. A new sort of social contract, or new deal, between
the parties involved.
By Frank van Empel
Career fair in Amsterdam. (c) Paul van Riel / Hollandse Hoogte
Employment market:
“The Netherlands still turns its
back on Europe far too much”
As the newspapers were going to
press on the morning of Tuesday
24 March, in the Catshuis - the
Dutch prime minister's official
residence - negotiations on incentive
measures and cuts had been continuing non-stop for some 14 hours.
The leaders of the employers’ organizations and the union movement
were standing by. Minister Piet Hein
Donner (Social Affairs) was keen,
once the three coalition parties had
reached agreement, to enter into an
immediate general agreement with
the social partners on wages and
old age pensions. Although it may
have seemed like 1982, it was in fact
2009.
Social contract
The general approach adopted by
Donner and his followers flies in
the face of the local, regional and
sectoral strategy suggested that very
same morning by Tilburg University
professors Lans Bovenberg and Ton
Wilthagen in the Dutch newspaper
Trouw. According to both professors,
the Dutch employment market policy
is far too free and easy. There are
no incentives for employers to assist
employees in finding other work.
Not even by means of the mobility
centres, hastily introduced by minister Donner to offer unwanted staff
immediate assistance - preferably
even before their dismissal - in finding work elsewhere. According to
the employers, it is not compulsory
and offers little benefit to them. So
instead, they simply throw their
unwanted employees over the fence
to their local job centre, or ‘UWV
WERKbedrijf’ in this case, which
threatens to become little more
than a body-counting organization.
Employees faced with the prospect
of dismissal also feel little pressure to retrain and leave their job
for a while and exchange it for less
lucrative work elsewhere. There
is no obligation to retrain in the
Netherlands, not even for people on
unemployment benefits. According
to Wilthagen and Bovenberg, nothing has changed.
Regional Agreement
Instead, both professors propose a
new type of social contract that places those operating at the margins of
the employment market in a central
position. A Kruidenbuurt Agreement
(a working class area with large numbers of ethnic minorities in Tilburg)
or a Kanaleneiland Agreement (in
Utrecht). Here individual employees
become responsible for maintaining
their level of knowledge and skills
and receive a personal budget or an
entitlement to credit to fund courses.
Employers undertake to assist individual employees even though this
may result in these employees proving their value elsewhere. Bovenberg
and Wilthagen aim to promote this
form of assistance by forcing municipalities in the relevant region to bear
the risk for the intermediary services
offered. According to the professors,
the security of a job, permanent or
18
Tilburg Research - 2009, volume 6, number 1
otherwise, can no longer be guaranteed. The only security still within
the reach of individual employees is
the guarantee of some kind of work.
But employees also need to actually
do something to get it!
A world full of differences
The underlying concept of ‘flexicurity’ (flexibility + security) was developed some twelve years ago by Ton
Wilthagen, while travelling, he says,
on a train to Berlin. On 6 December
2007 it unexpectedly gained
political weight when the European
Council made it official European
policy. Since then, Wilthagen has
been travelling the length and
breadth of Europe to attend conferences and speaking engagements,
accompanied remarkably frequently
by Vladimir Špidla, who is responsible for employment, social affairs
and equal opportunities within
the European Commission. As the
agreement reached in The Hague
was being greeted with fanfare,
pushing the Trouw opinion piece
out of the headlines, Wilthagen was
being hailed as the Godfather of
Flexicurity when introduced to politicians and academics from across
Europe at a Prague conference on
implementing flexicurity in times
of crisis.
Future proofing Europe
“It is up to us to ensure we create
a future proof Europe”, he said
on his return to the Netherlands
shortly before embarking on his
next trip to Brussels. “And what are
the Dutch government and its social
partners doing? They continue the
old relationships of the past and
do nothing to change the free and
easy nature of our employment
market. This is the exact opposite of
future proofing. We have made no
progress whatsoever since the last
crisis in 2001. This will come back
to haunt us. The most enlightened
ideas come from the rest of Europe.
I never see a Dutch politician, union
leader or employer at these events.
‘But we have the Flexibility and
Security Act’, they say. This is little
more than an admission that they
have not grasped the essential message coming from Europe.”
The essential message is that the EU
is a social market economy in which
companies’ competitiveness is determined by the flexibility of individual
employees to give up their jobs and
to move companies, sectors and even
countries in search of employment,
linked to the security of adequate
training options and the resources
needed for them. According to
Bovenberg and Wilthagen, the new
central agreement is lacking such a
vision. “It is more about a bag full
of money”, says Wilthagen, “rather
than any permanent intervention.
The Netherlands still turns its back
on Europe far too much.”
