Chapter

Do social investment policies produce more and better jobs?

Moira Nelson and John D. Stephens

in Towards A Social Investment Welfare State?

Published by Policy Press

Published in print November 2011 | ISBN: 9781847429247
Published online May 2012 | e-ISBN: 9781447305613 | DOI: http://dx.doi.org/10.1332/policypress/9781847429247.003.0008
Do social investment policies produce more and better jobs?

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This chapter examines the impact of social investment policies on employment in advanced industrial/post-industrial democracies. First, in a pooled time-series analysis of data on 17 countries from 1972 to 1999, it regresses employment as a percentage of the working-age population on seven indicators of social investment policy. The chapter finds that active labour market policy, daycare spending, sickpay and educational attainment are strongly, and tertiary and total education modestly, related to employment. Beyond just employment levels moreover, these policies, with the exception of sickpay, lead to the expansion of jobs in knowledge-intensive industries, which the chapter states to be good jobs. Second, the chapter explores the relationship between social investment policies and employment outcomes by introducing literacy scores. Because two key variables are only available cross-sectionally, its analysis is tentative, but it does provide evidence that its proposed link between social investment policies and employment, namely human capital accumulation, is valid.

Keywords: employment; education; knowledge economy; knowledge-intensive industries; skills; literacy; human capital; social investment

Chapter.  10570 words.  Illustrated.

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