Chronic Unemployment: A New Concept for Capturing Weak Labor Market Attachment
DOI:
https://doi.org/10.18291/njwls.158790Keywords:
Employment, Wages, Unemployment & Rehabilitation, Labor Market Institutions & Social PartnersAbstract
In this article, we develop, unfold, and explore the concept of ‘chronic unemployment’ to capture a segment that is weakly attached to the labor market because of repeated spells of unemployment, interrupted only by shorter intervals of temporary employment, inactivity, and/or participation in active labor market policy measures (ALMP). We do this to capture this segment more adequately than conventional long-term unemployment statistics. We analyze unemployment trajectories of chronically unemployed individuals across different labor market and welfare regimes over more than 10 years based on longitudinal and comparable register data in Denmark, Germany, and Finland. We find that in these developed welfare states, unemployment of a more chronic character is a much wider problem than what conventional statistics reveal, and that sustainable integration into gainful employment at the open labor market is a distant goal for a considerable share of the group.
References
Aho, S. (2004). Kroonisen työttömyyden laajuus, rakenne ja syntytausta. (The extent, structure and origin of chronic unemployment). Työpoliittinen tutkimus 261. Helsinki: Työministeriö (Ministry of Labour).
Aho, S. & Arnkil, R. (2008). Suomen työvoimapolitiikan ja työvoimapalvelujen kehityksen käänteet pohjoismaisessa kontekstissa. (The turns in the development of Finnish labor market policy and employment services in the Nordic context). In T. Heiskanen (Ed.), Kohti uutta työelämää? Tutkimuksen näköala työelämän kehitykseen (pp. 46–77). Tampere: Tampere University Press. http://urn.fi/URN:NBN:fi:uta-201705241682
Aho, S. & Mäkiaho, A. (2016). Krooninen työttömyys. Pitkään avoimien työmarkkinoiden ulkopuolella olleiden työttömien määrää ja rakennetta sekä työttömyyden dynamiikkaa Suomessa vuosina 2005-2013 selvittävä tutkimus. (Chronic unemployment. A study on the number and structure of the unemployed who have been outside the open labor market for long, and on the dynamics of unemployment in Finland in the years 2005-2013.). Publication series of the Government's analysis and research activities 20/2016.
Azzollini, L. (2023). Scar effects of unemployment on generalised social trust: The joint impact of individual and contextual unemployment across Europe. Social Science Research 109 (January 2023). https://doi.org/10.1016/j.ssresearch.2022.102787
Bredgaard, T. & Jørgensen, H. (2000). Was the Problem Solved? Danish Youth Unemployment Policy in the 1990s. Centre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet. Working Paper No. 3.
Card, D., Kluve, J. & Weber, A. (2018). What works? A meta analysis of recent active labor market program evaluations. Journal of the European Economic Association, 16(3):894–931. https://doi.org/10.1093/jeea/jvx028.
Çelikay, F. (2022/2023). Social spending and chronic unemployment: Evidence from OECD countries. Review of Economics and Political Science, 8(2):86–107. https://doi.org/10.1108/REPS-02-2022-0020.
Clasen, J., Clegg, D. & Goerne, A. (2016). Comparative social policy analysis and active labour market policy: Putting quality before quantity'. Journal of Social Policy, 45(1):21–38. https://doi.org/10.1017/S0047279415000434.
Cooke, M. L. (1915). Casual and chronic unemployment. The Annals of the American Academy of Political and Social Science, 59:194–199.
D’Agostini, A. & Titton, M. (2020). Youth in the context of chronic unemployment in Spain and Brazil. International Journal of Lifelong Education, 39(1):18–30. https://doi.org/10.1080/02601370.2019.1699178.
Datta, G. N. & Larsen, M. (2010). Evaluating labour market effects of wage subsidies for the disabled: The Danish Flexjobs Scheme. Available at: https://www.vive.dk/da/udgivelser/evaluating-labour-market-effects-of-wage-subsidies-for-the-disabled-the-danish-flexjob-scheme-5769/ (Accessed 13 June 2023).
Datta, G. N., Larsen, M. & Thomsen, L. S. (2015). Do wage subsidies for disabled workers reduce their non-employment? - Evidence from the Danish Flexjob scheme'. IZA Journal of Labor Policy, 4(1):10. https://doi.org/10.1186/s40173-015-0036-7.