Counter-attack
“That’s old news”, says the spokesperson for the collective agreement coordinator Wilna Wind
of the Dutch union FNV. “The
Kanaleneiland agreement is even
older than Wilthagen is.” Wilna
Wind and FNV chairperson Agnes
Tilburg Research - 2009, volume 6, number 1
19
Jongerius have no desire to provide
a more detailed response, we learn.
The employers’ representatives have
a little more to say.
“Wilthagen’s arguments are well
known. But that's all they are,” is the
angry response from Sip Nieuwsma,
acting director of social affairs at
the Confederation of Netherlands
Industry and Employers, VNO-NCW.
“He has nothing to say about how
it will actually work in practice.
Wilthagen does a great injustice to
the agreements reached by the social
partners with various Dutch cabinets.”
Nieuwsma is backed up by a colleague, employment market policy
secretary at the Dutch Association
of SMEs (MKB-Nederland),
Rob Slagmolen. “We agree with
Wilthagen on the shift from job
security to work security. But on
that point in particular I feel we are
actually making good progress at the
moment. In thirty different regions,
we have set up special job fairs as a
starting point for anyone looking to
work or in search of staff. It’s a perfect example of public private partnership. It brings together employment agencies, UWV WERKbedrijf,
educational institutions, knowledge
centres and municipalities under the
same roof. Plus there's the mobility
centre to help people who’ve lost their
job find a new one. There is still a lot
to be done, but we have made considerable progress in creating the conditions employees need to continue to
learn. Much of the training is job-
related. In other words it is focused
on another job within the same
company. Some 80% of employees
participate. And the employer almost
always covers the costs. There are
also training courses that focus on
different positions within the same
sector. That works reasonably well,
especially in construction. What is
more difficult is to provide retraining
from one sector to another, for example from construction to the hospitality industry. Construction spends a
lot of money on training, whereas
hospitality does not. It is often also
a question of whether the employees
actually want it.”
Lack of vision
For Wilthagen this is little more
than grist to the mill. “Most employers feel that they should benefit
from any investment they make in
people. This is at odds with their
call for increased flexibility. If you
want people to be more flexible, you
also need to be prepared to invest in
them, irrespective of who benefits.
As well as their own responsibility,
they also bear responsibility for the
wider supply chain.” The other social
partner does not escape his criticism.
Wilthagen: “The union movement
has another fifteen years in which to
reinvent itself. At that time, almost
all its members will be reaching
retirement. No one seems to be in
any hurry to take their place. What
used to be labour market institutions, such as the collective labour
agreement, are on their last legs.
Already as much as 60% of the
Tilburg Research - 2009, volume 6, number 1
working population no longer has
a classic working relationship. Many
are self-employed with no staff, parttime or flexible workers. The union
movement has little or nothing to say
to them. Agnes Jongerius and Wilna
Wind of the FNV are escorting the
baby boomers to the exit. Then it will
be time to turn off the light.”
Brainport
According to the employers, it is
easy for Wilthagen to make such
comments from his ivory tower.
But practice is harder than theory.
“In order to keep more people at
work and inject more dynamism into
the employment market, we need to
involve many more people”, says Rob
Slagmolen of MKB-Nederland. The
question is who will take control.
Many municipalities simply are not
up to the job because of their size.
On the other hand, the councils in
the major cities are far too distanced
from their citizens. Partly for this
reason, Wilthagen is calling for
employment regions linked to each
other across sectors. “A good example
of this”, he says, “is Brainport in the
Eindhoven region – a joint initiative
of employers, schools and government agencies aiming to create a
region that leads the way in terms
of technology.”
Experiments
There is no doubt that there is a lot
of experimentation going on in the
regions. The use of framework legislation and portmanteau collective
labour agreements enable employment conditions and employment
market policy to be organized locally
with social entrepreneurs such as
Carlo Bergmans, corporate adviser
at UWV WERKbedrijf West-Brabant,
facilitating the process. Bergmans
is even personally involved in the
struggle. Alongside his day job, he
also runs an events agency that has
organized concerts such as The
Night of Harmony in Kaatsheuvel.
He also deploys this talent in his
day job. In the period 1992 to 1995,
Bergmans and his colleagues were
already organizing events with companies to bring together supply and
demand. Bergmans: “In Waalwijk,
land was sold to McDonald's. They
are bound to need staff, I thought
and so I started talking to people.
We then held a recruitment and
selection event at our offices on
Saturday. Since there was nobody
from facilities, I manned the reception myself. It worked a treat. In
those days, it was still easy to get
funding for this kind of initiative.
And we knew the people. For example, I knew that in Heusden they
were looking for a particular type of
chef, and in the next village there
was someone with exactly the right
profile.”
