Good Jobs for All in a Changing World of Work THE OECD JOBS STRATEGY

Foreword......Page 4
Acknowledgements......Page 6
Chapter 1.  Key messages and recommendations......Page 13
Introduction......Page 14
Promote an environment in which high-quality jobs can flourish......Page 15
Prevent labour market exclusion and protect individuals against labour market risks......Page 16
Prepare for future opportunities and challenges in a rapidly changing labour market......Page 17
1.2. Policy implementation......Page 18
1.3. Roadmap......Page 19
References......Page 22
Part I. Overview......Page 23
Chapter 2.  The challenge: Broadly shared productivity gains......Page 24
2.1. The challenge......Page 25
The labour market as an engine of productivity growth......Page 34
The labour market as a transmission channel of productivity gains to wages......Page 35
Conclusions......Page 36
Notes......Page 37
References......Page 38
Chapter 3.  A new framework for assessing labour market performance......Page 44
3.1. The OECD Jobs Strategy framework......Page 45
3.2. The OECD Jobs Strategy dashboard......Page 49
Conclusions......Page 56
Notes......Page 57
References......Page 58
Annex 3.A.......Page 59
Chapter 4.  Policies and institutions to enhance labour market performance......Page 65
Promote an environment in which high quality jobs can thrive......Page 66
Promote worker productivity within firms and through the effective reallocation of resources across firms......Page 67
Ensure that productivity gains are shared with workers, particularly those with low skills......Page 69
Promote job quantity and job quality by keeping non-wage labour costs down......Page 71
Effective safety nets against labour market shocks improve job quality......Page 72
In order to strengthen incentives to work, employability and opportunities, a comprehensive activation strategy is needed…......Page 73
… which combines active policies with appropriate taxes and transfers by enforcing a system of “mutual obligations”......Page 74
Promote equal opportunities......Page 75
Enhance upward mobility and career development over the life-course......Page 76
Redistribution through the tax-benefit system is crucial for limiting financial hardship......Page 79
Reduce spatial inequalities and support lagging regions......Page 80
Specific policies are needed to ensure that underrepresented and disadvantaged groups are not left behind......Page 81
Macro-economic and structural policies and institutions can strengthen labour market resilience and enhance long-term labour market performance......Page 82
Rapid structural change places a premium on efficient labour re-allocation and on measures to help displaced workers back into work quickly......Page 84
Non-standard forms of work contribute to the adaptability of labour markets, but also raise concerns about job quality......Page 85
The challenges posed by the future of work may require a more fundamental shake-up of labour market, skills and social policies, rather than just incremental changes to the systems in place.......Page 86
Preparing for future opportunities and challenges in a rapidly changing economy and labour market.......Page 89
Reference......Page 90
Chapter 5.  Implementing reforms......Page 91
Identifying policy priorities......Page 92
Developing country-specific recommendations......Page 93
5.2. Implementing reforms......Page 94
Conclusions......Page 96
Chapter 6.  Detailed policy recommendations......Page 97
2. Promote growth and quality job creation by removing barriers to the creation and growth of new businesses, the restructuring or exit of underperforming ones, and by creating an entrepreneurship-friendly environment......Page 98
4. Facilitate the adoption of flexible working-time arrangements to help firms adjust to temporary changes in business conditions, while helping workers to reconcile work and personal life.......Page 99
7. Promote the inclusiveness of collective bargaining systems while providing sufficient flexibility for firms to adapt to aggregate shocks and structural change.......Page 100
8. Foster the development of suitable skills for labour market needs, while promoting the use of these skills and their adaptation during the working life to respond to evolving skills needs.......Page 101
1. Promote equal opportunities to avoid that socio-economic background determines opportunities in the labour market through its role for the acquisition of relevant labour market skills or as a source of discrimination.......Page 102
3. Develop a comprehensive strategy to activate and protect workers, by combining adequate and widely accessible out-of-work benefits with active programmes in a mutual-obligations framework.......Page 103
4. Adopt specific policies for underrepresented and disadvantaged groups, ensuring that they simultaneously address all barriers to employment.......Page 104
2. Enable displaced workers to move quickly into jobs, using a mixture of general and targeted income support and re-employment assistance, combined with prevention and early intervention measures.......Page 105
4. Plan for the future by anticipating change; facilitating inclusive dialogue with the social partners and other relevant stakeholders on the future of work; and where necessary, adapting today’s labour market, skills and social policies to the emer.........Page 106
2. Ensure that reforms are fully implemented, effectively enforced and rigorously evaluated; invest in data collection if suitable data are not available.......Page 107