Emmenegger, P., Häusermann, S., Palier, B. & Seeleib-Kaiser, M. (2012). The age of dualization: The changing face of inequality in deindustrializing societies. International Policy Exchange Series. Oxford: Oxford University Press. https://doi.org/10.5167/UZH-65793.
Esping-Andersen, G. & Regini, M. (eds.) (2000). Why Deregulate Labor Markets? Oxford: Oxford University Press. https://doi.org/10.1093/0199240523.001.0001.
European Commission (2007). Towards common principles of flexicurity: More and better jobs through flexibility and security. Available at: https://eur-lex.europa.eu/legal-content/FR/ALL/?uri=CELEX%3A52007DC0359 (Accessed 13 June 2023).
European Commission (2023). Databases and indicators. The LMP database. Available at: https://ec.europa.eu/social/main.jsp?catId=1143&intPageId=3227&langId=en (Accessed 13 June 2023).
Fervers, L. (2021). Healing or deepening the scars of unemployment? The impact of activation policies on unemployed workers. Work, Employment and Society, 35(1): 3–20. https://doi.org/10.1177/0950017019882904.
Gallie, D. (2002). The polarization of the labor market and the exclusion of vulnerable groups. In Isaksson, K., Hogstedt, C., Eriksson, C & Theorell, T. (eds.). Health Effects of the New Labor Market. New York: Springer, pp. 245–266. Available at: https://link.springer.com/chapter/10.1007/0-306-47181-7_18 (Accessed 13 June 2023).
Gangl, M. (2006). Scar effects of unemployment: An assessment of institutional complementarities. American Sociological Review, 71(6):986–1013. https://doi.org/10.1177/000312240607100606
Ganzer, A., Schmucker, A., vom Berge, P. & Wurdack, A. (2017). Sample of integrated labor market biographies - regional file 1975-2014. FDZ-Datenreport, 01/2017.
Gehrke, B., Lechthaler, W. & Merkl, C. (2019). The German Labor Market during the great recession: Shocks and institutions. Economic Modelling, 78:192–208. https://doi.org/10.1016/j.econmod.2018.09.022
Gialis, S. (2019). Precarious lives: Job insecurity and well-being in rich democracies: By Arne L. Kalleberg Cambridge: Polity Press, 2018. Economic Geography, 95(5):524–526. https://doi.org/10.1080/00130095.2019.1665464.
Hansen, H. & Lorentzen, T. (2018). Work and welfare-state trajectories in Norway over two decades: Has the goal of getting more people into work been achieved? International Journal of Social Welfare, 28(3):246–259. https://doi.org/10.1111/ijsw.12354.
Hobbins, J. (2016). Young long-term unemployed and the individualization of responsibility. Nordic Journal of Working Life Studies, 6(2): 43–59. https://doi.org/10.19154/njwls.v6i2.4971.
Hohmeyer, K. & Wolff, J. (2012). A fistful of euros: Is the German one‐euro job workfare scheme effective for participants? International Journal of Social Welfare, 21(2): 174–185. https://doi.org/10.1111/j.1468-2397.2011.00830.x.
Holm, A., Høgelund, J., Gørtz, M., Rasmussen, K. S. & Houlberg, H. S. B. (2017). Employment effects of active labor market programs for sick-listed workers. Journal of Health Economics, 52:33–44. https://doi.org/10.1016/j.jhealeco.2017.01.006.
Howley, P. & Knight, S. (2022). Staying down with the Joneses: Differences in the psychological cost of unemployment across neighborhoods. Work, Employment and Society, 36(6): 1097–1117. https://doi.org/10.1177/09500170211003483.
Karjalainen, V. & Karjalainen, J. (2011). Kuntouttava työtoiminta kunnissa. Arvioita toiminnan järjestämistavasta ja kehityssuunnasta (Rehabilitative work experience in municipalities: Evaluations of the way of organizing and direction of development of action). THL: Raportti 46/2011.
Konle-Seidl, R. & Lüdeke, B. (2017). What harmonised and registered unemployment rates do not tell. IAB-Forschungsbericht (research report) 6/2017.