Thinking in terms
of potential
Bergmans thinks in terms of people's potential rather than their
limitations. He calls for the needs of
employers to be placed centre stage.
He would like to see the setting up
of a sector service point in each
region, clearly identifiable to those
seeking work and made up of entre-
Tilburg Research - 2009, volume 6, number 1
preneurs, government, educational
institutions and labour market specialists. Those involved regionally
in that sector will be responsible for
determining the strategic framework
and organizing actual execution.
Bergmans: “The aim is to achieve
long-term investment in people to
ensure that they remain enthusiastic
about their work or choose to work
elsewhere. Preventing dropouts is
better than solving the problem
after it happens. Life-long learning
ensures people are efficient and flexible and remain so.”
21
Potentially one million fewer workers available between 20 and 65
million
20
11
10
9
8
7
6
5
4
Shrinking working
population
In a year’s time, when the current
crisis has burnt itself out and the
fear of the depression has passed,
the Dutch employment market will
find itself in the opposite position,
with a shortage of workers. From
2010 onwards, the working population will begin to shrink. This is a
new development. According to the
Advisory Committee on Employment
Participation (Towards a working future, June 2008), of which
Professor Bovenberg was a member,
by 2040, there will be a shortage of
700,000 people as a result of the
ageing population and the falling
birth rate. For the first time in history, there will be more vacancies
than people available.
This is simply because the generation of baby boomers will be retiring
in their masses. There are relatively
few newcomers to replace them. This
will leave a massive hole in the welfare state's ability to cope.
Population (20-65)
Supply of employment (from 2016 with 80% employment participation)
Source: CBS (Netherlands Statistics)
Immigration
In order to ensure that the ratio
of people over sixty to the rest of
the population remains constant,
between 1997 and 2050 17 million
immigrants will need to come to the
Netherlands, according to calculations carried out by the Committee
on Employment Participation.
The Dutch government prefers
to increase the retirement age.
Employers would like to adopt a
selective approach in admitting
immigrants. Nieuwsma of Dutch
employers’ organization VNONCW: “Obviously we're thinking
about those jobs threatened with
shortages. If we do not allow more
immigrants to enter the country,
we will be unnecessarily restricting
the economic growth that will be so
essential after this crisis.” But the
immigrants will have to come from
outside Europe, because the whole
of the EU is facing the same issues.
Eurostat predicts that the current
European working population of 305
million will have fallen to 255 million
by 2050.
Linking up sectors and
regions
The concept of flexicurity could
also prove to be the solution here.
“We agree with Wilthagen that the
employment market must be allowed
to function more flexibly”, says
Nieuwsma. “We've been saying that
for thirteen years now. Flexicurity
was not invented by Wilthagen,
but by the social partners when we
advised the Dutch government on
flexibility and security in 1996.
Since then it has been an ever
increasing factor in determining working relationships in the
Netherlands. It is only now, as a
result of the crisis, that the political
dinosaurs are starting to realize how
useful an employer-focused approach
can be. The demand from sectors in
the region takes precedence. UWV
WERKbedrijf and the municipalities are joining in the process. As a
result, the sectors and regions are
becoming intertwined, almost of
their own accord. That is the future
facing Wilthagen. But in that order,
not the other way around.”
22
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
23
research portraits
Early retirement seems a hardwired character trait of the Dutch
One country’s success story
may not work in another
Name: Harry van Dalen
Position: Senior researcher
Department: Department of Economics; Netherlands Interdisciplinary
Demographic Institute
Research: Ageing labour force, migration, pension finance, public sector economics,
population policies, the history of economic thought, the economics of economics
Name: Irmgard Borghouts
Position: : Senior researcher
Institute: ReflecT, Research Institute for Labour Market Dynamics and Social
Cohesion at Tilburg University
Research: A European comparison of employment security systems
“
I like to say that my specialization is that I have no specialization. My interests cover a wide range of subjects,
varying from labour market issues and demography to
something outlandish as a cost-benefit analysis of the
Dutch monarchy or the firing of a soccer coach.
Right now, I am working on labour supply behaviour of
older workers and the attitudes and decisions of employers in hiring and retaining older workers. The central
question is very down-to earth and topical: To what extent
are older workers willing to work till 65?
This project is bound to have policy implications in the
Netherlands, especially in the current economic downturn.
Employers are tempted to fire older employees. Yet, it is of
utmost importance that older workers stay connected with
the job market. After one or two years they are permanently
lost for the labour market. Young workers are bound to be
hard hit by this crisis, but they generally have more resilience to switch jobs or sectors. My educated guess is that
once we are past the current crisis, we may need all the
workers we can get.
