Economic Policy Reforms 2009 Going for Growth.

Editorial
Table of Contents
Executive Summary
Part I. Taking Stock of Structural Policies in OECD Countries
	Chapter 1. Structural Reform at a Time of Financial Crisis
		Figure 1.1. Industrial production
		Do crises facilitate structural reforms?
		The selection of appropriate structural policies
			Box 1.1. Structural policy and resilience to shocks
			Demand effects of structural policies
			Structural effects of demand policies
		Notes
		Bibliography
	Chapter 2. Structural Policy Priorities 2009: An Overview
		Introduction
			Box 2.1. How does Going for Growth differ from country priority setting by other institutions?
		Growth performance in OECD countries: Key stylised facts
			Figure 2.1. GDP per capita levels and growth rates
			Box 2.2. The shift in EU-US productivity growth performance: a significant break­point?
				Figure. Estimates of underlying growth rates in US and EU labour productivity
			Figure 2.2. The sources of real income differences, 2007
		Areas of policy priorities
			Box 2.3. Reforms resulting in 2007 policy priorities being dropped in Going for Growth 2009
			Policies to improve labour productivity performance
				Figure 2.3. Producer support estimates for agriculture, 2007
			Policies to improve labour market performance
		The evolution of policy priorities since 2005
			Table 2.1. Distribution of policy priorities by Going for Growth edition
		Notes
		Bibliography
		Annex 2.A1. How Policy Priorities Are Chosen in Going For Growth
			Figure 2.A1.1. Example of the selection of candidates for Going for Growth priorities
		Annex 2.A2. Structural Policy Priorities by Country and Performance Area
		Annex 2.A3. Choice of the Numéraire in Going For Growth
			Figure 2.A3.1. Labour productivity and utilisation levels in 2007
			Table 2.A3.1. Efficiency scores relative to the United States and the efficiency frontier
			Figure 2.A3.2. GDP per capita levels vis-à-vis the efficiency frontier and growth rates
		Notes
	Chapter 3. Country Notes
		Australia
			Priorities supported by indicators
				Reform disability benefit schemes
				Strengthen competition in network industries
				Improve the performance of early education
			Other key priorities
			Structural indicators
		Austria
			Priorities supported by indicators
				Reduce barriers to entry in network industries
				Reduce the implicit tax on continued work at older ages
				Improve graduation rates from tertiary education
			Other key priorities
			Structural indicators
		Belgium
			Priorities supported by indicators
				Further reduce the implicit tax on continued work at older ages
				Further reduce the tax wedge on low-income workers
				Ease regulation in the retail sector
			Other key priorities
			Structural indicators
		Canada
			Priorities supported by indicators
				Reduce barriers to competition in network industries
				Further reduce barriers to foreign ownership
				Further reduce barriers to competition in professional services
			Other key priorities
			Structural indicators
		Czech Republic
			Priorities supported by indicators
				Increase graduation rates from tertiary education
				Reduce barriers to business entry
				Reduce the costs of EPL for regular workers
			Other key priorities
			Structural indicators
		Denmark
			Reduce marginal taxes on labour income
			Reform sickness leave and disability benefit schemes
			Enhance the competition framework
			Other key priorities
			Structural indicators
		European Union
			Priorities supported by indicators
				Ease regulatory barriers to business operations
				Raise competition in network industries
				Reduce producer support to agriculture
			Other key priorities
			Structural indicators
		Finland
			Priorities supported by indicators
				Reduce the tax wedge on labour income
				Phase out early retirement pathways
				Reform the unemployment benefit system
			Other key priorities
			Structural indicators
		France
			Priorities supported by indicators
				Reduce the minimum cost of labour
				Reform employment protection legislation
				Reduce regulatory barriers to competition
			Other key priorities
			Structural indicators
		Germany
			Priorities supported by indicators
				Reduce average tax wedges on labour income
				Reduce regulatory barriers to competition
				Improve education outcomes
			Other key priorities
			Structural indicators
		Greece
			Priorities supported by indicators
				Reduce the implicit tax on continued work at older age
				Reduce barriers to entry in network industries
				Reduce the tax wedge on labour income
			Other key priorities
			Structural indicators
		Hungary
			Priorities supported by indicators
				Reduce the tax wedge on labour income
				Reduce disincentives to withdraw early from the labour force
				Ease business regulations
			Other key priorities
			Structural indicators
		Iceland
			Improve education outcomes
			Reduce producer support to agriculture
