OECD Economic Policy Papers

ISSN :
2226-583X (online)
DOI :
10.1787/2226583x
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The OECD Economic Policy Papers series is designed to make available selected studies on structural and macro-economic policy issues of current interest. The Papers are produced in the context of the work carried out on the two regular OECD titles, OECD Economic Outlook and Going for Growth.
 

Policy Challenges for the Next 50 Years You or your institution have access to this content

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Author(s):
Henrik Braconier1, Giuseppe Nicoletti1, Ben Westmore1
Author Affiliations
  • 1: OECD, France

Publication Date
02 July 2014
Bibliographic information
No.:
9
Pages
68
DOI
10.1787/5jz18gs5fckf-en

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This paper identifies and analyses some key challenges that OECD and partner economies may face over the coming 50 years if underlying global trends relating to growth, trade, inequality and environmental pressures prevail. For example, global growth is likely to slow and become increasingly dependent on knowledge and technology, while the economic costs of environmental damages will mount. The rising economic importance of knowledge will tend to raise returns to skills, likely leading to further increases in earning inequalities within countries. While increases in pre-tax earnings do not automatically transform into rising income inequality, the ability of governments to cushion this impact may be limited, as rising trade integration and consequent rising mobility of tax bases combined with substantial fiscal pressures may hamper such efforts. The paper discusses to what extent national structural policies can address these and other interlinked challenges, but also points to the growing need for international coordination and cooperation to deal with these issues over the coming 50 years.
Keywords:
environmental damages, immigration, fiscal consolidation, income distribution, technological change, global economy, structural reforms, coordination, projections, inequality, tertiary education, interdependence, climate change, growth
JEL Classification:
  • F: International Economics
  • H: Public Economics
  • I2: Health, Education, and Welfare / Education and Research Institutions
  • I3: Health, Education, and Welfare / Welfare and Poverty
  • J1: Labor and Demographic Economics / Demographic Economics
  • O3: Economic Development, Technological Change, and Growth / Technological Change; Research and Development; Intellectual Property Rights
  • O4: Economic Development, Technological Change, and Growth / Economic Growth and Aggregate Productivity
  • Q5: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics