A Knowledge Economy Paradigm and its Consequences
Luc Soete
#2006-001
During the 1980s and 1990s "Active labour" market reforms opened up
labour markets in Europe, making them more flexible without putting in
jeopardy the essence of the social security protection model. Countries
that went furthest in such "active labour" market reforms such as the
UK, the Scandinavian countries, and the Netherlands witnessed not just
reductions in unemployment, but also impressive increases in employment
participation rates, particularly among underrepresented groups in the
labour market. The challenge today appears more or less similar, but
this time with respect to knowledge. Interestingly, it is those EU
Member States that have succeeded most in "activating" their labour
markets and developing better functioning social welfare models that
have performed best in terms of knowledge investments. This suggests,
that success in boosting knowledge investment generates the public
resources for the development of social welfare models capable of
addressing rapid change, and in particular the global changes of the
21st Century.
ISSN 1871-9872