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Labour markets, human capital and inequality

Focus

  • Well targeted social programmes will enhance social inclusion and intergenerational equity.

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  • Unlike in many other countries poverty and income inequality have fallen, and large family benefits introduced in 2016 have helped to bring down child poverty further.

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  • Structural reform efforts should be revived, seizing the opportunity of the stronger economy to help secure a more robust recovery of productivity, investment and living standards.

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Enhancing Economic Flexibility: What Is in It for Workers?

Reforms that boost growth by enhancing economic flexibility often meet strong opposition related to concerns that they may imply adverse consequences for categories of workers. This study investigates how making product or labour market regulation more flexible changes workers’ risks of moving out of employment and jobless people’s chances of becoming employed.

 

BlogPost: What do pro-competitive policies IMPLY for workers?

Less income inequality and more growth - Are they compatible?

Can both less income inequality and more growth be achieved? A recent OECD study sheds new light on the link between policies that boost growth and the distribution of income. It suggests that there are win-win policy options: raising human capital is key, various labour market reforms can help and taxation can be made more equitable and growth friendly. But there are also reforms that lead to a trade-off between growth and equity.