One of the main findings is that people retire far earlier,
close to two years, than they intended. They are willing to work longer than in the (recent) past, but their
ambitions get stranded. Early retirement is apparently
a hard-wired character trait of the Dutch labour market.
Reorganisations within the firm are generally a stimulus
to shed older workers, as these are the relatively ‘expensive’ workers in the eye of the employer.
As a researcher you are always looking for gems, elements
of behaviour that surprise you. In a way, a good researcher
shares some of the joys which a journalist must be after.
Looking for news that is fit to print. Researchers are after
news that an academic journal thinks would interest a large
audience. In that respect the ideal academic news story
should not only bring new ‘facts’ that shed light on the story,
but also the story itself. I hate stories that deal with the question of ‘how many angels can dance on the head of a pin’.
Surprisingly, I found that a considerable number of retirees with an early retirement benefit package still re-enter
the labour market, about one third. Of course, the number
of hours they make is small and the type of job is not
as stressful and demanding as it was during their ‘preretirement’ years.
I sometimes jokingly say that the subject of the ‘older worker’ is catching up with me. However, I once read that leading a productive life is also a matter of being in a position
that suits you best. In my case I hope that the love for new
facts and the curiosity for social and economic phenomena
never die. [RP]
”
“
It may seem a little cynical but the current economic
crisis appears to be a necessary precondition for the
Netherlands to actually do something about its employment security model. Especially when compared to other
countries, the Netherlands often takes knee-jerk decisions when faced with employment problems. Thanks to
the credit crisis, there is little chance of my research ending up tucked away in a drawer.
Every country has its own culture and approach when
it comes to offering support to people moving from one
job to another. The Netherlands has much to learn from
other countries. For example, Austria takes a conservative
approach with highly centralized regulation while socialdemocratic Sweden regulates many of its employment
issues on a sector-by-sector basis. With its Mediterranean
culture, Spain has less regulation and there is a stark contrast in the employment conditions enjoyed by those with
permanent contracts and those whose contracts are temporary. The United Kingdom is liberal and allows market
forces to play a central role in employment.
It is not possible to take what may be successful in one
country and simply transplant into another. The relationship between the different forms of regulation in any
given country cannot easily be undone. Denmark is often
praised for its approach to keeping people in work. But
this policy is based on three pillars. In addition to the
support offered to those seeking employment, they are
also given incentives in the form of generous benefits but
the law makes it easy for employers to dismiss their staff.
The system would no longer function if any one of the
pillars were removed. This means it makes no sense to
simply copy policy from another country as it cannot be
seen in isolation.
By organizing what we call an expert meeting to which
ministries, employer and employee organizations are
invited, I formulate controversial questions about the
employment security systems in other countries. I then
take a closer and critical look at the systems in the United
Kingdom, Sweden, Austria and Spain by means of indepth interviews with the social partners and representatives of government. Based on this, I plan to develop
a successful approach for a Dutch system.
My research proposal came long before the credit crisis.
It is now even more topical than it ever was. Although it
will take another two years before I can present my recommendations, it will still not be too late. In times of crisis, there are knee-jerk reactions on all fronts. Examples
of this in the Netherlands include reductions in working
times and introduction of mobility centres. By carefully
considering any future system and then implementing it,
we will be better placed to weather any future crisis.
The ageing population is an impending challenge we face
that will have major consequences for the support offered
to people when moving from one job to another. When
that time comes, the new flexicurity system will need to
be successfully up and running. [RV]
”
24
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
25
The reservoir of
alternative workers
How to meet the increasing demand for women and older staff
Previously unwelcome, women and older workers are increasingly
popular on the labour market. They are sorely needed in the light
of expected labour shortages. How do employers and employees
organize this increased participation in the labour market? The key
concepts are flexicurity and taking responsibility for oneself.
By Ellie Smolenaars
It is difficult to make any statements about labour market trends
in the middle of a financial crisis,
but academics fortunately tend to
focus more on the longer term.
“The credit crisis is a shift in financial trends with a ‘before’ and an
‘after’ phase”, argues Jaap Paauwe,
expert in organizational science:
“As soon as this crisis has passed,
major labour shortages will develop
in the longer term.” At the Tilburg
Research Institute for Flexicurity,
Labour Market Dynamics and Social
Cohesion (ReflecT) academics are
working on the latest developments.
In the near future, we will see the
powerful influence of two major
trends, according to its researchers:
flexicurity and taking responsibility
for oneself.
“Flexicurity offers the labour market
the best of both worlds: flexibility
and security”, says Jan van Ours.
