Browse by: "2017"

Luxembourg’s large foreign-born population is a pillar of the country’s prosperity: they have brought skills and knowledge to many sectors of the economy. They also tend to successfully find jobs, with a higher employment rate than natives. However, not all immigrants have done well. The minority from non-EU origin (about 10% of the country’s population) suffers from high unemployment, large gender gaps in activity and below-average incomes. Refugees are particularly vulnerable. Other integration shortcomings go beyond disadvantaged minorities. Pervasive labour market segmentation is well illustrated by the marked under-representation of the foreign-born in public sector jobs. Political participation of immigrants at local level is modest. At school, their children are often put at a disadvantage by an education system which tends to perpetuate socio-economic inequality.
The diversity of Luxembourg’s society contributed by immigrants should be seen as an asset for economic growth and well-being. Initiatives such as the diversity charter can help private and public organisations to reap the benefit of diversity through the inclusion of outsiders and the strengthening of social cohesion. Learning the languages of Luxembourg, developing social capital and having foreign qualifications validated are key preconditions for successful integration. Education requires both general equity-enhancing reforms, starting at early childhood, and targeted support to disadvantaged students, including upgraded vocational studies. Furthermore, job matching and social cohesion would benefit from greater immigrant participation in public sector employment and civic life. Avoiding that asylum seekers undergo protracted inactivity is also a concern.
This Working Paper relates to the 2017 OECD Economic Survey of Luxembourg (www.oecd.org/eco/surveys/economic-survey-luxembourg.htm).

Digitalisation, automation and future technological changes are changing the world of work, affecting the skills needed to perform them. The future of jobs will not look like the present situation: increasingly, workers will have to adapt to fast technological change, accept more mobility during their career, and regularly upgrade their skills to remain employable. Luxembourg’s workforce is highly skilled, reflecting the concentration in the country of sophisticated firms in the financial sector and other top-end international services. However, some middle- skilled routine jobs – especially back office, custodian and legal services in the financial sector – may disappear as a result of automation. Workers with strong and adaptable skills will be well prepared to thrive in this new environment. While many individuals working in Luxembourg already possess such characteristics, many others do not, resulting in a relatively high level of skills mismatch. Further improvements in the education system are needed to address this challenge, provide the young with learning-to-learn as well as technical capabilities and avoid that large groups of people are left behind. As skill sets will need to be updated during working careers, the system of initial education must be complemented by a flexible system of lifelong learning, tailored to the special needs of individuals with limited education attainment and older workers.
Better use of existing skills would entail reorienting labour market policies from supporting job creation towards high-quality training programmes with substantial on-the-job learning component and reflecting future labour market needs. The tax and benefit system needs to be adjusted to increase incentives to work for low-skilled youth, older workers and second earners. Fully individualised taxation would increase incentives to work of second earners and make the tax system more gender neutral, while an additional parental leave entitlement for fathers may result in more gender-balanced use of part-time work.
This Working Paper relates to the 2017 OECD Economic Survey of Luxembourg (www.oecd.org/eco/surveys/economic-survey-luxembourg.htm).

The health, social and economic consequences of poor mental health are substantial. More attention is focusing now on the development of actions to promote better mental health and wellbeing and prevent mental ill-health. This paper provides an overview of the development of approaches to promoting mental wellbeing and preventing mental ill-health in OECD countries, together with an assessment of what is known on their effectiveness and cost effectiveness. The paper finds that there is a sound and quite extensive evidence base for effective and cost effective actions which can promote mental wellbeing and prevent mental ill-health. However, the existence of actions and programmes in mental health promotion and prevention is uneven both between countries, and across different points of the life course. Many countries could stand to scale-up their promotion and prevention efforts in the mental health field, and further efforts are particularly needed to introduce interventions targeted at unemployed and older populations.

Never in the past 30 years has productivity growth been lower than since the 2008 global financial crisis, and never has income inequality been higher than it is today in Japan, and in the OECD area. The two challenges have some common origins, including a widening productivity and wage gap between leading firms and those that are lagging. This creates scope for positive synergy between policies to promote productivity and inclusive growth. Exit policy should be improved to facilitate the closure of non-viable firms, whose survival hampers the growth of viable firms in Japan. This would also increase firm entry, along with policies to promote entrepreneurship. The growing gap between small and medium-sized enterprises and large firms also needs to be addressed. Breaking down labour market dualism, which limits human capital accumulation by non-regular workers and contributes to earnings and income inequality, is also a priority. Finally, ensuring appropriate skills, including those needed for digitalisation, would help support higher productivity and inclusive growth.
This Working Paper relates to the 2017 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/economic-survey-japan.htm)

