Ⅰ. Background and Purpose
□ The Rise of New Social Risks
◦ Labor market policy which addressed social risk from unemployment and aging society based on welfare state aiming to full employment and social insurance, is facing mounting challenge from digital transformation
- The legitimacy of state bureaucrat and professional driven agenda setting, policy design, and execution process is also under scrutiny
- New social risks are surfacing from an increase in uncertainty in employment form, demand for work-life balance, demographic change most evident in low birth rates and aging population, and rapid change in job performance requirements
◦ Social innovation is a process that rediscovers values in ‘the social’ and identifies and
Social Innovation and Labor Market Policy
Kirak Ryu, Senior Research Fellow Tel: 044-415-5173 / e-mail: [email protected]
Summary
□ Social innovation is a process rediscovering values in ‘the social’ and resolving new social issues without reliance on the bureaucracy and professionals. This study examines the application of deliberative polling as a problem-solving process based on private/public solidarity and founded on deliberative democracy, in labor market policy decision-making process. For funding considerations, this research recommends the utilization of social innovation bonds, which attract private market investments to solve social issues and later compensate with public funds once the objective is achieved.
▸Key Words: Social Innovation, Labor Market Policy, Deliberative Polling, New Social Risk, Youth Basic Income,
resolves new social issues without reliance on the bureaucracy and professionals
- Study the meaning of deliberative democracy as a problem-solving process based on private/public solidarity in civil society, and explore the application of deliberative polling in labor market decision-making process to realize deliberative democracy
- Seek the possibility of adopting social innovation bonds, which attracts private market investments to solve social issues and later compensate with public funds once the objective is achieved, in labor market policy areas to source funding
Ⅱ. Main Contents and Results
1. Research Contents
□ Theoretical Discussion of Social Innovation
◦ Rediscover the value of ‘the social‘ and suggest new solutions to existing problems or identify new problems through voluntary civic participation and network
◦ Discuss the significance of deliberative democracy and deliberative polling
□ Survey the Awareness of New Social Risks and Role of Government
◦The risks that society members will face from rapid changes in socio-economic structure - New social risks are classified into four categories: ‘1) changes in job performance
requirements, 2) demand for work-life balance, 3) increase in employment uncertainty, 4) demographic changes’
- Survey of adults ages 19-64, with sample size of 1,500 adults
◦Domestic and Foreign Social Innovation Case Analysis
- Overseas: European Union’s Social Investment Package and associated social policy experimentations, U.S. WIRED (Workforce Innovation Regional Economic Development) Program case
- Domestic: Central government level ‘Economic, Social and Labor Council’, ‘The Presidential Committee on Jobs’, and ‘Office for Youth Policy Coordination’, Seoul Metropolitan Government and other local governments’ labor related committees and
public debate cases
◦Awareness Survey on Labor Market Issues and Agendas
- Perceptions on Youth Basic Income scheme and unemployment assistance-individual training Accounts
- Current status examination of labor market policy aimed at youth, unemployment assistance addressing blind spots in social insurance centered income security and employment assistance services, and individual training accounts supporting individual’s lifetime occupation aptitude development
- Executed deliberative opinion polling on Youth basic Income with a sub-group of awareness survey participants
◦Social Innovation Bond Case Analysis
- A measure to resolve social issues through performance contracting between private-public partnership, an innovative solution to funding challenges in labor market policies
- Review of Canada Quebec Province’s labor-sponsored solidarity fund (Fonds de solidarité FTQ), corporate direct investment, non-profit organization grants, private sector investment
2. Research Results
□ Public Awareness on Youth Basic Income Scheme and Unemployment Assistance-Individual Training Account Linkage Scheme
◦ Large gaps in labor market risk perception and appetite by gender-age groups
- Majority number of respondants agree that the government is providing appropriate support through guarantees with public aid (48.7%)
- 67.2% desires further government role in socio-economic security
New Social Risks Current Government Schemes Policy Target Population (Highest Risk Perception) Changes in Job Performance
Requirements Expand Education and Training Middle-aged Male Demand for Work-life Balance Work-life Balance Friendly Policies Youth Female, Core Working-age
Male Increased Uncertainty in
Employment Security Strengthen Job Security Middle-aged Male Demographic Change Strengthen Social Guarantee Middle-aged Female Data: Researcher Draft
<Priority Policy Areas by New Social Risks>
□ Public Awareness on Youth Basic Income Scheme and Unemployment Assistance-Individual Training Account Linkage Scheme
◦ 32.5% of survey respondents agreed for Youth Basic Income, 51.7% responded against, and 15.7% unsure
- The largest groups with positive response rate were Youth Male (39.4%) and Youth Female (40.7%), who are policy beneficiaries.
