ABSTRACT

This chapter focuses on the interplay and possible relations between new technology and work, including different scenarios for how strong the possible impact will be on the number of, types and quality of jobs in the years to come. It will further discuss possible forms of interventions and policy actions states might take varying from no intervention to strong intervention especially with regard to education and active labour market policy. How, there is possible choices is part of the analysis, reflecting a varieties of capitalism approach. Theoretical issues of dualization and insider/outsider will further be presented as this is important in order to understand the historical development and the possible future of welfare states.

The analysis will thus relate to the varieties among welfare states and their different ability to cope with the changes in the labour market as a consequence of new technology and its impact on welfare state development. Overall, the chapter points to the fact that there are options available for welfare states, at least to modify the effect on the technological impact of jobs on the labour market, but also in ways to find viable options to finance welfare states. These options are needed even if the long-term impact on the number of jobs are less strong than one at the outset might expect, as there, as part of the transition on the labour markets, will be losers – as well as winners. Policies focusing on up-skilling and training will be important, as well as social security benefits helping in reducing possible increases in inequality, but also as a way to have automatic stabilisers to smooth the impact of macroeconomic development and fluctuations.