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Begin New Search Content Type Working Paper Publishing Institution The Organisation for Economic Co-operation and Development

1. Pension Reform in China

Author:
Felix Salditt, Peter Whiteford, and Willem Adema
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China is currently in the process of developing the largest pension system in the world, and it is doing this at a time of unparalleled economic and demographic transition. The central government has followed a step-by-step approach to develop a system that can accommodate a rapidly aging society within a rapidly growing, but still largely underdeveloped economy. This paper analyses how far the process of creating a national old age insurance system had proceeded by the end of 2006. It provides a detailed description of this system and an assessment of to what degree it has so far achieved ?its primary goal of social security for more people?
Topic:
Economics, Reform, Welfare, and Pension
Political Geography:
China and Asia

2. Toward a More Efficient Taxation System in New Zealand

Author:
Annabelle Mourougane
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
After the radical reforms undertaken in the 1980s, the NZ tax system has long been regarded as one of most efficient within the OECD, and is based on a comprehensive income approach. Looking forward, the country will require a tax regime that helps the economy to continue raising living standards, supports savings and investment and copes with emerging pressures such as increasing geographic mobility of labour and capital. In this context, it will be important to have in place a clear long-term direction for the tax system to guide reforms. There are at least two broad options that are worth considering: adapting the system within a comprehensive income approach or adopting a dual income tax system. Future changes to the tax system need to be consistent with the approach ultimately adopted. In any case, a number of limitations of current tax bases will need to be tackled.
Topic:
Economics, Tax Systems, Collaborative Efficiency, and Investment
Political Geography:
New Zealand and Oceania

3. Why has Swedish Inflation been Persistently Low?

Author:
Felix Hufner
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Average inflation in Sweden has been one of the lowest among European countries since the mid- 1990s. Three supply-side factors help to explain this phenomenon, all related in some sense to increased global integration. First, a shift towards imports from low-cost producing countries has resulted in falling import prices. Second, deregulation and increased product market competition with foreign companies entering the market has led to price falls in some sectors, notably in retailing. Third, wage growth has lagged productivity and kept unit labour costs down. This paper reviews these factors and analyzes the policy options for the central bank.
Topic:
Economics, Labor Issues, Monetary Policy, and Inflation
Political Geography:
Europe, Sweden, and Scandinavia

4. The Swedish Housing Market Better Allocation via Less Regulation

Author:
Felix Hufner and Jens Lundsgard
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
While several sectors in the economy have been deregulated, the Swedish housing market remains distorted, hindering an optimal matching of supply and demand. In the rental market the rent setting framework with its focus on cost-based rents in the public sector prevents a price response, leading to long queues in some regions and vacancies in others. Many Swedes that would have preferred otherwise are driven into the owner-occupied segment, where prices are increasing strongly, and rising above an estimated fundamental value. The supply of new dwellings is made more difficult by an uncompetitive construction industry, coupled with cumbersome planning regulations and few incentives for municipalities to issue more land. On the fiscal side, real estate taxes are below neutral levels, implying an indirect subsidy to housing. This paper presents a review of the recent steps to abolish real estate taxes and also proposes comprehensive reform of regulations in the rental housing sector.
Topic:
Reform, Regulation, Public Sector, and Housing
Political Geography:
Europe, Sweden, and Scandinavia

5. Income Inequality, Poverty and Social Spending in Japan

Author:
Randall S. Jones
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Income inequality and relative poverty among the working-age population in Japan have risen to levels above the OECD average. This trend is partially explained by labour market dualism, with an increasing proportion of non-regular workers who are paid significantly less than regular workers, as well as by other factors, including the ageing of the workforce. Social spending as a share of GDP has been expanding in the context of population ageing, although it remains below the OECD average and the proportion received by low-income households is small. Consequently, the impact of social spending on inequality and poverty is weak compared to other OECD countries and inadequate to offset the deterioration in market income. The scope for increasing social spending is constrained by the fiscal situation. Instead, reversing the upward trend in inequality and poverty requires reforms to reduce labour market dualism and better target social spending on low-income households, particularly single parents.
Topic:
Poverty, Income Inequality, Social Services, and Housing
Political Geography:
Japan and Asia

6. Pharmaceutical Pricing and Reimbursement Policies in Switzerland

Author:
Valerie Paris and Elizabeth Docteur
Publication Date:
06-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This paper examines aspects of the policy environment and market characteristics of the Swiss pharmaceutical sector, and assesses the degree to which Switzerland has achieved certain policy goals. In Switzerland, pharmaceutical spending has not been growing faster than health expenditure as a whole, as has been the case in many other OECD countries. Swiss pharmaceutical spending per capita and as a share of GDP is modest by OECD standards. This in part reflects relatively low levels of pharmaceutical consumption, given that public prices are among the highest in Europe and the Swiss tend to be early adopters of new pharmaceutical products. Switzerland’s regulation of prices for reimbursed drugs, based on referencing across countries and within the therapeutic class for products with comparators, appears to result in prices lower than what would be obtained absent regulation. Although ex-manufacturer prices are somewhat high relative to other European countries, recent reforms have reduced the differential. While costs are under control, Switzerland has scope to improve the cost-effectiveness of its expenditures in the pharmaceutical area. Generic penetration of the market is increasing but falls short of what has been achieved elsewhere and the prices of generic products are higher than what is found in other countries.
Topic:
Social Policy, Drugs, Mediation, and Pharmaceuticals
Political Geography:
Europe and Switzerland

