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Boosting productivity and inclusiveness in Lithuania


  • Vassiliki Koutsogeorgopoulou
  • Demetrio Guzzardi


Productivity growth in Lithuania has slowed in the aftermath of the global financial crisis,holding back income convergence and making it harder to reduce further the relatively highinequality and poverty. A comprehensive approach is required to address productivity andinclusiveness challenges, building on their synergies. The government has taken measuresto this end, with the New Social Model at the core, but efforts need to continue. Reformsshould focus on additional improvements in the business environment by easing furtherregulations on the employment of non-EU workers and reducing informality. Initiatives toimprove the governance of state-owned enterprises are welcome and need to continue.Improving access to finance and ensuring effective bankruptcy procedures are key toboosting firm dynamism, as are measures to encourage business-research sectorcollaboration on innovation. Addressing large skills mismatch is also a priority. Increasingthe market-relevance of the education system is important. More and better-quality jobs inthe formal sector, especially for the low-skilled, are key to inclusiveness and well-being,while more effective support and active labour market programmes would help combatingpoverty.This Working Paper relates to the 2018 OECD Economic Survey of Lithuania(

Suggested Citation

  • Vassiliki Koutsogeorgopoulou & Demetrio Guzzardi, 2018. "Boosting productivity and inclusiveness in Lithuania," OECD Economics Department Working Papers 1529, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1529-en
    DOI: 10.1787/1099017a-en

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    Cited by:

    1. Toma LANKAUSKIENE, 2019. "Productivity determinants and their contributions to productivity growth in the Baltic countries before and after their entry into the European Union: a comparative industrial perspective," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 10, pages 63-88, December.

    More about this item


    benefits; education; employment protection legistation; financing productivity; inclusiveness; inequality; innovation; Lithuania; poverty; skills mismatch;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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