Structural reforms and income distribution

The world is still repairing the damage done to employment prospects and social equality by the crisis. Governments are trying to create not just more jobs, but better jobs. A new OECD framework helps them to define what job quality means and to measure whether their policies are succeeding.

Income inequality has reached record highs in most OECD countries and remains at even higher levels in many emerging economies. The richest 10 per cent of the population in the OECD now earn 9.6 times the income of the poorest 10 per cent, up from 7:1 in the 1980s and 9:1 in the 2000s, according to a new OECD report.

Of the abundant resources given to mankind, what is the most underused resource of our time? Without a doubt, women!

The OECD’s Annual Meeting at Ministerial Level reinforced member governments’ support across a broad range of key OECD work.

Ireland was hit hard by the financial crisis and the labour market has yet to fully mend. The unemployment rate more than tripled from 4.6% in Q1 2007 to its peak of 15.1% in Q4 2011.

Canada should improve the support its employment services offer to help laid-off workers find a new job more quickly, according to a new OECD report.

Labour market conditions are generally improving in OECD countries. However, employment is still growing too slowly in the OECD area to close the jobs gap induced by the crisis by the end of 2016.

This blog post looks at the importance of assessing and anticipating skill needs as recent empirical literature warns about the negative impact that skills mismatch can have on individuals and economies as a whole.

Apprenticeships provide opportunities to build up new skills and knowledge both on and off the job. When they are of high quality, apprenticeships promote a smoother transition from school to work for young people, giving them a good start to their working careers.

Austria needs to do more to help people with mental health problems find a job or stay in the workplace, according to a new OECD report. A more comprehensive approach would help employees and firms alike: mental health issues are estimated to cost the Austrian economy around 3.6% of GDP every year in lost productivity, health care and out-of-work benefits.

7th annual expert meeting of the initiative on Employment and Skills Strategies in Southeast Asia (ESSSA) and GIZ/ RECOTVET Policy Dialogue - 7-8 October, 2015 - Sokha Angkor Resort, Siem Reap, Cambodia

Encouraging more people to continue to work later in life would help Denmark meet the challenges of its rapidly ageing population. The ratio of the population aged 65 and over to the working-age population is projected to increase from 30% in 2012 to 43% in 2050, according to a new OECD report.

The seminar was organised by IPRASE, provincial institute for research and educational experimentation, instrumental body of the Autonomous Province of Trento, the Autonomous Province of Trento and the OECD LEED Trento Centre. The seminar represented a first public reflection on the Trentino Multilingualism Plan within a national and international comparison framework, in view of future prospects.

Older workers earn more than younger workers with the same skills. So what explains the lower return to skill among younger, less-experienced workers? Employers may need time to learn about (and reward) the true skills of young workers. “Experience and the returns to education and skill in OECD countries, Evidence of employer learning?” published in the OECD Journal: Economic Studies.

High-skilled jobs as an important driver of overall employment growth in the EU and the impact of high-skill job creation goes beyond the highly educated workforce. If European regions are very unequal in terms of high-skill intensity, they are converging slowly.

The OECD and the Italian government are stepping up cooperation to ensure effective implementation of local development strategies to boost jobs, encourage entrepreneurship and increase social inclusion. An agreement, to be signed in Rome on 1 December 2015, will renew the mandate of the OECD Trento Centre for Local Development and establish a satellite office in Venice.

The webinars enabled serious discussion on the concept of ‘local economic resilience’ in an informal setting that facilitates interaction and questions. The format featured presentations from policy experts and a roundtable discussion with the audience.

Recent reforms have made pension systems more financially sustainable and pensioners have higher living standards than ever before. But future generations are likely to find their pension entitlements much less generous than today’s and many may face a serious risk of pensioner poverty, according to a new OECD report.

Being able to directly measure all the above aspects would be extremely useful but economists and analysts usually face severe data limitations (e.g. small sample size, data comparability, measurement error etc.) and are, in many instances, forced to use second-best proxies to describe skills and build indicators.

The recent mental health reform is an important step towards better services for people with mental ill-health, but Australia needs to do more to help people with mild to moderate mental health issues at and into work, according to a new OECD report.

OECD Employment and Labour Ministers meeting in Paris have underlined their commitment to boosting employment, particularly for young people and the long-term unemployed, tackling labour market inequalities and helping people with mental health issues find and stay in work.

The digital revolution, globalisation and rapid population ageing are changing profoundly the types of jobs needed and the way we work, and may lead to even more dramatic changes over the coming decades. Will the many unemployed ever find a job again with the skills they have today in new world of work? Where are new jobs being created and what do they look like?

Back to the future of work, policy discussion at the Forum on the Future of Work and Labour Ministerial, 14 and 15 January 2016.

The webinars will enable serious discussion on the concept of ‘local economic resilience’ in an informal setting that facilitates interaction and questions. The format will feature presentations from policy experts and a roundtable discussion with the audience.

Investing in Youth in Tunisia most important than ever, and the still relevance of the last Investing in Youth review 2014.

Average wages can vary markedly between socio-economic groups (gender, native- and foreign-born; high-skilled and low-skilled parents; workers of different ethnicities; age). These differences between groups of workers contribute to high overall wage inequality.

All OECD countries, except the United States, provide nationwide paid maternity leave. Over half also offer paternity leave to fathers right after childbirth. By enabling fathers to take on a greater share of the childcare burden, parental leave can support women’s careers.

Discussion on how technology helps measuring skills shortages in real time

Openness to change and a continuous questioning of the way we work are the keys to being prepared for the Future of Work. This advice comes from Mark Keese, Head of the Employment Analysis and Policy Division at the OECD, and we catch up with Mark following the OECD's Future of Work Forum in January 2016.

The OECD LEED Programme launches this "Call for Initiatives" to extract what local authorities and other actors know works, what the new scenario is demanding and how equipped they are to respond. We are interested in learning from the experiences of EU member countries, the wider OECD area as well as other countries.

Sweden should address housing shortages, begin integration activities early, and improve the support for those with low skills to speed up the effective integration of refugees, according to a new OECD report.

11th edition of Trento Festival of Economics: the arena where economists, political and institutional stakeholders, researchers and journalists from all over the world, will exchange views and investigate the topic “Where growth takes place”.

OECD analyses have begun to understand the relationship between digitalisation, jobs and skills, the magnitude of potential job substitution due to technological change, the relationship between globalisation and wage polarisation, as well as the changes to the organisation of work.

This study will analyse how selected local areas/industry clusters identify the specific skills needed to support green growth and how related skills policies and practices can be made more effective in supporting their provision and accelerating transition to a low-carbon economy.

Ongoing innovation in technology is changing labour markets worldwide. To understand the future of work in the digital era, we need to move away from the traditional economic classification of manufacturing and non-manufacturing sectors.

Workers can be mismatched by qualifications while their skills are, in fact, adequate for their jobs. This situation, ‘apparent’ qualification mismatch is more common in certain fields of study than in others and speaks to the need of strengthening the links between employers, education providers and students to share information on the true skills, to avoid true skills mismatch.

When nearly a million Vietnamese “boat people” fled their country in the late 1970s and early 1980s and sought refuge elsewhere, they were typically seen as a burden and often turned away. Eventually, many were allowed to settle in the US. Most arrived speaking little or no English and with few assets or relevant job skills. Yet Vietnamese refugees are now more likely to be employed and have higher incomes than people born in the US.

A more skilled population ahead: age or cohort effects? Evidence from PIAAC and the differences in policies approach.

A three-year programme of co-operation between the European Commission and LEED on self-employment and entrepreneurship in Europe.

The demand for soft skills is increasing, and recent evidence suggests that the supply does not seem to keep up. The benefits from further development of these skills go beyond better labour market outcomes, as soft skills have been shown to contribute to overall well-being.

New research points to the role of field-of-study mismatch in explaining the long-term effects of cyclical labour market shocks. It suggests that policy effort ought to be directed not just towards the NEETs, but also towards youth who find employment during recessions, given their higher risk of prolonged field-of-study mismatch and lower wages if mismatch is accompanied by overqualification.

Today, the OECD publishes "Skills Matter: Further Results from the Survey of Adult Skills", the Second International Report for the Survey of Adults Skills, which covers a further nine countries and sub-national entities – Chile, Greece, Indonesia (Jakarta), Israel, Lithuania, New Zealand, Singapore, Slovenia and Turkey– that collected data in 2014-15.

Although Lithuania’s growth has been impressive, inequality is high, the risk of poverty is one of the highest of European countries, and life expectancy is comparatively low and strongly dependent on socio-economic background.

In 2015 the Lithuanian government launched an ambitious Social Model reform agenda aimed at balancing flexibility of the labour market and security provided through the system of social protection.

Labour markets are continuing to recover from the crisis and employment is set to return to pre-crisis levels in 2017, but wage growth remains weak, according to a new OECD report.

The recently published Second International Report for the Survey of Adults Skills looks in detail at the extent to which proficiency in literacy, numeracy and problem solving in technology-rich environments matters for the well-being of individuals and nations. The answer that emerges is clear: proficiency is positively linked to a number of important economic and social outcomes.

Skill requirements are changing rapidly as a result of structural shifts. Workforce employability is essential to turn structural change into an opportunity for all. Education and training systems, labour markets, workers and workplaces will have to become more adaptable. A set of concrete actionable measures is proposed to improve the employability of each economy’s workforce.

The Netherlands should improve its policies to attract and retain highly skilled migrants in order to address labour shortages and strengthen its position as a knowledge-based economy, according to a new OECD report.

The post-crisis recovery in entrepreneurial activity remains mixed across countries, but new data released today by the OECD provides tentative signs of a turning point, with trends in enterprise creation rates pointing upwards in most economies.