Van Ours is Professor of Labour
‘The American approach
dominates the HRM
rather too much’
Economics. He is also a member
of the advisory committee to the
Danish National Institute of Social
Research. The European Union has
decided on the flexicurity strategy
and Denmark is a pioneering country. It is reasonably easy to dismiss
employees there, benefits are relatively high and the aim is to ensure
that people find a new job as soon as
possible. Van Ours closely followed
the Danish policy experiment in
which the unemployed were sent a
letter just a week and a half after losing their jobs providing full details
of the programme to assist them
in finding new work. He concluded
along with several Danish colleagues
that, surprisingly, it was not the content of the programme that reduced
the length of unemployment but the
threat of having to take part in the
programme. Its compulsory nature
had a motivating effect.
Flexicurity can therefore provide
a lesson in moving people rapidly
in and out of paid work. As a result
of demographics, there will be a
shortage of labour on the employment market, according to forecasts.
(c) Koen Verheijden / Hollandse Hoogte
26
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
isfied with part-time work. The same
research is currently underway in
the Netherlands and, anticipating the
results, Van Ours expects that women
in the Netherlands will also prove
not to be queuing up to work longer
hours. “Regardless of the number of
hours that they work, women continue to do most of the work in the
household. It will take a long time to
change that”, believes Van Ours. As
an economist, he refrains from making any normative statements about
the sharing of roles in the household.
But he has identified major changes.
“Public opinion on women in the
workplace has changed enormously",
says the labour economist. “In 1965,
85% of the Dutch population rejected
the idea of mothers with children at
school taking on a job, but 40 years
later this has dropped to only 10%.”
Working from home
Women and older people in particular will be targeted by employers.
They still represent a reservoir of
unused working hours. But when
will women work longer hours and
older people retire later?
Part-time workers remain something
of an enigma for labour market
economist Van Ours. “Our research
into part-time workers came
about after a discussion with my
Australian colleague Alison Booth.
She felt that women's part-time jobs
need to be converted into full-time
jobs in order to offer women equal
opportunities. But I suspected that if
you force women to work full-time,
they may actually withdraw from the
labour market.”
The economists therefore decided to
conduct research into the impact of
part-time work on whether people
felt happy or not. Their research in
Australia and the United Kingdom
showed that women are relatively sat-
The imbalance in the roles between
men and women within the household can, according to organizational
expert Jaap Paauwe, be partly attributed to the adoption of the American
corporate culture. “This is a more
macho culture where it is not customary for men to be able to work
four days and take on caring duties
at home”, explains Paauwe. In any
case, the Professor of Organization
and Human Resources feels that
the American approach dominates
the world of Human Resource
Management (HRM) rather too
much. In response to this, he wrote
the book published in 2004: HRM
and Performance: Unique approaches
for achieving long term viability. It
outlines an approach which focuses
on the longer term where other interests and values also play a role alongside those of shareholders. His ideas
are now slowly permeating the work
of young academics. Paauwe also analysed the Rijnland model of Human
Resource Management. How does it
differ from that in the Anglo-Saxon
world? “Compared to America, where
issues such as economic value and
shareholder value take precedence,
here in the Netherlands everyone,
within and outside companies, thinks
more in terms of stakeholders. In
the Netherlands, economic policy
must be seen to be fair and to have an
added and ethical value.”
‘The key question is: how
can we help people to
become more flexible?’
Another major upcoming trend in
every employment career is taking
responsibility for oneself and one's
choices. Paauwe: “The key question
is: how can we help people to become
more flexible?” This can already be
seen in practice among HRM professionals: “The extra days holiday
people are allocated in exchange for
working longer hours are now converted into a single unit, money.
This enables people to make their
own choices. The role of HRM is to
make this easy to understand.” He
also sees flexicurity as an up-andcoming issue in many companies.
“The idea of a lifelong career at
27
Philips lasting 38 years and culminating in a golden watch is no longer.
At Philips, people are awarded 1000
E-miles - the E stands for employability - which employees can spend on
career support and coaching. At KPN
(Dutch telecommmunications company, ed.) , everyone is given a training budget of a thousand euros.
This is a good thing. We need to
bring an end to the attitude of 'I'm 53
now and have another seven years to
work.”
Companies should provide training
especially to older workers to raise
their awareness of their physical
health. Paauwe: “At steel manufacturer Corus, they have launched a
campaign on obesity. It emerged that
obesity caused numerous problems
and led to absenteeism. The campaign, which included health checks,
advice on fitness and sports facilities,
cost just one sixth of what they would
have spent on sick leave and incapacity for work. Even the director had
to go to the gym.” Labour economist
Van Ours also sees potential capacity
especially among older workers.
