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Career guidance has never been seen as more important but what really makes a difference to the prospects of young people? This paper provides guidance to schools on how school leaders, teachers and guidance professionals can be most confident that they are providing useful support to students. It summarises available research on how schools can be most effective – and shares examples of how countries are helping to prepare young people to become career ready even at the most difficult times. In particular, it focuses on three important teenage attributes which act as indicators for whether they can be expected to do as well as possible in the jobs market. It matters:

  • What teenagers think about their futures in work
  • How they explore their potential futures at home or at school
  • Whether they experience workplaces through part-time working, internships or volunteering.

Young people who think about, explore and experience potential future lives in work are much better placed to make decisions that are right for them and compete for available jobs. The paper summarises the key evidence, sets out principles underpinning more effective career guidance and shows how well students are doing in different countries. Finally, encourages interested policy makers and practitioners to stay in touch with OECD work that will conclude late in 2021 with the development of data-driven tools for practice.

Assuming that immigrants select destinations according to absolute returns to their observable and unobservable human capital, I present a human capital model of migration accounting for taxes, transfers and limited portability of skills. The model predicts both segmented sorting of migrants to countries with a compressed income distribution, with negative sorting increasing with lower portability and positive sorting increasing with portability. Sorting to countries with greater income dispersion increases unambiguously with host-country relevant skills. Migrants to countries with compressed incomes will hence be more likely to be either out of work or overqualified and low-paid compared to natives with similar observable skills, and compared to migrants to countries with greater income dispersion. Regressions results on data for 16 OECD countries from the OECD Survey of Adult Skills are in line with the model. Controlling for observable skills and characteristics, including a literacy test score, immigrants from countries that are less wealthy or further away in geographical and cultural distance are significantly more likely to be either out of work or overqualified and low-paid in high-benefit countries. Wage compression, generous transfers and high taxes, typical traits of the so-called “Nordic” or “Flexicurity” model, may therefore contribute to making immigrant integration more challenging.

Most students have the beliefs and dispositions to help them cope and learn in challenging situations. The current pandemic has been ongoing since early 2020. This has affected ways in which teaching and learning are organised. Schools have had to provide education in different ways from the past. A special survey conducted as a collaborative effort between the OECD, UNESCO, UNICEF and the World Bank showed that upper-secondary schools were fully closed for over 65 days in 2020 on average across OECD countries with available data. The special survey also showed that where school closures were needed many countries made major efforts to mitigate their impact on students, focusing especially on vulnerable students by providing remedial measures to reduce students’ learning gaps. Despite these efforts, recently released studies have shown that learning loss during the pandemic was most pronounced among socio-economically disadvantaged students and schools.

TALIS aims to measure two points of interest: the degree to which innovation is implemented in learning environments, and the conditions for innovation in schools and classrooms. The former is examined through teachers’ self-reports of how often they use specific practices in their teaching to help students build cross-curricular skills and think critically. Conditions for innovation are examined through indicators on how open teachers and schools are to innovation, as well as the need and participation in professional development activities that enable teachers to use innovative practices in their work. Information on both of these areas will be valuable to feed into evidence-based policy making for building teacher capacity to meet the demands of 21st century learning.

French

When surveying teachers on the multiple domains of leadership for learning, teachers cluster into three different patterns of responses correlated with teaching experience, job satisfaction, and workload stress. Examining these clusters of teacher response patterns, and how they relate to the other teachers in the school and the principal, provides a unique way of viewing the school climate around instructional improvement, and allows possible different options for policy or professional development to be considered.

French
This paper examines how particular teaching and learning strategies are related to student performance on specific PISA test questions, particularly mathematics questions. The report compares teacher-directed instruction and memorisation learning strategies, at the traditional ends of the teaching and learning spectrums, and student-oriented instruction and elaboration learning strategies, at the opposite ends. Other teaching strategies, such as formative assessment and cognitive activation, and learning approaches, such as control strategies, are also analysed. Our analyses suggest that to perform at the top, students cannot rely on memory alone; they need to approach mathematics strategically and creatively to succeed in the most complex problems. There is also some evidence that most teaching strategies have a role to play in the classroom. To varying degrees, students need to learn from teachers, be informed about their progress and work independently and collaboratively; above all, they need to be constantly challenged.