- Relatively low support from Middle-aged Male and Middle-aged Female with 35.6% and 31.7% positive response rates, respectively.
- Fairly low support from Core Working-age Male and Core Working-age Female with 28.3%
and 22.6% positive response rates, respectively.
Gender-Age Groups Agree Disagree Unsure Total
Male Youth (19-34 years) 39.41 45.34 15.25 100
Male Core Working-age (35-50 years) 28.32 56.29 15.38 100
Male Middle-age (51-64 years) 35.59 54.66 9.75 100
Female Youth (19-34 years) 40.74 40.28 18.98 100
Female Core Working-age (35-50 years) 22.63 59.49 17.88 100
Female Middle-age (51-64 years) 31.75 51.19 17.06 100
Total 32.53 51.73 15.73 100
<Chart 3-3> Results from 1st Opinion Survey on Youth Basic Income
Data: Researcher Draft
□ Changes in Opinions between Youth Basic Income Opinion Survey and Deliberate Opinion Poll
◦ Of the 32 deliberate opinion poll participants, 18 participants (approximately 56.3%) had no change in opinions, 14 participants (approximately 43.7%) had changes in opinion - Dynamic opinion changes based on positions on timing of Youth Basic Income discussion,
validity of common wealth dividends suggested by the supporters of Youth Basic Income, and issue of detailed funding plans for the policy‘s implementation
1st Opinion Survey-2nd Deliberative
Opinion Polling Agree Disagree Unsure Total
Agree (response, %) 3 6 1 10
30 60 10 100
Disagree (response, %) 4 15 1 20
20 75 5 100
Unsure (response, %) 1 1 0 2
50 50 0 100
Total (response, %) 8 22 2 32
25 68.75 6.25 100
<Chart 3-4> Opinion Changes in Youth Basic Income 1st Opinion Survey-2nd Deliberative Opinion Polling
Data: Researcher Draft
Ⅲ. Conclusion and Policy Suggestion
□ Systematize Civic Participation and Deliberative Governance in Existing Labor Market Policy Deliberative Bodies to Enhance Their Roles as Social Innovation Platforms
◦ Operational reform of Labor-Management Civil Government Councils or Employment Policy Council, Korea‘s main labor market policy deliberative bodies
◦ Operating around central government bureaucrats, experts, and related parties; however,
actual agenda setting and deliberations are processed as a formality
◦ Consider ways to provide policy testing means with democratic legitimacy based on civic participation governance
□ Invigorate Vocational Training that Prepares the Middle-aged Population with Skills Demand Driven by Digital Transformation
◦ Middle-aged males have the highest risk perception from increased employment uncertainty and changes in job performance requirements
◦ Support vocational training that strengthens individual competency through skills transformation and proficiency improvement, which allows the middle-aged population to continue self-reliance in the labor market and maintain secure employment
□ Micro-adjustment of Policy to Improve the Alignment Between Unemployment Support and Individual Training Accounts, Implement Civic Deliberative Polling
◦ The implementation of the National Employment Support System and expanded reorganization of the National Learning Card System represents the active and passive labor market policy restructuring from the unemployment safety net expansion perspective
◦ Consider delegating the deliberative polling of unemployment assistance and individual training account linkage to existing social dialogue institutions or consultative groups
□ Implement a pilot program for social innovation bonds in labor market policies
◦ Experiment social innovation bonds, operated by institutions such as the Industrial Skills Council, to target the realization of ‘social values‘ of employment vulnerable groups and the youth
◦ Korea Research Institute for Vocational Education and Training, a national policy research institution, participates as an evaluation agency
∙ Related Ministries: Ministry of Employment and Labor, Ministry of Health and Welfare
