OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

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Growing together: making Lithuania's convergence process more inclusive

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. The low job satisfaction reduces well-being and feeds high emigration. Labour market, social and health policies can all contribute to improve both well-being and growth. Priorities include providing more and better jobs for all, especially for the low-skilled, by making work pay while keeping the labour costs under control. More accessible and adequate income support combined with more ambitious job-search support and training programmes would better-integrate out-of-work individuals into the labour market. Strengthening equity, effectiveness and sustainability of health policies is also instrumental to inclusiveness. This Working Paper relates to the 2016 OECD Economic Survey of Lithuania (www.oecd.org/eco/surveys/economic-survey-lithuania.htm)


Keywords: public employment services, tax wedge, in-work benefits, health care system, employment protection legislation, unemployment benefits, active labour market policies, life expectancy
JEL: J28: Labor and Demographic Economics / Demand and Supply of Labor / Safety; Job Satisfaction; Related Public Policy; H2: Public Economics / Taxation, Subsidies, and Revenue; J08: Labor and Demographic Economics / General / Labor Economics Policies; I3: Health, Education, and Welfare / Welfare, Well-Being, and Poverty; I1: Health, Education, and Welfare / Health; J31: Labor and Demographic Economics / Wages, Compensation, and Labor Costs / Wage Level and Structure; Wage Differentials; J6: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers
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