In his research into the productivity
of older workers, he was surprised to
see that it is not possible to demonstrate a clear reduction in productivity. “If you look at the speed at which
secretaries type, the younger ones are
much faster but they are also much
slower readers.”
As a moderator for the Sociale Kring
and the Club van 11, Dutch forums in
which the major companies engage
28
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
29
interview
in informal debate on the future of
the economy, best practices is a key
concept for Paauwe. He believes that
there is too little awareness of the
major efforts made by HRM managers in large companies. Examples
include Philips which every year
employs 100 to 200 people who have
become alienated from the employment market. The professor in
Organization and Human Resources:
“Fairness is important in the Dutch
business world.” But Paauwe also
warns against presenting too rosy
a picture of the situation for vulnerable groups. “Again and again you see
Labour participation
in the Netherlands,
1995-2008
Working population as a percentage
of potential work force
54%
40%
Source: CBS Statline,
The 37,2%
Hague/Heerlen
Professor of Sociology Paul de Graaf on work
values in Europe
54%
40%
46,6%
37,2%
55,2%
46,6%
41,4%
41,4%
31,2%
31,2%
21,9%
21,9%
15-25
25-50
1995
15-25
50-65
25-50
15-25
1995
50-65
25-50
2000
15-25
50-65 year
39,9%
39,9%
35,6%
35,4%
35,6%
Male
Female
67,7%
64%
Male
Female
15-25
25-50
2005
15-25
50-65
44%
25-50
15-25
2005
67,3%
67,3%
64%
38.7%
50-65 year
74,6%
74,6%
67,7%
25-50
2000
91,9%
91,9%
89,1%
89,1%
For years, everybody's approach to
retirement was: if you can arrange it
with your boss, why not retire at the
age of sixty? It was like the call of the
sirens; an early pension was attractive and tempting. But now there has
been a clear shift and older workers
are in much more demand.
64,7% 63,4%
64,7% 63,4%
55,2%
“
91,7%
91,7%
88%
88%
35,4%
50-65
25-50
2008
“The focus of work
has moved towards
intrinsic values”
that when there are shortages on the
employment market, it all works perfectly well, but when the employment
market becomes saturated, these vulnerable groups are quickly sidelined.”
44%
43,5%
38.7%
15-25
50-65 year
43,5%
25-50
2008
50-65 year
Every nine years, as part of the
European Values Study (EVS) we
conduct research into citizens'
values across all kinds of areas. In
2008/2009, the fourth set of data
was collected and we plan to publish
the latest results at the end of 2009.
This time we have information from
all 45 European countries (including more than 100,000 inhabitants).
What is interesting is that we now
have a data set covering a time period
of 27 years and can start analysing
any historical changes.
Based on earlier surveys, we have
noticed a shift in thinking about
employment in Western countries.
In the past, people considered work to
be a necessary evil, a way of earning
their daily bread. But as prosperity
increased, the focus of work moved
towards more intrinsic values: self-
development and self-expression.
People are keen to choose the work
that they do and the number of hours
they spend doing it. This trend can
be seen in all countries that become
more prosperous. Retirement around
the age of sixty is part of that pattern.
People expect more
from government in
terms of supporting their
private interests quickly
and immediately
Sociologists argue that the growth
of prosperity has led to a rise in
post-materialistic values. Personal
autonomy has also become increasingly important to the people in
areas other than work, such as family
life, religion and lifestyle. There has
also been an increasing tolerance
of alternative lifestyles. In general
terms, as prosperity increases people
become more tolerant or more able to
accept that there is no such thing as a
standard lifestyle. People also become
more focused on themselves because
they expect more from government
in terms of supporting their private
interests quickly and immediately.
That is not necessarily a good thing
for society as a whole.
We have already conducted a series
of provisional evaluations for the
Netherlands based on the new data
from the European Values Study.
In 2008, the Dutch have become less
permissive than they were in 1999:
this applies to tolerating drugs for
example, sexual morality and divorce.
But they continue to set great store by
personal freedom and allow others to
lead the lives that they choose.
There is nothing to suggest that we
should expect major disquiet to develop as a result of the scrapping of all
sorts of attractive pension schemes.
What does seem to me to be important is that there should not be too
much variation in retirement age.
As long as other people also have to
continue to work for longer, it is no
great a burden to have to work a few
extra years yourself, especially if the
work is enjoyable. [TB]
”
For more information on the
European Values Study, see
www.europeanvalues.nl.