Continuous professional development (CPD) is crucial for teacher’s professionalism, and affects teaching practices in the classroom. In addition, teachers’ self-efficacy and job satisfaction are higher when professional development has a positive impact on their work. Lifting barriers to participation in professional development by providing incentives and support structures, such as allocated time, as well as offering relevant professional development opportunities that meet teachers’ needs, are crucial for making CPD accessible and purposeful for teachers. Education systems could also build on effective forms of professional development, such as active learning and collaborative approaches, to improve the overall quality of professional development offered to the teaching workforce. These efforts can help teachers become lifelong learners and grow in their profession.

French

Within the equity in transport framework, this paper provides an overview on the rationale of using the needs-based approach for transport planning assessment. The paper is structured into three parts. First, the presentation of the needs-based approach using the inaccessibility index. Second, the interpretation of the index through the case of Barcelona. The focus will be on how the inaccessibility index allows us to capture relevant information on the satisfied mobility needs of different population groups (particularly for vulnerable groups of the population) through different transport modes. Finally, the potential incorporation into transport planning/assessment frameworks. This section discusses the ways in which the index could be implemented in two different contexts: ex-ante infrastructure evaluation and assessment of a deprived geographic area for transport strategic planning.

Congestion has become a burden for the Dutch economy. Commuters and businesses are suffering from the time lost in traffic and the unreliability of travel time. Expanding infrastructure can potentially solve such problems, albeit only in the long term and at a high cost. Thus short to medium-term solutions will have to be oriented at improvements in the use of existing infrastructure, more efficient public transport and better demand management. In this light the Dutch government proposed an innovative country-wide road pricing scheme. This scheme aims to make users pay for road usage and could bring about significant benefits in terms of lower congestion and less pollution. The full benefits of road pricing can be reaped by adjusting the prices to encourage more efficient economic and environmental outcomes. If the implementation of a fully-fledged road price system is delayed or aborted, the government should rely on alternative measures such as fuel taxation and congestion charges to obtain similar outcomes. Reforms to the transport system, including public transport, together with a more flexible housing market should reduce the economic and environmental burden of transport, thereby improving prospects for sustainable long-term growth. This Working Paper relates to the 2010 OECD Economic Survey of the Netherlands (www.oecd.org/eco/surveys/ netherlands).

The automotive sector is important across OECD countries in terms of value-added and R&D, but is also heavily affected by the green and the digital transformations. This paper offers a novel and holistic view of the automotive sector and its surrounding ecosystem based on a combination of Inter-Country Input-Output (ICIO) tables, patent data, mergers and acquisitions (M&A) transactions, cross-country micro-distributed data and firm-level balance sheet data. It identifies the boundaries of this industrial ecosystem including connected sectors (e.g. upstream and downstream) as well as knowledge and technology providers (e.g. universities or the digital industry). The paper documents emerging trends at the geographical and technological levels and provides a comprehensive assessment of the ecosystem’s changing microstructure, with a growing role of young and digital-intensive companies. Finally, it provides recommendations for effective public policies to support the automotive ecosystem, with a focus on innovation, competition and the growth of young firms.

Russia’s war of aggression against Ukraine is demonstrating the new role of commercial space systems in crisis management. The improved availability of commercial satellite data and signals is contributing to the quality and resilience of government systems, with telecommunications and follow-ups of military actions and impacts on the ground for civilians. But the war has also revealed vulnerabilities of space infrastructure and in global supply chains. It also unleashed a series of new threats, notably unanticipated third-party uses of satellite data and disruptions of civilian telecommunications. Furthermore, the current geopolitical situation raises questions about the future of international co-operation in space activities, at a time when it is urgently needed to collectively manage the use of orbital resources. This policy note includes OECD recommendations for policy responses to improve the resilience of space infrastructure, manage access to and use of data and signals and ensure long-term sustainability of space activities.

Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial fiscal consolidation needs. The choices made about which spending areas to curtail and which taxes to hike will have implications for near-term activity and long-term growth as well as for equity and the current account. This paper proposes a method for choosing the instruments of consolidation so that they contribute to -- or minimise trade-offs with -- the goals of promoting near-term activity, longterm growth, equity, and global rebalancing. The proposed method is illustrated with detailed simulations for 31 OECD countries which are accompanied by an extensive range of alternative scenarios to confirm the robustness of the findings. The simulations highlight that half of OECD countries can reduce excess debt mainly through moderate adjustments to instruments (such as subsidies, pensions or property taxes) that have at most limited side-effects on other policy objectives. They also show that a smaller number of countries face more difficult choices, having to either make bigger adjustments in areas where spending cuts or tax hikes are least harmful or to rely significantly on consolidation instruments with substantial adverse side-effects. These trade-offs can to a large extent be alleviated through structural reforms in the delivery of public services and in taxation.

Mobilising private sector funding is essential in bridging the infrastructure funding gap. This can be done by appropriate regulation, targeted public financial support, and active involvement by institutional investors. Creating an appropriate policy framework and lifting regulatory constraints on long-term investments will foster financial stability of retirement savings systems and enable the development of strategic infrastructure projects that contribute to long-term growth. As capital markets and bank funding have dried up as sources of infrastructure financing after the global financial crisis, finding alternative long-term debt sources is critical. Private infrastructure financing can be promoted by targeted public measures and by building an infrastructure management culture amongst asset managers. Infrastructure investments also require long-term policy planning, with long-term strategic policy frameworks that exceed political cycles and are built on wide political consensus. Stable and accessible programmes of infrastructure projects and public-private partnerships (PPPs) are key in attracting private sector investors, complemented by adequate regulation.

