Federalism and Labour Market Policy

Book excerpt: Though these countries vary significantly in both their federal institutions and labour market policies, they all seek to define a relatively coherent approach for federal and sub-unit governments in a policy field where collaboration and coordination appear unavoidable. In some cases, such as Germany, collaboration is highly developed and policies are ambitious and integrated; in others, such as Switzerland, diversity and decentralization are privileged and policies remain fragmented. Finally, there are countries such as the United States that do not grant much importance to labour market policies. these five federations and so help us understand how political institutions and public policies are inter-related. Federalism and labour market policies certainly influence each other, but there is no simple relationship between them. Comparing different governance and employment strategies is nevertheless very instructive because it shows the range of approaches and policies that are possible in federal countries.