The Political Economy of Work Security and Flexibility

The recent economic crisis has shown us the dark side of deregulating the labor market: rising unemployment, limited access to social security and, due to low wages, depleted savings to rely upon in bad times. An emphasis on flexibility has led to inequality and insecurity, Fabio Berton, Matteo Richiardi, and Stefano Sacchi reveal in this compelling study of Italy’s embrace of nonstandard work contracts. Analyzing outcomes at the individual level, the authors contrast Italy with Germany, Spain, and Japan as they demonstrate the social and economic fallout of pursuing flexibility merely as a tool to reduce costs.