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Public sector adjustments in Europe: scope, effects and policy issues

(Eds.) Geneva, International Labour Office, International Labour Office, (June 2012)Conference organized by the International Labour Office in cooperation with the European Commission, Brussels, 21–22 June 2012.

Abstract

After a first series of policy responses to the 2008–09 crisis that aimed at sustaining internal demand through expansionary anti-crisis packages, most European governments – starting with Greece, Ireland, Bulgaria and Romania followed by many others – have put in place, in a second period, a series of restrictive budgetary policies aimed at reducing their budgetary deficit. With this new series of policies, a significant number of jobs and wages have been cut in the public sector. A number of expenditure items related to education and training have also been cut. These reforms have given rise to waves of protest throughout Europe. The aim of this volume is to study this “public sector shock”. While budgetary reforms are being pursued with the aim of ensuring a more balanced and sound economic policy, they may generate new work inequalities, among public sector employees in general but particular among, for instance, women, who account for a considerable proportion of public sector employment. Cuts in education and training may also have an impact on the equality of human capital in both the public and private sectors, despite the fact that the recent crisis has shown the value of education, with employees with more skills and training better managing to maintain their jobs and incomes. What types of reform have been implemented in the public sector? And what are their implications, both short and long term? On the economic side, what will be their impact on wages, and on job quantity and quality? On the social side, what will be their effects on inequality and social cohesion? And what will be the outcome for – and potential role of – the social partners and social dialogue? On the basis of a comparative and comprehensive assessment, illustrated by case studies for instance in education, health or public administration, policy issues will be discussed with the aim of finding the right mix of public sector reforms.

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