Israelis enjoy higher life expectancy and have a much younger demographic profile than most OECD countries. However, the demand for health care is expanding rapidly due to population growth and ageing. Also, the country’s wide socio-economic divides are reflected in differences in health outcomes. To date the health-care system, centred on four health funds, is widely acknowledged as providing a basket of universal services, with good quality primary and secondary care, while also accommodating demand for private health care. However, there are challenges and tensions in the system. Currently the authorities are having to rapidly expand the number of places in medical schools and nurse training because large cohorts of health-care professionals are heading for retirement. More broadly, there are concerns that the core notion of a universal basket of services is being eroded by co-payments and the increasing demand for the additional services and options provided by private insurance. Although the quality of care is generally good, in hospital care there is room to improve data and concern that overcrowding may become chronic. This Working Paper relates to the 2013 OECD Economic Review of Israel (www.oecd.org/eco/surveys/economicsurvey- israel.htm).
Ensuring tax and transfer systems bring sufficient revenue to reach macroeconomic fiscal targets, address societal goals in re-distribution and social welfare, recognise the influence taxation has on businesses’ competitiveness and adequately address environmental externalities is a tough challenge, arguably more so in Israel than in many other OECD countries. High interest payments and large defence spending make deficit and debt reduction more difficult, socio-economic divides remain wide and as a small-open economy Israel is highly exposed to mobile international capital and competition over international investment. And, as elsewhere, the incorporation of environmental issues into the tax system remains only partial. This review examines ways forward for policy on several fronts: indirect taxation; household income tax and social benefits; taxes on property and wealth; business taxation; and evasion, avoidance and administration issues. This Working Paper relates to the 2013 OECD Economic Review of Israel (www.oecd.org/eco/surveys/economic-survey-israel.htm).
Israeli house prices have risen by over 50% over the past three years. In part this reflects the fact that for several years housing construction had not kept pace with increases in the number of households. In response to these developments, hitherto sluggish planning-approval processes are being speeded up. However, in addition low interest rates have been boosting demand, and there are concerns that prices have already been driven to bubble levels. Efforts have been made to subdue demand, and the market has cooled off somewhat, but there remains a risk of a hard landing with a sharp downward price correction and a contraction in construction activity. Recent price developments are not the only economic issue in Israeli housing. As in a number of other OECD countries, housing policies favour home ownership through tax settings and subsidies for house purchase, potentially raising issues of labour mobility. More generally, housing support (public housing and rent support as well as subsidies for purchase) endeavours to fulfil an unusually wide policy agenda that goes beyond simply assisting low-income households with their housing needs. This Working Paper relates to the OECD 2011 Economic Survey of Israel (www.oecd.org/eco/surveys/Israel).
The total amount of debt relief accorded to African countries in the framework of the Multilateral Debt Relief Initiative is expected to reach $43 billion concerning 33 countries. The 15 African countries presently qualified for this Initiative will benefit from restored creditworthiness. Moreover, faced with considerable financing needs, African countries are prepared to take on new debts. Development partners can support this process of re-indebtedness provided that they employ extremely concessional, even counter-cyclical lending instruments, and also by strengthening co-ordination within the Debt Sustainability Framework.
French
From the mid-1980s, New Zealand was widely considered to be a leader in liberalising product market regulation (PMR). However, the reform of PMR has lost momentum over recent years. Many areas of PMR are still consistent with best practice, but New Zealand is no longer assessed to be at the forefront of regulatory policy making. Although economic geography clearly offers a partial explanation for the relative underperformance of the NZ economy, restrictive policies in some areas are also likely to be constraining growth in GDP per capita. Indeed, it is likely that being small and distant exacerbates the negative impact of restrictive product market policies on New Zealand’s economic performance. This implies a genuine need to shift the regulatory framework back towards the OECD frontier. Ongoing improvements in regulatory governance, minimising the government’s influence in competitive markets and lowering barriers to trade and FDI, including ongoing policy harmonisation and mutual recognition with trading partners where appropriate, would all help in this regard. This Working Paper relates to the 2011 Economic Survey of New Zealand (www.oecd.org/eco/surveys/NewZealand).
Sweden’s single biggest economic problem is the high number of people absent from work due to sickness or disability. This paper describes the problem and looks at what other countries have done to reduce absenteeism. It emphasises a mutual obligations approach to sickness insurance. This means placing greater responsibilities on the sick person, the employer and the social insurance office to get that person back to work as soon as possible.
Individual elements in Belgian tax system affect the growth process through different channels and to a varying degree. Consumption taxes are among the least distortive for growth, and there is considerable scope to increase the reliance on this tax source in Belgium. The Belgian differential taxation of saving vehicles distorts investment decisions, hampering the reallocation of capital towards its most productive use. However, the most distortive Belgian taxes are on labour through their effects on workers’ labour market decisions. Recognising the latter, the authorities have aimed at reducing taxation on labour. However, its level remains internationally high, reflecting numerous exemptions, which reduce tax bases and thus require higher tax rates than otherwise. To promote labour market prospects for individual groups on the labour market, wage subsidies and social security contribution reductions have been used extensively, leading to a complex system, often poorly targeted and at times subject to conflicting objectives. The end result is that the interaction between the personal income tax, the social security contributions, and the generous benefit systems has created a multitude of labour market traps which hold back employment. New tax reforms are constrained by the large and growing fiscal sustainability problem, implying that, unless substantial expenditure cuts are implemented, new tax reforms must be self-financed. This can be achieved by shifting the reliance of the tax system towards the least distortive sources and by broadening tax bases to allow lower tax rates. This Working Paper relates to the 2009 OECD Economic Survey of Belgium (www.oecd.org/eco/surveys/belgium).
French
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