30
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
31
research portraits
More flexible work improves
chances of employment
Gradual retirement is what
half the people really want
Name: Ruud Muffels
Position: Professor
Department: Sociology
Research: Dynamics of the employment market, income, comparisons of welfare states
Name: Tunga Kantarci
Position: PhD candidate
Department: Department of Econometrics and Operations Research
Research: An Empirical Analysis of Preferences for Gradual Retirement
“
People at the peak of their lives in terms of combining
their work and family must be given the opportunity to
do this effectively. Forcing employees to work fixed hours
flies in the face of what they want. If employers enable
them to manage their time flexibly, offering increased
options for part-time working or working from home, this
increases the chances of being effectively deployed. It is
also much easier for women to pursue a career. Clocking
working hours is a thing of the past; what matters now is
the quality of the contribution and the final product. In
terms of working time regulations, Scandinavia leads the
way and the Netherlands is trailing behind.
Until the year 2000, the ageing population was a key
issue but lacked urgency. This is no longer the case. In
neighbouring countries, the retirement age has already
been increased to 67. Delaying the retirement age can
prevent shortages on the employment market when the
recession ends and help deal more effectively with the
consequences of the ageing population. People who would
have preferred to retire earlier, can perhaps begin to work
part-time and approach their pension slowly - what we
call gradual retirement. The employment market needs to
become much more flexible in terms of the time and the
way in which people stop working.
Creating possibilities for specific groups such as older
workers, but younger ones as well, in order to maximize
their chance of employment is of major importance. This
applies especially in a recession. In the Netherlands, many
less educated workers fall by the wayside. They would benefit from additional education, training and support from
older coaches for example, who have started to work parttime as they gradually approach retirement. This creates
a dual form of learning and working.
But in the current crisis situation, unemployment is
increasing and there is a greater need both for flexibility
and increased security on the employment market. The
times when you worked lifelong for a single employer and
were entitled to a generous pension after 40 years are no
longer. This is why our research has focused for several
years on the relationship between flexibility and security
and how this changes over the course of a lifetime. In
other words, what we call flexicurity: the ability to take
a flexible approach to deploying work and specific tasks
depending on the age of an individual employee. The
aim is not to offer a lifetime guarantee of one and the
same job, but to provide security and guaranteed employment. This led to the establishment earlier this year of the
ReflecT Institute, bringing together lawyers, sociologists
and economists. [TB]
Self-employed people with no staff are also suffering and
deserve a helping hand. The government could introduce
fiscal measures designed to help finance their training.
All of this requires flexibility on the part of employers,
employees and government, but it also requires vision.
This period of recession offers the perfect opportunity
to develop our ideas on flexicurity. This is a task faced by
everyone involved, including government.
”
“
Retirement used to be a step off a cliff. Up to some age
most people work full time. Then the day arrives when
they stop working all at once. As a result, they experience
abrupt changes not only in their financial but also in
their social and psychological position to which it might
be hard to adapt. Common sense suggests that we should
decrease our working hours gradually, by working parttime for several years before we fully retire. What we find
interesting is that this is not what people are doing.
A first set of results shows that about half our sample,
consisting of two thousand respondents, prefer working
part-time before retiring fully. Furthermore, they prefer
to start to work part-time no earlier than the age of 60
and no later than 66; work three days a week; work with
their former employer; spend three to four years in this
position; and access to 15 to 30 percent of their pension
benefits at the expense of reduced final benefits, during
part time work.
That is why our main research question is whether
people would prefer a gradual instead of abrupt transition into retirement. Gradual retirement, I mean working part-time before retiring fully, might keep people
employed longer, improve the well being of the elderly
and smoothen their consumption patterns. Apart from
financial considerations, it has the psychological advantage that workers get the chance to adjust to more leisure
time, to develop new interests and activities. It would be
particularly attractive for those whose health imposes
restrictions on work but who do not want to give up their
status as a worker, because they feel committed to work
and want continue to contribute to society by working.
Another advantage of gradual retirement is that it would
ease the financial burden of an aging population for the
macro-economy.
However, implementation of part-time retirement might
take time. Our next step is to study the socio-economic
determinants of these preferences and to analyze why
they are not realized at the labour market.
What appeals most to me in this research is the econometric modelling of preferences. This includes survey
design, data collection, and modelling of the data. While
researching the topic interesting questions come along.
Therefore I think I will be investigating this beyond the
years allocated to my PhD position. I like doing research
because it gives me a chance to contribute to the literature and to society. Inspired by my supervisor, Professor
Arthur van Soest, and facilitated by my faculty and by the
Netherlands Organisation for Scientific Research (NWO),
I am trying to realize this contribution. [MP]
”
32
Tilburg Research - 2009, volume 6, number 1
Tilburg Research - 2009, volume 6, number 1
33
NEWS
The ageing population: an alternative argument for reform?