This paper estimates urban and rural poverty rates across five Chinese administrative regions (Shanghai, Liaoning, Guangdong, Henan and Gansu) in 2014 using representative household level data from the China Family Panel Studies survey. The types of government transfer payments that households in poverty received and the ability for such payments to lift households from poverty are also assessed. Consistent with official estimates, the results highlight substantial disparities in poverty rates between administrative regions. Smaller differences exist between urban and rural locations within the same administrative region. In 2014, the most common types of government transfer received by households in poverty were agricultural subsidies or social assistance - principally the dibao. Regarding the latter, the results suggest some improvement in payment targeting in rural areas, but most dibao recipients had income above the poverty line (as defined in this paper) in 2014. Furthermore, across all administrative regions, the vast majority of households living below the defined poverty line did not receive social assistance at that time.

With gross government debt of 219% of GDP in 2016, Japan’s fiscal situation is in uncharted territory and puts the economy at risk. In addition to raising productivity and growth, Japan needs a more detailed and credible fiscal consolidation path, including specific revenue increases and measures to control spending to restore fiscal sustainability. Spending pressures associated with rapid population ageing make reforms to contain social expenditures a priority. Local governments need to be part of the effort to contain public spending in the context of a shrinking population. Much of the consolidation, though, will have to be on the revenue side, primarily through hikes in the consumption tax rate toward the OECD average and a broadening of the personal income tax base. Fiscal consolidation should be accompanied by measures to promote inclusive growth through the tax and benefit system, in particular by introducing an earned income tax credit to assist the working poor, hiking the tax on capital income and broadening the base of the inheritance tax.
This Working Paper relates to the 2017 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/economic-survey-japan.htm)

Dans les pays et économies participant à l’enquête TALIS 2013, les enseignants débutants, dont l’expérience professionnelle n’excède pas trois ans, constituent en moyenne 10 % du total du personnel enseignant. Ces enseignants sont plus susceptibles de s’estimer préparés au contenu de la ou des matières enseignées qu’aux volets pédagogiques ou pratiques qui s’y rapportent. Toutefois, le degré de préparation qu’ils estiment posséder est inférieur dans les trois domaines à celui des enseignants expérimentés. Dans près de deux tiers des pays et économies participant à l’enquête TALIS 2013, les plus grands écarts quant au degré de préparation déclaré entre les enseignants débutants et expérimentés concernent la pratique pédagogique de la ou des matières enseignées, suivie de la pédagogie appliquée à la ou aux matières enseignées.

The Sahel and the Sahara are faced with exceptional political instability involving a combination of rebellions, jihadist insurgencies, coups d’état, protest movements and illegal trafficking. The backdrop to this accumulated violence is a globalised security environment, which blurs the traditional lines between what is local and global, military and civilian, domestic and international, politics and identity. The purpose of this paper is to analyse these patterns of violence. The first section presents the geographic distribution and development over time of the main sources of violence in North and West Africa before examining the events behind the increase in political violence in the Sahel and the Sahara. The second section analyses the patterns of violence, and focuses on the geographic scales thereof and the strategies of the warring parties. In its conclusion, the paper highlights the need to strengthen regional co-operation, restore the legitimacy of governments, and establish inclusive governance solutions in conflict zones.

Financial inclusion and women entrepreneurship concern policymakers because of their impact on job creation, economic growth and women empowerment. Women in Mexico do engage in paid work but many of them work in the informal sector because they lack opportunities to work in the formal sector. Moreover, financial exclusion rate in Mexico remains the highest amongst OECD countries, affecting women in particular. This paper uses an individual-based panel dataset over the period 2009-2015 to examine the determinants of women entrepreneurship in Mexico and to determine the relationship between women entrepreneurship and financial inclusion across informal and formal work and across economic sectors. The results suggest that financial inclusion is positively linked with entrepreneurship and it can open up economic opportunities for women entrepreneurs. Various financial access points like banking branches, POS terminals, banking agents, ATMs and microfinance banks can be a gateway to the use of additional financial services which can allow businesses development through access to credit facilities. However, the positive relationship between women entrepreneurship and financial inclusion does not hold for women entrepreneurs working in the informal sector or women working in the commerce sector, highlighting lower entry barriers, including financial, in the informal sector and problems pertaining to financial illiteracy. Results also highlight that the probability of a women being an entrepreneur in the informal sector is higher than in the formal sector. Education, age, income, marital status (married or divorced), and income level at the municipality level are amongst other significant determinants which are positively linked with women entrepreneurship. The results also highlight the existence of gender disparity in the status of entrepreneurship across formal and informal work in Mexico. On average, women are about 56% less likely to be entrepreneurs in the formal sector and 63% more likely to be entrepreneurs in the informal sector, as compared to men, after taking into account other relevant individual and municipality level characteristics that are important in explaining entrepreneurship.

