ABSTRACT
This chapter presents the two-stage process of policy adaptation and the argument introduces a chronological dimension in the study of labor market policy, by distinguishing between different stages in the adaptation process. It reviews the new postindustrial labor market risk structures and it moves on to an account of the policy trajectories adopted in response to deindustrialization in different groups of countries. The chapter shows how different responses are suitable for the service-based economies that are dominant today. It looks at how countries having embarked on suboptimal reform paths are now trying to shift to more efficient policy solutions. The chapter focuses on the emphasis on measures that reduced the labor supply was a policy that fitted well with the direction taken in employment policy. The new family policy developed by the Kohl government was a skilful move. It allowed him to do something popular with women, and to remain consistent with the policy option of containing labor supply.