			Lower barriers to entry for domestic and foreign firms
			Other key priorities
			Structural indicators
		Ireland
			Priorities supported by indicators
				Strengthen work incentives for women
				Strengthen competition in telecommunications and transport industries
				Enhance R&D spending and innovation
			Other key priorities
			Structural indicators
		Italy
			Priorities supported by indicators
				Reduce public ownership and regulatory barriers to competition
				Improve educational outcomes
				Reduce the tax wedge on labour income
			Other key priorities
			Structural indicators
		Japan
			Priorities supported by indicators
				Ease regulations in network industries
				Reduce producer support to agriculture
				Reform employment protection legislation for regular employment
			Other key priorities
			Structural indicators
		Korea
			Priorities supported by indicators
				Ease regulation in network industries
				Reduce producer support to agriculture
				Reform employment protection legislation for regular employment
			Other key priorities
			Structural indicators
		Luxembourg
			Priorities supported by indicators
				Reduce disincentives for the unemployed
				Improve achievement in primary and secondary education
				Reduce the implicit tax on continued work at older ages
			Other key priorities
			Structural indicators
		Mexico
			Priorities supported by indicators
				Raise achievement in primary and secondary education
				Reduce barriers to entry in network industries
				Reduce barriers to foreign ownership
			Other key priorities
			Structural indicators
		Netherlands
			Priorities supported by indicators
				Reform employment protection legislation for regular employment
				Lower marginal effective tax rates
				Reform disability benefit schemes
			Other key priorities
			Structural indicators
		New Zealand
			Priorities supported by indicators
				Reduce barriers to competition in network industries
				Reduce educational under-achievement among minority groups
				Raise effectiveness of R&D support
			Other key priorities
			Structural indicators
		Norway
			Priorities supported by indicators
				Reduce the scope of public ownership
				Reform disability and sickness benefit schemes
				Reduce producer support to agriculture
			Other key priorities
			Structural indicators
		Poland
			Priorities supported by indicators
				Remove barriers to entrepreneurship
				Reform the tax and benefit system
				Improve the efficiency of education
			Other key priorities
			Structural indicators
		Portugal
			Priorities supported by indicators
				Improve secondary education attainment
				Reduce administrative burdens on business
				Reform employment protection legislation
			Other key priorities
			Structural indicators
		Slovak Republic
			Priorities supported by indicators
				Raise education achievement and tertiary attainment
				Reduce regulatory barriers to competition
				Eliminate barriers to female labour force participation
			Other key priorities
			Structural indicators
		Spain
			Priorities supported by indicators
				Improve educational attainment in secondary education
				Limit the extent of administrative extension of collective agreements
				Ease employment protection legislation for permanent workers
			Other key priorities
			Structural indicators
		Sweden
			Priorities supported by indicators
				Reduce marginal taxes on labour income
				Reform sickness and disability benefit schemes
				Reform employment protection legislation
			Other key priorities
			Structural indicators
		Switzerland
			Priorities supported by indicators
				Remove barriers to competition in network industries
				Reduce producer support to agriculture
				Facilitate full-time labour force participation for women
			Other key priorities
			Structural indicators
		Turkey
			Priorities supported by indicators
				Reduce the minimum cost of labour
				Improve educational achievement
				Reform employment protection legislation
			Other key priorities
			Structural indicators
		United Kingdom
			Priorities supported by indicators
				Further reform disability benefit schemes
				Improve the education achievement of young people
				Improve public infrastructure, especially for transport
			Other key priorities
			Structural indicators
		United States
			Priorities supported by indicators
				Improve primary and secondary education
				Restrain health care costs
				Reduce producer support to agriculture
			Other key priorities
			Structural indicators
	Chapter 4. Structural Policy Indicators
		Figure 4.1. Cost of labour
		Figure 4.2. Net income replacement rates for unemployment benefits
		Figure 4.3. Average tax wedge on labour
		Figure 4.4. Marginal tax wedge on labour
		Figure 4.5. Labour taxation
		Figure 4.6. Implicit tax on returning to work, 2004
		Figure 4.7. Income support for disability and sickness
		Figure 4.8. Employment Protection Legislation (EPL)
