The Mediterranean Economy: Family Business Model And Family Welfare Model

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MEDITERRANEAN ECONOMY AN INTRODUCTION Historically, the Mediterranean economy has been an economy largely dependent on agriculture, little mineral deposit, tourism and traditional practices. Mediterranean economies consist of heterogeneous set of countries that rank among average income to low income economies. In this region, population growth rate is high, population under 25 years old represents a large share of the total (up to 40%) and the new labour force entering the market every year is huge (UNDP’s Arab Human Development Report 2002). This type of economy does not conform to complementary efforts unlike LMEs and CMEs which benefit from a complementary Institutional arrangement. The 2008 global financial crisis and the subsequent Eurozone …show more content…

The role of the family behavior can be split into: Family business model and family welfare model. France which subscribe to the family business model which create for independent careers of family members, encouragement of female employment with good education and skills couple with minimal assistance of family members in their family business. This helped distinguished France economically above other Mediterranean countries economy as “it bridges incoherent institutional sub-spheres by market oriented familialism which allows families to survive mainly on market incomes from volatile employment, for instance in small firms” (Glassmann, 2016). He further stated that “family welfare model is known for its low education standards and skills couple with low female employment. Rigid social and employment protection for the male breadwinner is supposed to guarantee a stable family income. Instead of seeking independent careers in the formal labour market, women contribute to family welfare by working in the shadow economy or assisting informally in family micro-businesses. For the same reason, children tend to leave school early, as they are prompted to support their parents. Thus, labour is highly subsidized by informal help because entrepreneurs primarily seek to secure the survival of their family instead of developing innovative products”. Thus, referring to the Scandinavian so-called PIGS (Portugal, Italy, Greece and Spain) which subscribes to family welfare

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