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OECD Employment Outlook 2006

Boosting Jobs and Incomes

image of OECD Employment Outlook 2006

As ageing populations put more downward pressure on economic growth in the coming decades, it is essential that OECD countries improve labour market performance.  This edition of OECD's annual report on labour markets brings the reader not only detailed information on recent labour market developments, but also in-depth analysis of the effects of various policy measures and prospects through 2007.  The analysis includes coverage of the impact of welfare systems; labour market programmes; wage-setting and taxes; product market regulations; and policies targeting specific groups including women, youth, immigrants, and prime-age workers.  It examines policy interactions and complementarities and re-assesses OECD's 1994 Jobs Strategy in the light of recent developments.  This book includes StatLinks, URLs which link statistical tables and graphs to Excel spreadsheets on the internet.

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Reassessing the Role of Policies and Institutions for Labour Market Performance

A Quantitative Analysis

Did countries that undertook structural reforms fare better than the others in terms of employment and unemployment? How much of the evolution of employment and unemployment in the recent years can be explained by institutional and policy changes? Changes in policies and institutions appear to explain almost two-thirds of non-cyclical unemployment changes over the past two decades. Reforms in the tax-benefit systems and liberalisation of product market regulations unambiguously improve labour market performance. Reforms in these areas appear to be mutually reinforcing, so that the benefit from any particular policy reform tends to be greater the more employment-friendly the overall policy and institutional framework. Likewise, spending on active labour market programmes can reduce work disincentive effects brought about by generous unemployment benefits. Macro economic conditions also matter for unemployment performance, but their impact is shaped by labour market policies and institutions.

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