Table A.14: Impacts of packages ECONOMIC AUTHORITIES - Impact on business (SME included) - Employment (mobility, transitions, skills, - Budgetary consequences labour market segmentation) -Operating (labour costs) and conduct of - Public authorities organisation business - Working conditions - Competitiveness and unfair competition - Social protection (income insecurity, poverty, precariousness, inequality) COSTS BENEFITS COSTS BENEFITS COSTS BENEFITS A Unfair competition Social dumping Negative impacts No extra cost (BASELINE) on the sustainability due to Absence of level playing Individualisation of of social security reorganisation field below employment social risk systems by of the social and contract forms distorts weakening the security Increase of competition and factor revenue base systems precariousness allocation Higher poverty risk Restrained mobility and for increasing share of employment transitions Possible increase people in the labour in cost of last resort Decreasing stabilisation market safety nets (social role of social security assistance, Increase of intra and minimum pensions inter-generational etc.) inequality PACKAGE B Some increase in the cost Some improvement Depending on More pronounced reduction Noticeable cost of Possibly of managing fluctuations in of labour market financing choices, of number of self-employment extending coverage some reduction production in line with dynamism (depending some redistribution and non-standard workers at (to be borne by of the some cost increase of NSE on the rate of opting-in) within the newly risk of poverty, when the social public authorities, expenditure on and SE. covered, as affected risk materialises (will depend i.e. taxpayers, or the last resort unequally by benefits on the rate of opting-in), concerned groups
Table A.14: Impacts of packages ECONOMIC - Impact on business (SME included) -Operating (labour costs) and conduct of business - Competitiveness and unfair competition - Employment (mobility, transitions, skills, labour market segmentation) - Working conditions - Social protection (income insecurity, poverty, precariousness, inequality) AUTHORITIES - Budgetary consequences - Public authorities organisation COSTS BENEFITS COSTS BENEFITS COSTS BENEFITS A (BASELINE) Unfair competition Absence of level playing field below employment and contract forms distorts competition and factor allocation Restrained mobility and employment transitions Decreasing stabilisation role of social security Social dumping Individualisation of social risk Increase of precariousness Higher poverty risk for increasing share of people in the labour market Increase of intra and inter-generational inequality Negative impacts on the sustainability of social security systems by weakening the revenue base Possible increase in cost of last resort safety nets (social assistance, minimum pensions etc.) No extra cost due to reorganisation of the social security systems PACKAGE B Some increase in the cost of managing fluctuations in production in line with some cost increase of NSE and SE. Some improvement of labour market dynamism (depending on the rate of opting-in) Depending on financing choices, some redistribution within the newly covered, as affected unequally by benefits More pronounced reduction of number of self-employment and non-standard workers at risk of poverty, when the social risk materialises (will depend on the rate of opting-in), Noticeable cost of extending coverage (to be borne by public authorities, i.e. taxpayers, or the concerned groups Possibly some reduction of the expenditure on last resort