Social Protection against Unemployment and Activation in Labour Market

V. CONCLUSION
In the paper I figure out the basic information about social security and explanations how so called „social pillow” is used in order to prevent citizens from moving into poverty but at the same time taking into account limitation problem and thereby spending more effort on activation programs.
The most important issue beside unemployment is social protection against risk of becoming unemployed. Many states provide some unemployment benefits – insurance and assistance. Other tool of social protection is interventions in labour market that is provided by some kind of social protection programmes – active and passive labour market policies.
From OECD data analysis in 2005, I carried out comparison of seven different states from three different models of welfare states: the Nordic states – Finland, Denmark, Norway and Sweden, Continental countries – Germany, the Netherlands and Anglo-Saxon country – United Kingdom.
All states have unemployment insurance benefits for workers that are voluntary in Denmark, Finland and Sweden but compulsory in Germany, the Netherlands, Norway and United Kingdom.
Due to the article of Gallie & Paugam, 2000, the Nordic states are the most ‘universalistic’ and appoint that there haven’t been strong participations in working life to receive benefits, little differentiation within the level and duration of benefits and obligations to work and training are strict with exception of wage mobility. In Continental countries unemployment benefits are depend on merit which has been reached by making access to benefits depending on time spent in employment, by linking benefit levels to previous income and benefit periods to individual work records. Liberal model or Anglo-Saxon country represents easy access and trivial benefits for unemployed.
There are some states where unemployment insurance pays gross benefits and social security contributions as Denmark, Finland, the Netherlands, Norway and Sweden but there is the reduced rate for beneficiaries in Denmark and Finland. Whereas in Germany unemployment insurance and assistance benefits are not taxable but in United Kingdom beneficiaries don’t pay taxes or social security contributions as the credits, allowances or zero rate bands in long-run exceed the benefit level. In addition, unemployment assistance benefits are taxable or social security contributions are payable in Finland, Sweden and United Kingdom (OECD data).
According to article of Clasen & Clegg (2006) there are three different strategies of labour market adaptation: activation – increase the possibility of unemployed to find appropriate job and improve his/her employability, in exchange for receiving efficient employment services and benefit payment.…