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OECD Employment Outlook 2010

Moving beyond the Jobs Crisis

image of OECD Employment Outlook 2010

The OECD Employment Outlook 2010 is OECD’s annual report on employment and labour markets in the OECD area and beyond.  Opening with an editorial which analyses the immediate policy challenges and provides advice for OECD governments, and a first chapter that sets out the facts and figures related to recent employment developments and sets them in the broader economic context,  this volume goes on to provide analysis in three specific policy areas: the jobs impact and policy response in emerging economies, institutional and policy determinants of labour market flows, and the quality of part-time work. The volume closes with a statistical annex which provides the latest available employment data.  This book includes StatLinks, URLs under each graph and table linking to spreadsheets showing the underlying data.

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Institutional and Policy Determinants of Labour Market Flows

Many new firms are created every year. At the same time, many existing firms expand, while others contract or even shut down. In the process, many jobs are created and workers are hired; even as many positions are suppressed and workers separate from their employers. Labour reallocation is an important driver of productivity growth, insofar as less productive firms tend to destroy more jobs and more productive ones to create more jobs. What determines cross-country differences in hiring and separation rates? Can policies enhance growth by removing barriers to labour reallocation across industries, firms and jobs? Drawing from internationally harmonised data, the chapter analyses the impact of policies and institutions on gross worker flows in order to better inform policy makers on the channels through which policies affect productivity. However, enhancing labour reallocation can have distributional effects insofar as those workers that lose their job usually suffer from substantial declines in earnings and working conditions, in particular during periods of contracting economic activity. What are the effects of different policies on the likelihood and costs of losing a job? The chapter also examines the impact of policies on the incidence of, and wage premia and losses associated with, different types of labour market transitions.

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