		Figure 4.9. Difference between coverage rates of collective bargaining agreements and trade union density rates
		Figure 4.10. Product market regulation
		Figure 4.11. State control of business operations
		Figure 4.12. Barriers to entrepreneurship
		Figure 4.13. Barriers to entry
		Figure 4.14. Barriers to foreign direct investment
		Figure 4.15. Importance of external trade tariffs
		Figure 4.16. Sectoral regulation in the transport sector
		Figure 4.17. Sectoral regulation in the energy sector
		Figure 4.18. Sectorial regulation in the post and telecommunications sector
		Figure 4.19. Sectoral regulation in retail and professional services
		Figure 4.20. Educational attainment, 2006
		Figure 4.21. Educational achievement
		Figure 4.22. Health expenditure, 2006
		Figure 4.23. Producer support estimate to agriculture
		Figure 4.24. Public investment
		Figure 4.25. Financial support for private R&D investment
Part II. Thematic Studies
	Chapter 5. Taxation and Economic Growth
		Introduction
		Tax structures and growth
			Figure 5.1. Composition of tax revenues, 2005
		Effects of different taxes on GDP per capita
			Property taxes
				Figure 5.2. Recurrent taxes on immovable property, 2006
			Consumption taxes
				Figure 5.3. VAT revenue ratio, 2005
			Personal income taxes
				Figure 5.4. Tax wedge for a single individual at average earnings
				Box 5.1. Recent OECD evidence on the effects of taxation on economic performance
				Figure 5.5. Statutory income tax progressivity for single individuals at average earnings
				Figure 5.6. Top statutory personal income tax rates on wage income
			Corporate income taxes
				Figure 5.7. Statutory corporate income tax rates
				Figure 5.8. Tax adjusted user cost (machinery and equipment), 2004
				Figure 5.9. Tax incentives for one USD of research and development in OECD countries, 2007
		Concluding remarks
		Notes
		Bibliography
	Chapter 6. Infrastructure Investment: Links to Growth and the Role of Public Policy
		Introduction
		Network infrastructure provision
			Box 6.1. The measurement of infrastructure
			Figure 6.1. Investment in infrastructure sectors
		Infrastructure investment and economic growth
			Table 6.1. Countries with relatively low levels of infrastructure provision, 1975­2006
		Role of public policies
			Ownership and provision
				Box 6.2. Public-private partnerships (PPPs)
					Figure. Value of announced public-private partnership deals in the OECD, 1994-2007
			A competitive environment
			The regulator and pricing
				Figure 6.2. Independence of the regulator in OECD countries
				Figure 6.3. Pricing regimes
			Ensuring efficient use
		Concluding comments
		Notes
		Bibliography
		Annex 6.A1. Public-private Partnerships: An Indicator of Framework Conditions
			Figure 6.A1.1. Indicator values of PPP policy settings
	Chapter 7. Reform of Product Market Regulation in OECD Countries: 1998-2008
		Introduction
			Box 7.1. Product market regulation and economic growth
		Countries’ current regulatory stance
			Figure 7.1. Countries’ relative positions in 2008
		Reform of product market regulation since 1998
			Figure 7.2. Development of aggregate product market regulation since 1998
			Figure 7.3. Convergence in aggregate PMR
			Box 7.2. Factors influencing product market reform
		The sources of reform
			Figure 7.4. Sources of reform in product market regulation
		Potential for future reform
			Figure 7.5. Distance from best practice regulation, 2008
		Notes
		Bibliography
		Annex 7.A1. The OECD Indicators of Product Market Regulation
			Figure 7.A1.1. The tree structure of the integrated PMR indicator
		The PMR System: Description of the Low­Level Indicators
		Notes
	Chapter 8. Population Structure, Employment and Productivity
		Introduction
		Population structures across OECD countries
			Figure 8.1. Differences in population structure across OECD countries
		Working-age population structure and employment performance
			Figure 8.2. Group-specific employment rates vs aggregate employment rate, 2007
			Table 8.1. Population structure and employment performance, 2004
			Figure 8.3. The share of population with below upper-secondary education is negatively correlated with the total employment rate
		Working-age population structure and productivity
			Table 8.2. Productivity levels by age groups and education levels
			Figure 8.4. Mechanical effect of population and employment-rate structure differences vis-à-vis the United States on average hourly productivity, 2004
			Box 8.1. Long-term trade-off between labour utilisation and productivity
				Figure. Employment and productivity changes when matching US employment rates within each group, 20041
		Conclusions and policy implications
			Figure 8.5. Mechanical effect of population structure differences vis-à-vis the United States on labour utilisation and hourly productivity, 2004
			Figure 8.6. Structure-adjusted labour utilisation, labour productivity and GDP per capita differences, 2004
		Notes
		Bibliography