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OECD Employment Outlook 2004

image of OECD Employment Outlook 2004

The OECD Employment Outlook is OECD's annual assessment of labour market developments and prospects in its member countries. After presenting an overview of developments and prospects, this 2004 edition examines aspects of working time including scheduling and family arrangements; employment protection regulations' effects on labour market performance, wage-setting institutions and outcomes, the effects of training on aggregate employment and job prospects, and transitioning from informal employment to a salaried economy.  An extensive statistical annex is included.

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Informal Employment and Promoting the Transition to a Salaried Economy

“Informal” employment escapes taxation and regulation. Such forms of employment make it difficult to manage social protection; undermine tax collection, implying either high tax rates on those in formal employment or poor-quality government services; involve unfair competition and inefficient production methods; and facilitate illegal migration. To what extent does undeclared work include household production, work helping out friends, work by illegal migrants, undeclared wages, “black market” transactions, tax evasion by the self-employed, and the production of illicit goods? Do high taxes, red tape, poor-quality government services and strict employment regulations exclude workers from formal employment, and how can the transition to a salaried economy be promoted?

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