Part II. More and better jobs......Page 108
Chapter 7.  Fostering worker productivity......Page 109
Skills are a key determinant of worker productivity and wages......Page 110
To reap the full potential of skills for worker productivity they need to be well-matched to job demands and fully used......Page 112
7.2. Promoting the conditions for learning and innovation in the workplace......Page 113
Good working conditions not only matter for worker well-being but also for firm performance......Page 114
The role of policies and institutions for good firm performance......Page 116
Work and organisational practices are set by firms subject to legal standards and social norms......Page 117
Social dialogue in the workplace has the potential to promote better outcomes for firms and workers......Page 118
An efficient allocation of jobs is needed to ensure that high-performance firms create high-quality jobs......Page 119
Employment protection has raised concerns over labour market fluidity and duality......Page 120
Employment protection needs to balance flexibility for firms with security for workers......Page 123
Reduce barriers to firm entry and exit......Page 124
Promote the mobility of workers across jobs......Page 125
Conclusions......Page 126
Notes......Page 127
References......Page 129
Chapter 8.  Promoting fair wages and labour taxes......Page 135
Minimum wages, as a stand-alone policy, can be useful but tend to have limits......Page 136
Coordinating minimum wages with the tax and benefit systems is key to make them more effective......Page 137
8.2. Collective bargaining can contribute to a broader sharing of productivity gains......Page 139
Collective bargaining has increasingly come under pressure......Page 140
Collective bargaining can contribute to better labour market performance......Page 142
Balancing inclusiveness and flexibility in collective bargaining systems......Page 143
Labour taxes differ significantly in terms of their level and composition across countries......Page 145
The tax wedge has potentially important consequences for employment and wages......Page 146
Broaden the base and increase the progressivity of labour taxation, while strengthening the responsibility of employers for labour market risks......Page 148
Conclusion......Page 149
Notes......Page 150
References......Page 153
Chapter 9.  Protecting and supporting workers......Page 160
Insuring workers against joblessness......Page 161
Unemployment benefits smooth consumption and can also contribute to better post-unemployment outcomes if well designed......Page 162
Generous unemployment benefits may discourage job-search efforts and increase joblessness......Page 163
The design of unemployment benefit systems needs to strike a careful balance between their costs and benefits......Page 164
Well-targeted, permanent in-work benefits can make work pay and support living standards of low-income families, provided incentives are properly understood......Page 165
Participation tax rates for second earners can be lowered by moving to individual taxation......Page 166
A comprehensive activation strategy is needed......Page 167
Universal and moderately-generous benefits increase the scope and effectiveness of a mutual-obligations approach to activation......Page 169
Strictly-enforced eligibility criteria for benefits can motivate jobseekers to look for jobs, but require a balanced articulation of warnings and sanctions......Page 171
Effective out-placement services require reaching out to employers......Page 172
Enhancing the cost-effectiveness of employment services through sound performance management and the use of digital technologies......Page 173
The quality of the work environment is key for the sustainability of work......Page 175
Promote and enforce legislation for psychosocial risk assessment and prevention......Page 176
Provide adequate financial incentives to employers to promote good working conditions......Page 177
Conclusions......Page 179
Notes......Page 180
References......Page 182
Part III. Labour market inclusiveness......Page 190
Chapter 10.  Tackling deep and persistent inequalities in the labour market......Page 191
10.1. Setting the scene......Page 192
Intergenerational mobility is low in many OECD countries......Page 195
Improving social mobility......Page 196
Public investment in quality education, from early childhood education and care through tertiary education......Page 197
Tackling spatial segregation and strengthening lagging regions......Page 198
Promoting adult learning among disadvantaged groups......Page 199
Reducing barriers to participation......Page 200
Tackling labour market segmentation......Page 202
Contractual segmentation has tended to increase before the global financial crisis......Page 203
Tackling contractual segmentation......Page 204
Redistribution has an important role to play but has weakened over time......Page 207
Making redistribution fairer and more efficient......Page 208
Government transfers are needed to address financial hardship......Page 209
Conclusions......Page 210
Notes......Page 211
References......Page 213
Chapter 11.  Enhancing the prospects of disadvantaged workers in the labour market......Page 221
Introduction......Page 222
11.1. Young people with low skills......Page 224
Vocational education and training can help smooth school-to-work transitions......Page 226
Activating unemployed and inactive youth......Page 227
Support for at-risk youth is often difficult to co-ordinate......Page 228