This paper examines the linkages between Boko Haram activities in northeastern Nigeria and declined activities in regional agricultural markets. Building on data from both the Armed Conflict Location and Event Data Project (ACLED) and the Famine Early Warning Systems Network (FEWS NET), the paper first considers the geographic distribution of Boko Haram events with respect to market towns and discusses whether there is evidence of Boko Haram activities near markets having influence on declined market operations. Next, it examines the temporal character of market operations and the timing of their changes in their operational status, including market closures, with respect to the seasonality of agricultural production and land use in northeastern Nigeria. The paper measures the frequency of changes in regional market activities and considers spatial relationships and temporal correlations with Boko Haram activities in the region over twelve periods from late 2014 through the end of 2016. Finally, the paper formulates policy recommendations for assessing and mitigating coupled challenges of human and environmental security.

While India’s per capita income is converging towards that of the richer countries, inequality has drifted up. Spatial inequality – across states and between urban and rural areas – is pronounced, with large differences in output per capita and in access to core public services, such as electricity, roads, and education. Implementing the GST will contribute to reduce trade barriers across states while recent changes in the federalism model are empowering states and promoting experimentation. Prompting states to modernise product and labour market regulations should allow firms in the organised sector to reach an efficient size, and promote job creation and rising incomes in all states. Raising the living standards in poorer states would also require increasing productivity in the agricultural sector by supporting farm consolidation and improving infrastructure in rural areas, particularly roads that connect villages to market towns, crop storage infrastructure and access to sustainable irrigation technologies. As working population moves out of agriculture, urbanisation will gather pace. However, exploiting cities’ potential for job creation, productivity gains and improvement in the quality of life would require better physical and social urban infrastructure. Local spending and regulatory competences should be clarified. Performance of local bodies should be assessed regularly to make them accountable. Municipalities should also be granted clear revenue-raising power (in particular property taxes and user charges for urban infrastructure) to enable them to fund better public infrastructure and services.

Several countries have been setting up strategic roadmaps to support marine biotechnologies that could drive innovation and help address the global sustainability goals of food, energy, and health. The report identifies and begins to address challenges facing cooperation on marine biotechnology across countries. First, the report provides on an international definition of marine biotechnology that was developed through a multi-year process. Second, the report reviews the international infrastructure in marine biotechnology and identifies the lack of standardisation as a critical issue.

As educators know well, there are many barriers to learning that originate outside of school, such as those that arise from socio-economic disadvantage. In many education systems, the concentration of disadvantaged students in certain schools poses an additional challenge. Yet it is also true that schools with effective learning environments and high-quality resources can compensate, at least partially, for larger social inequalities. If school systems are to level the playing field, so that all children, regardless of their family background, are offered the best possible education, then the types of practices and resources that are related to better student performance need to be used in every school, not just in advantaged schools.

There is now strong evidence that microbiomes play an important role in human health, as there are clear linkages to many of the major non-communicable diseases. This report assesses the key policy challenges for innovation in the microbiome. Evidence is accumulating that through diet, the gut microbiome can be altered to generate greater well-being, to offer better protection against non-communicable diseases, and even to cure such conditions. The report argues that if such a promising scientific field is to lead to innovative applications, policies on science and innovation must be improved in five areas: 1) science policy; 2) enabling translational science; 3) public-private collaboration; 4) regulatory frameworks; and 5) skills, communication and the public.

West African households were particularly affected by the food price crisis of 2007-08. As these households depend on markets for two-thirds of their food supplies, prices have become a key determinant of access to food. However, food prices are 30-40% higher in sub-Saharan Africa than in the rest of the world at comparable levels of per capita income. These price levels have a negative impact on the purchasing power of households and are a major factor of food and nutrition insecurity. Price monitoring systems need to be updated and strengthened. Increasing productivity, promoting regional trade and supporting food value chain development are three of the policy options available to decision-makers to drive down food prices sustainably.