OECD Reviews of Labour Market and Social Policies: Latvia 2016
Latvia 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 comparator countries in the OECD. But Latvians report low degrees of life
satisfaction, very large numbers of Latvians have left the country, and growth has
not been inclusive. A volatile economy and very large income disparities create pressing
needs for more effective social and labour-market policies. The government’s reform
programme rightly acknowledges inequality as a key challenge. However, without sustained
policy efforts and adequate resources, there is a risk that productivity and income
growth could remain below potential and social cohesion could be further weakened
by high or rising inequality.
Published on March 31, 2016
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