OECD Reviews of Labour Market and Social Policies: Lithuania

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Lithuania has undergone major economic and social change since the early 1990s. Despite an exceptionally deep recession following the global financial crisis, impressive economic growth over the past two decades has narrowed income and productivity gaps relative to comparable countries in the OECD. But Lithuania faces a massive demographic challenge, mostly as a result of large and persistent emigration driven primarily by low wages and poor working conditions. Income inequality is also very high, and households at the bottom of the income distribution have recently benefited very little from the recovery. Major reforms of the labour code, the unemployment insurance system, employment policies and pensions were recently undertaken within the New Social Model to improve labour maket adaptibility and income security. This report provides comprehensive analysis of Lithuania’s policies and practices compared with best practice in the field of labour, social and migration from the OECD countries. It contains several recommendations to tackle key challenges facing Lithuania. This report will be of interest in Lithuania as well as other countries looking to promote a more inclusive economy.




This volume consists of a background report prepared by the OECD Secretariat to support the Labour Market and Social Policy Review of Lithuania undertaken by the OECD Employment, Labour and Social Affairs Committee as part of the process for Lithuania’s accession to the OECD [see the Roadmap for the Accession of Lithuania to the OECD Convention : C(2015)92/FINAL]. In accordance with paragraph 14 of Lithuania’s Accession Roadmap, the Employment, Labour and Social Affairs Committee agreed to declassify the report in its current version and publish it under the authority of the Secretary General, in order to allow a wider audience to become acquainted with the issues raised in the report. Publication of this document, and the analysis and recommendations contained therein, do not prejudge in any way the results of the review of Lithuania by the Employment, Labour and Social Affairs Committee as part of its process of accession to the OECD.


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