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European Integration and External Constraints On Social Policy: Is a Social Charter Necessary?

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  • John Ermisch

Abstract

This article examines the conditions under which social policy would be constrained by European economic integration and assesses whether a Social Charter is needed. It provides a framework for interpreting the 'principle of subsidiarity', examines the potential for a direct effect of social benefits on the movement of people within the EC, investigates the impact of the taxes used to finance social policy on the location of businesses and people and the incidence of these taxes. As the degree of labour mobility in response to differences in real wages between EC countries is demonstrated to be crucial in deciding whether a Social Charter is necessary, a substantial part of the paper examines the evidence on the responsiveness of labour mobility, and it suggests little need for a Social Charter.

Suggested Citation

  • John Ermisch, 1991. "European Integration and External Constraints On Social Policy: Is a Social Charter Necessary?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 136(1), pages 93-118, May.
    • Handle: RePEc:sae:niesru:v:136:y:1991:i:1:p:93-118
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    Cited by:

    1. Sarah Brown & Kenneth Button & John Sessions, 1996. "Implications Of Liberalised European Labour Markets," Contemporary Economic Policy, Western Economic Association International, vol. 14(1), pages 58-69, January.
    2. Sandrine Cazes, 1993. "Protection sociale et intégration économique européenne," Revue de l'OFCE, Programme National Persée, vol. 43(1), pages 135-167.
    3. John Pickering & Duncan Matthews, 1999. "Rule Making in Pursuit of a Single European Market," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(3), pages 399-416.
    4. Filip Abraham, 1994. "Social protection and regional convergence in a European Monetary Union," Open Economies Review, Springer, vol. 5(1), pages 89-114, March.
    5. Whyman, Philip, 2002. "Living with the Euro: the consequences for world business," Journal of World Business, Elsevier, vol. 37(3), pages 208-215, October.
    6. Eric Smith & Tracy Webb, 2001. "Tax Competition, Income Differentials and Local Public Services," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(5), pages 675-691, November.
    7. James Devault, 1996. "Competitive Need Limits And The U.S. Generalized System Of Preference," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 58-66, October.
    8. Celia López Penabad, 2001. "The housing Finance System in the European Union. The Outlook for the Convergence," ERES eres2001_216, European Real Estate Society (ERES).

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