Dynamic indicators to monitor European labour market
By Ton Wilthagen
Tilburg University’s ReflecT research institute was recently
awarded a contract by the European Commission to work
on the development of indicators to measure flexicurity.
The project is being spearheaded by Professor Ruud Muffels
of ReflecT and the Faculty of Social Sciences, who is a
European authority on the subject.
In order to tackle the issue of an ageing population, the
Dutch government introduced cuts and reforms.
But since then, this image of the future has shifted from
being sombre to one that is slightly more optimistic: threats
have become opportunities. Justifiably so? Expert in policy
administration Martijn van der Steen examined how images
of the future can influence policy.
From as early as 2000, the Dutch government took the
view that the existing welfare state was no longer sustainable in the face of an ageing population. Until 2003, this
view took on crisis proportions: the ageing population was
seen as a threat to future generations who would need
to work extra hard to care for their ageing counterparts.
There would no longer be any increasing prosperity unless
there were permanent socio-economic reforms. These
reforms came: the various early retirement schemes were
scrapped, pensions would no longer be based on the
final salary and the benefits system was reformed. This is
remarkable because fundamental policy changes generally
take place after a clear and visible crisis whereas the ageing population was nothing but a future prospect.
After 2006, the government no longer regarded the ageing population as a threat. The ‘grey generation’ suddenly
became ‘silver’ and cuts were less stringent, investment
became possible. This was despite the fact that nothing
had changed in terms of future prospects.
Was the problem of the ageing population suddenly
‘solved’ or was this impending crisis merely a story cooked
up to facilitate reforms? Will the current financial crisis
also result in a new version of this ageing population issue
or will it lead to genuine policy changes based on the current reality? In his PhD thesis, ‘Een sterk verhaal' (A likely
story), Van der Steen shows that changing perspectives
on future problems have a direct influence on policy.
He analysed official government documents, debates in
Parliament, newspaper and other articles and oral sources
from the period 2000-2007. His conclusion: something
that does not exist and of which we know nothing can
actually lead to fundamental reforms. Van der Steen
believes that the financial crisis will act as a new justification for the implementation of far-reaching reforms in the
institutions of the welfare state.
The European Commission aims to ensure developments
on the European labour market can be effectively monitored
since it has set the goal of promoting both flexibility and
security on the labour market. To achieve this, key indicators are essential to gauge whether member states are making sufficient progress. Currently, there are only provisional
indicators in place and intensive research is now underway
to identify definitive standards. This is a tricky area, both
politically and in terms of wider society. Once the indicators
have been set, member states will be assessed and compared in terms of their achievements, in a process known
as benchmarking. Any individual countries that score poorly
across a range of indicators will be called to task.
The ReflecT research institute was recently awarded a contract by the European Commission to work on the development of indicators to measure flexicurity. The project is
being spearheaded by Professor Ruud Muffels of ReflecT
and the Faculty of Social Sciences.
Developing effective indicators presents both a social and
an academic challenge. Often, it involves the use of static
indicators alone, for example the percentage of people
receiving unemployment benefit at any given moment.
But flexicurity is a dynamic concept, since it relates to shifts
and mobility in the labour market and within companies.
It therefore also calls for the use of dynamic indicators, such
as the extent to which unemployed people return to work
within a specific period or the consequences of a period
of unemployment on an individual’s subsequent status in
terms of income and the labour market.
For more information on flexicurity research, see
www.tilburguniversity.nl/reflect.
Healthy Europeans delay retirement
By pressing a button, European Commissioner Janez Potocnik
recently published new online data from the Survey on Health,
Ageing and Retirement in Europe, SHARE for short. The data
include information about 30,000 European citizens over the
age of fifty in fifteen different countries and paint a picture
of their lifestyles. Economists from Tilburg University established the European databank in the wake of the success of its
American version.
The SHARE infrastructure, subsidized by the European
Commission, was launched in 2003. Every two years it
churns out a new set of data based on interviews. The latest
data reveal for instance that people who are fit and healthy
are retiring approximately two years later. If we invest 3% of
GDP in preventive health care, it will be possible to maintain
the employment potential despite the ageing population.
Good working conditions can also play a role in later retirement. Working conditions are better in northern Europe
than in the south. Poor working conditions go hand-inhand with poor health and a tendency towards depression.
Northern Europeans are healthier, but southern Europeans
live longer.
The SHARE infrastructure contains data about health,
socio-economic status and social and family networks.
It offers unique insights into the ageing population of
Europe, by exposing national differences in terms of the
economy, culture and social structures. Tilburg University’s
CentERdata Institute developed the measurement tool that
is used to compare the data from different countries.
More information about the SHARE infrastructure is
available at www.share-project.org.