Social risk management through transitional labour markets

This essay takes the intrusion of the term 'risk management' into the social policy discourse as a 'moral opportunity' to reconsider the balance between solidarity and individual responsibility. The argument is developed in three stages: first, the psychology of intuitive beliefs...

Full description

Saved in:
Bibliographic Details
Published in:Socio-economic review 2006-01, Vol.4 (1), p.1-33
Main Author: Schmid, Günther
Format: Article
Language:English
Subjects:
Emergency communications systems
Employment
Etymology
Labor market
Modernization
Public domain
Resignations
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This essay takes the intrusion of the term 'risk management' into the social policy discourse as a 'moral opportunity' to reconsider the balance between solidarity and individual responsibility. The argument is developed in three stages: first, the psychology of intuitive beliefs and choices provides evidence of the bounded rationality of risky choices. The paper demonstrates how the institutionalization of opportunity structures recommended by the concept of transitional labour markets can overcome various kinds of asymmetries in risk perception. Second, imperfect or strategic information may also cause biased risk perception. Examples, therefore, are provided of how the analysis of labour market transitions throughout the life course can considerably improve the methodology of risk management. Third, the consideration of risk asymmetries and the reduction of information deficits do not yet provide any starting point for constructing acceptable risk sharing institutions. Normative principles of justice therefore have to be reconsidered. It is suggested that Rawls' theory of justice should be enriched by Dworkin's ethical theory and Sen's capability approach.
ISSN:1475-1461
1475-147X
DOI:10.1093/SER/mwj029