Ensuring access to early childhood education and care......Page 229
Towards a better sharing of unpaid work among parents......Page 231
Greater control over working hours......Page 232
Recognition of qualifications can help migrants better use their skills......Page 233
Discrimination needs to be overcome to improve migrants’ labour market access......Page 234
Migrants arriving for humanitarian reasons often require additional support......Page 235
Young migrants and children of poorly educated migrants......Page 236
11.4. People with disabilities......Page 237
A growing “medicalisation” of disability policy......Page 238
Strengthening responsibilities and incentives......Page 239
Moving from disability to employability......Page 240
11.5. Older workers......Page 241
Changing work and retirement patterns......Page 242
Enhancing job quality to make the most of a diverse workforce......Page 243
Investing in effective skill development strategies over the life course......Page 244
Removing barriers to retain and hire older workers......Page 245
Packaging measures......Page 246
References......Page 247
Chapter 12.  Managing self-employment, new forms of work, and the platform economy......Page 253
Trends in self-employment, own-account and platform work......Page 254
What has driven these trends?......Page 257
Advantages and disadvantages......Page 258
Balancing incentives......Page 259
Addressing worker classification......Page 260
Improving working conditions......Page 262
The challenges......Page 265
Improving social protection for the self-employed......Page 266
Seeking fair taxation of self-employed income......Page 268
Strengthening labour relations and worker’s voice......Page 269
Promoting investments in skills......Page 270
Conclusion......Page 271
Notes......Page 272
References......Page 273
Part IV. Resilient and adaptable labour markets......Page 278
Chapter 13.  Nurturing labour market resilience......Page 279
13.1. Labour market resilience during and after the crisis of 2008-09......Page 280
The role of macroeconomic policies......Page 282
Short-time work schemes preserve jobs in times of crisis, but can become an obstacle to structural change in good times......Page 283
Income-support policies are crucial for alleviating financial hardship among job losers and supporting aggregate demand......Page 286
To avoid excessive job losses and weak job recoveries employment protection rules need to be balanced across contract types......Page 290
Conclusion......Page 291
References......Page 292
Chapter 14.  Promoting adaptable labour markets......Page 296
Keeping entry barriers low to favour the emergence of innovative firms......Page 297
Ensuring the smooth exit of inefficient firms......Page 299
Enhancing geographical mobility to foster efficient reallocation......Page 300
Adult learning is key to address skill imbalances......Page 301
Scaling up adult learning......Page 302
Promote the responsiveness of adult learning systems to changing labour market needs......Page 303
Promote the cost-effectiveness of adult learning......Page 305
Make adult training worker-centred by linking it to individuals rather than jobs......Page 306
An effective activation strategy is essential......Page 307
Income-support policies alleviate the costs of displacement......Page 308
Policies to support lagging regions......Page 309
Conclusion......Page 310
References......Page 311
Part V. Implementing the OECD Jobs Strategy......Page 316
Chapter 15.  The political economy of reforms......Page 317
15.1. A good time for reform?......Page 318
15.2. Guiding principles for the design and implementation of a pro-active reform agenda......Page 319
Reforms of unemployment benefits and activation spending......Page 322
Reforms of product markets and employment protection legislation......Page 323
Macroeconomic policy support......Page 326
15.4. Winners and losers of reforms......Page 327
Structural reforms are best undertaken during good economic times......Page 329
Notes......Page 330
References......Page 331
Chapter 16.  Boosting labour market performance in emerging economies......Page 334
Economic development is lagging......Page 335
Jobs tend to be of poor quality and inclusiveness is low......Page 337
Informality is pervasive......Page 339
Improving educational enrolment and the quality of education......Page 341
Tackling pervasive skill mismatch......Page 342
Lowering the costs of formality while enhancing its benefits......Page 344
Enhancing compliance through enforcement, social dialogue and social norms......Page 345
Various innovative approaches to social assistance have emerged......Page 346
Cash transfers do not need to entail negative employment effects......Page 347
Address poverty at it roots and promote long-term labour market outcomes......Page 348
Support for displaced workers tends to be job-oriented......Page 349
Strengthening unemployment insurance for workers......Page 350
Conclusions......Page 351
Notes......Page 353
References......Page 355
Chapter 17.  Going national: Implementing the OECD Jobs Strategy......Page 362
17.1. An illustrative procedure of how to identify policy challenges......Page 363
Broad performance areas......Page 365
Dissecting policy challenges by broad performance areas......Page 366
Elements of broad policy packages to address country-specific challenges......Page 369
Fiscal and administrative capacity......Page 371
Preferences for redistribution and social dialogue......Page 373
Demographic factors: Ageing and migration......Page 374
References......Page 376