Konle-Seidl, R. & Rhein, T. (2018). Long-term unemployment: a European comparison. In: IAB-Forum H. 23.02.2018
Krug, G. & Eberl, A. (2018). What explains the negative effect of unemployment on health? An analysis accounting for reverse causality. Research in Social Stratification and Mobility, 55:25–39. https://doi.org/10.1016/j.rssm.2018.03.001
Lietzmann, T., Ramos Lobato, P., Trappmann, M. & Unger, S. (2019). Leistungsberechtigte mit gesundheitlichen Einschränkungen: Nicht jeder ist erwerbsfähig (Beneficiaries with health restrictions: Not everyone is fit for work). Available at: https://www.iab-forum.de/leistungsberechtigte-mit-gesundheitlichen-einschraenkungen-nicht-jeder-ist-erwerbsfaehig/ (Accessed 13 June 2023).
Mooi-Reci, I. & Ganzeboom, H. B. (2015). Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980–2000. Social Science Research, 55: 642–658. 10.1016/j.ssresearch.2014.10.005
Mousteri, V., Daly, M. & Delaney, L. (2018). The scarring effect of unemployment on psychological well-being across Europe. Social Science Research, 72:146–169. 10.1016/j.ssresearch.2018.01.007
Oivo, T. & Kerätär, R. (2018). Osatyökykyisten reitit työllisyyteen - etuudet, palvelut, tukitoimet (Pathways to employment for people with partial work ability - benefits, services, support measures: Rapporteurs' report). Reports and Memorandums of the Ministry of Social Affairs and Health, 43/2018.
Oorschot, W. V. & Abrahamson, P. (2003). The Dutch and Danish Miracles revisited: A critical discussion of activation policies in two small welfare states. Social Policy & Administration, 37(3): 288–304. doi: https://doi.org/10.1111/1467-9515.00339.
Ralston, K., Everington, D., Feng, Z. & Dibben, C. (2022). Economic inactivity, not in employment, education or training (NEET) and scarring: The importance of NEET as a marker of long-term disadvantage. Work, Employment and Society, 36(1):59–79. https://doi.org/10.1177/0950017020973882
Rhein, T. & Stüber, H. (2014). Beschäftigungsdauer im Zeitvergleich; Bei Jüngeren ist die Stabilität der Beschäftigung gesunken (Employment stability has declined among younger cohorts over time). IAB-Kurzbericht, 03/2014, Nürnberg.
Sherraden, M. W. (1985). Chronic unemployment: A social work perspective. Social Work, 30(5):403–408. doi: https://doi.org/10.1093/sw/30.5.403.
Schmillen, A. & Möller, J. (2012). Distribution and determinants of lifetime unemployment, Labour Economics, 19(1): 33–47. https://doi.org/10.1016/j.labeco.2011.06.013.
VIVE (2022). Jobcentrenes beskæftigelsesindsats (The employment services of the Jobcentres). The Danish Center for Social Science Research. Available at: https://www.vive.dk/da/udgivelser/jobcentrenes-beskaeftigelsesindsats-17812/ (Accessed 13 June 2023).
Vulkan, P., Saloniemi, A., Svalund, J. & Väisänen, A. (2015). Job insecurity and mental well-being in Finland, Norway, and Sweden. Nordic Journal of Working Life Studies, 5(2):33–53. https://doi.org/10.19154/njwls.v5i2.4792.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Author and Journal

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The Copyright Holder of this Journal is the authors and the Journal. Normally the journal use the CC-BY NC-ND 4.0 licence.
Exceptions to the license terms may be granted
If you want to use content in the Journal in another way then described by this license, you must contact the licensor and ask for permission. Contact Annica Asp at annica.asp@kau.se. Exceptions are always given for specific purposes and specific content only.
Sherpa/Romeo
The Journal is listed as a blue journal in Sherpa/Romeo, meaning that the author can archive post-print ((ie final draft post-refereeing) and author can archive publisher's version/PDF.
Copyright of others
Authors are responsible for obtaining permission from copyright holders for reproducing any illustrations, tables, figures or lengthy quotations previously published elsewhere.
Archives policy
All published material is archived at the Danish Royal Library in conformity with the Danish rules of legal deposit.
Plagiarism screening
We do not screen articles for plagiarism. It is the responsibility of the authors to make sure they do not plagiate.






