What do we mean by social dumping and what are its possible effects on the EU labour market? Looking at the table above, could you conclude that social protection of EU workers decreased due to the integration of 12 new member States? Explain your answer Despite the possible consequences of social dumping on the integration process, the EU did not centralise the decisions regarding social protection in the labour market. What would be the reasoning behind such a decision?
Ahead of the enlargement of the EU in early 2000s with 12 new members, there was a huge debate regarding the social protection of workers.
- What do we mean by social dumping and what are its possible effects on the EU labour market?
- Looking at the table above, could you conclude that social protection of EU workers decreased due to the integration of 12 new member States? Explain your answer
- Despite the possible consequences of social dumping on the integration process, the EU did not centralise the decisions regarding social protection in the labour market. What would be the reasoning behind such a decision?
Social Dumping is a set of practices on a national, international or inter corporate level, that aims to gain an advantage over competitors that could have important negative consequences on economic processes and workers' social security.
Social dumping is a side effect of open borders and free movement of workers. Eastern European countries like Poland, Bulgaria etc. have a very lower minimum wage than all the Western countries. As a result, the Eastern countries are much more attractive in case of foreign direct investment and for hiring of cheap labor.
Therefore, the social dumping is basically creating a gap between the East and West countries in Europe.
Step by step
Solved in 3 steps
