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Working and ageing
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heuristic – vision of new social and economic dynamics in societies. Moreover,
the concept stresses the relevance of transitional labour markets for future
labour-market research and policies. Individualisation in society leads to
discontinuous life cycles and working life patterns. In the future, continuous
transitions in and out of work will increasingly determine individual working
life and drive the way labour markets function. As a framework for the changes
in individual work patterns and their consequences for passive and active
labour-market policies, the analytical concept of transitional labour markets is
very fruitful. It enables better understanding of institutional arrangements that
support both flexibility and security to make it easier to move from precarious
to stable jobs or to deal with discontinuities in the life cycle. The concept allows
assessing practices in Germany and other European countries against criteria
for good transitional labour markets, to compare them and to benefit from
common learning (Schmid, 2006).
Transitional labour markets are characterised by both continuous transitions
of persons within labour-market segments (part-time/full-time employment and
unemployment) and transitions to other socioeconomic segments (such as
education, care and retirement). The concept is heuristic, first and foremost,
and should be seen as a framework for research design to grasp the
relationships between the core labour market ( ) and other societal situations.
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However, it also describes institutional labour-market structures and strategic
policy options for passive/active labour-market policies, for example
implementation of policies and measures that change institutional
arrangements. Measures that aim to increase employment have to consider
framework regulations put in place by, for example, the State. Figure 3.2 gives
an overview of the concept by outlining the different flows.
The core of this concept is that individuals will not occupy one fixed position
during their working lives, but several. This of course means a substantial
break with the traditional approach where individuals occupy unique positions
with unique time sequences during their working lives. Moreover, the concept
encompasses people occupying several positions at the same time (such as
combining part-time work with care) – in this case, the important link with the
core labour market can continue to exist. This analytical scheme can be
interpreted at individual level, with reference to the individualʼs life cycle and
working life. It then shows how individuals can have several employment
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( ) The core labour market is characterised by fairly stable jobs, relatively steady wage rises often
confirmed by collective agreements, working and health measures or employee representations,
while labour conditions at the periphery are precarious (temporary work contracts, shorter working
time, lower wages, hazardous working conditions, etc.).