Social Risk Management Through Transitional Labour Markets


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Date: January 2008
Type: White Paper
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Overview: This essay takes the intrusion of the term ’Risk management’ into the social policy discourse as a ’Moral opportunity’ to reconsider the balance between solidarity and individual responsibility. The argument is developed in four steps: First, the psychology of intuitive beliefs and choices points to the bounded rationality of risky choices. Second, imperfect or strategic information may also cause biased risk perception. Third, the consideration of risk asymmetries and the reduction of information deficits do not yet provide clues for acceptable institutions of risk sharing. Fourth, conclusions for new directions in social and employment policies are drawn.

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