LABOR MARKET REFORMS IN FRANCE

a.
Study the welfare state model in Europe. How has this model led to the increase in
productivity and continuous growth of European economics in the post World War II period?
What are the present conditions that now warrant a change in the social model of Europe?
Suggested answer
A welfare state is a concept of government in which the state plays a key role in the
protection and promotion of the economic and social welfare of its citizens. These include
promotion ofemployment, improved living and working conditions, wage rates and working
hours, proper social protection (pension, unemployment benefits, housing, health care etc.),
dialogue between management and workers, the development of human resources for
permanent employment and the combating of dismissals. It is based on the principles of equal
opportunity, fair distribution of wealth, securing basic human rights and public responsibility
for those who are unable to avail the minimum requirements for a good life. The general
condition may cover a variety of forms of economic and social organization. France
establishes a comprehensive system of social security in 1946, after World War II. Social
security is a right of citizenship in France.
Welfare state led to the benefit of European economics
The welfare state involves a direct transfer of funds from the state to the services i.e.
healthcare, education as well as to the benefits of individuals. The French system of Social
Security is financed largely by contributions based on the wages of employees. The model
establishes peace between workers and management and facilitates growth in European
economies.
Dialogue between the social partners, information and consultation between management and
workforce are important aspects of the European Social Model. Social dialogue encourages
innovation and productivity, improves workers morale and provides them more control over
the tasks they perform. Workers rights in organisational matter help to create a skilled and
innovative workforce. Adequate benefit systems enable workers to respond constructively to
produce, rather than trying to resist it. High social standards benefit economic performance.
Social protection enhances the capacity of poor to escape from poverty. It stimulates the
involvement of poor people in economic growth, removes misconduct in a downturn and
contributes to social integrity and stability. It helps build human capital and manage risks, and
represents good value for money. By strengthening the employability of poor people and
enabling them to obtain health coverage and family benefits, the state promotes their
participation in the labour force. Welfare state thus builds self-reliance. Nearly 100 percent of
the French population is covered by the social security system.
Welfare model facilitates to fight poverty and redistribute wealth that achieves the higher
levels of equality in Europe than any other part of the world. Companies that involve
employees in reforming working environment reap the benefits in innovation and production
performance. In France, the average labour productivity has10-50% more over competitors
during 1953-70.Social model provides the best method available to structure the society in
order to make human life as satisfying as possible andit seems that the European welfare state

makes important contributions in developing the potential for improving the human
condition.
Conclusion
The European Social Model is an example of a society, based on social rights and solidarity,
where economic and social advancement take equal priority, and where proper work and
social protection combat poverty and social exclusion. Therefore, the success of Social Model
is not only important for Europeans, but also for developing proper economic environments
in other countries.