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Assessing the OECD Jobs Strategy: Past Developments and Reforms

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Nicola Brandt
Jean-Marc Burniaux
Romain Duval ()

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Abstract

In 1994, the OECD published a set of recommendations -- known as the OECD Jobs Strategy -- to deal with high and persistent unemployment that affected many member countries. These recommendations are currently being reassessed by the OECD and this paper contributes to this process. It provides a detailed description of labour market reforms in member countries over the past ten years, together with a short overview of changes in macroeconomic policies and reforms affecting product markets. It attempts to rank countries according with their past reform efforts, using an aggregate reform intensity indicator, and analyses the link, though in a very preliminary way, between reforms and labour market performance. Overall, there is little evidence of a link between initial conditions and subsequent reform efforts, with some countries taking only modest measures despite a poor starting point, while others carrying out ambitious programs even though their initial conditions were already relatively favourable. Over the past decade, member countries have employed very diverse reform strategies, from comprehensive reforms package (Denmark, Finland and the Netherlands) -- as recommended in the initial Jobs Strategy -- to reforms more narrowly targeted on specific fields where deep action was undertaken (France, Italy, the United Kingdom and Ireland). The intensity of reforms has differed markedly across policy fields, with more action being undertaken in areas that are more widely accepted by the population, such as active labour market policies and cuts of labour taxes. Please note that annexes are available on the Economics Department Website at: www.oecd.org/eco/Working_Papers.

Évaluation de la Stratégie de l’OCDE pour l’Emploi : Évolutions et réformes entreprises dans le passé
En 1994, l’OCDE a publié un ensemble de recommandations -- connu sous le nom de Stratégie de l’OCDE pour l’Emploi -- afin de remédier au chômage élevé et persistant qui affectait beaucoup de pays membres. Le Secrétariat réévalue actuellement ces recommandations, et ce document s’inscrit dans ce processus de réévaluation. Il fournit une description détaillée les réformes du marché du travail entreprises dans les pays membres au cours des dix dernières années ainsi qu’un résumé des modifications de politique macroéconomique et des réformes des marchés des produits. Il contient une tentative de classer les pays selon les efforts de réforme qu’ils ont déployés dans le passé, basée sur un indicateur agrégé d’intensité des réformes, et analyse d’une manière rudimentaire le lien entre les réformes et la performance du marché du travail. En général, il paraît difficile d’établir un lien entre les conditions initiales et l’effort de réforme déployé par la suite : certains pays n’ont entrepris que des réformes modestes malgré une mauvaise situation initiale alors que d’autres pays mettaient en œuvre des programmes de réformes ambitieux bien que leurs conditions initiales étaient déjà relativement favorables. Durant la dernière décennie, les pays membres ont utilisé des stratégies de réforme très différentes, certains (Danemark, Finlande et les Pays- Bas) mettant en œuvre des ensembles de réformes globaux (couvrant presque tous les aspects du marché du travail) -- comme il était recommandé dans la Stratégie pour l’Emploi -- alors que d’autres (France, Irlande, Italie et Royaume Uni) restreignaient leur action à des réformes ciblées sur certains aspects spécifiques du marché de l’emploi qui ont fait l’objet d’une action en profondeur. L’intensité des réformes a varié beaucoup d’un domaine à l’autre et des réformes plus importantes ont généralement été adoptées concernant des aspects bénéficiant d’un plus grand support de la population, comme les politiques actives de l’emploi et les réductions des taxes sur le travail. Veuillez noter que les annexes sont disponibles sur le site web du département des affaires économiques: www.oecd.org/eco/documentsdetravail.

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 429.

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Date of creation: 11 May 2005
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Handle: RePEc:oec:ecoaaa:429-en

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Keywords: wage level retirement policies time allocation and labour supply (part-time employment work sharing) allocation du temps salaires political economy économie politique capitalist systems compensation and labour costs government policy plant closings public policy severance pay structure and effect trade unions unemployment insurance wages wage level and structure welfare and poverty système capitaliste indemnisations et coûts du travail politique du gouvernement objectif fermeture d'entreprises politique publique politique des pensions indemnités de licenciement structure et effets syndicats assurance chômage niveau et structure des salaires aide sociale et pauvreté emploi à temps partiel partage du travail offre de travail

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Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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  3. Werner Eichhorst & Lutz C. Kaiser, 2006. "The German Labor Market: Still Adjusting Badly?," IZA Discussion Papers 2215, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Romain Duval & Jørgen Elmeskov, 2006. "The effects of EMU on structural reforms in labour and product markets," Working Paper Series 596, European Central Bank. [Downloadable!]
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  5. Juergen Janger & Johann Scharler & Alfred Stiglbauer, 2006. "The Potential Growth prospects of the Austrian Economy - Methods and Determinants," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 24-52, May 2006. [Downloadable!]
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  7. Samuel Bentolila & Juan J. Dolado & Juan F. Jimeno, 2007. "Does Immigration Affect the Phillips Curve? Some Evidence for Spain," IZA Discussion Papers 3249, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. H. Boulhol & S. Dobbelaere & S. Maioli, 2007. "Imports as product and labour market discipline," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/479, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
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  9. Kamila Fialová & Ondøej Schneider, 2008. "Labour Market Institutions and their Effect on Labour Market Performance in the New EU Member Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  10. Antonio Scialà & Riccardo Tilli, 2007. "Financing unemployment benefits by goods market competition: fiscal policy and deregulation with market imperfections," "Marco Fanno" Working Papers 0047, Dipartimento di Scienze Economiche "Marco Fanno". [Downloadable!]
  11. Van Poeck A. & Veiner M., 2007. "Wage flexibility in the new European Union members: how different from the old?," Working Papers 2007016, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
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