7. The Unemployment Impact of Immigration in OECD Countries

Author:
Sébastien Jean and Miguel Jimenez
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This paper assesses the consequences of immigration for natives' unemployment in OECD countries and investigates the role played by product and labour market policies in the economy's adjustment to immigration inflows. The estimations, combining a skill-level and an aggregate approach using data for males, cover eighteen OECD countries over the period 1984-2003. While no significant long-run impact is found, an increase in the share of immigrants in the labour force is estimated to raise temporarily natives' unemployment, over a period of approximately five to ten years. Anticompetitive product market regulations are found to increase both the magnitude and the persistence of this impact, while more stringent employment protection legislation magnifies its persistence, and a higher average replacement rate of unemployment benefits increases its magnitude.
Topic:
Migration, Labor Issues, Immigration, Developing World, and Unemployment
Political Geography:
Global Focus

8. Migration in OECD countries Labour Market Impact and Integration Issues

Author:
Sébastien Jean, Orsetta Causa, Miguel Jimenez, and Isabelle Wanner
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
immigration for natives' labour market outcomes, as well as issues linked to immigrants' integration in the host country labour market. Changes in the share of immigrants in the labour force may have a distributive impact on natives' wages, and a temporary impact on unemployment. However, labour market integration of immigrants (as well as integration of second-generation immigrants - both in terms of educational attainments and of labour market outcomes) remains the main challenge facing host economies. In both cases, product and labour market policies have a significant role to play in easing the economy's adjustment to immigration.
Topic:
Migration, Labor Issues, Immigration, and Employment
Political Geography:
Global Focus

9. Integration of Immigrants in OECD Countries Do Policies Matter?

Author:
Orsetta Causa and Sébastien Jean
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This working paper assesses the ease of immigrants' integration in OECD labour markets by estimating how an immigration background influences the probability of being active or employed and the expected hourly earnings, for given individual characteristics. Applying the same methodology to comparable data across twelve OECD countries, immigrants are shown to significantly lag behind natives in terms of employment and/or wages. The differences narrow as years since settlement elapse, especially as regards wages, reflecting progressive assimilation. Strong differences in immigrant-to-native gaps are also observed across countries, and the paper shows that they may, to a significant extent, be explained by differences in labour market policies, in particular unemployment benefits, the tax wedge and the minimum wage. In addition, immigrants are shown to be overrepresented among outsiders in the labour market and, as such, highly sensitive to the difference in employment protection legislation between temporary and permanent contracts.
Topic:
Migration, Labor Issues, Immigration, Employment, and Social Services
Political Geography:
Global Focus

10. Family Policy in Hungary How to Improve the Reconciliation between Work and Family?

Author:
Philip Hemmings
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Hungarian family policy focuses on providing generous options to take time off work to look after children. This system not only contributes to Hungary’s low employment rate but encourages long separation from the labour market, has largely failed to significantly influence fertility rates and is relatively expensive to run. This paper looks at how to shift the policy focus towards reconciling work and family life. Reasons for under-provision in childcare by local governments are discussed and recommendations for further central-government intervention to improve supply are made. Recommendations for reform are also made regarding the complex system of family cash benefits and leave allowances.
Topic:
Labor Issues, Family, Social Services, and Social Roles
Political Geography:
Hungary and Central Europe

11. Globalisation and Higher Education

Author:
Simon Marginson and Marijk van der Wene
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Economic and cultural globalisation has ushered in a new era in higher education. Higher education was always more internationally open than most sectors because of its immersion in knowledge, which never showed much respect for juridical boundaries. In global knowledge economies, higher education institutions are more important than ever as mediums for a wide range of cross-border relationships and continuous global flows of people, information, knowledge, technologies, products and financial capital. Even as they share in the reinvention of the world around them, higher education institutions, and the policies that produce and support them, are also being reinvented. For the first time in history every research university is part of a single world-wide network and the world leaders in the field have an unprecedented global visibility and power. Research is more internationalised than before and the mobility of doctoral students and faculty has increased. The specifically global element in academic labour markets has gained weight, especially since the advent of global university rankings. This working paper explores the issues for national policy and for individual institutions. Part I provides an overview of globalisation and higher education and the global responses of national systems and individual institutions of higher education. Part II is focused on certain areas of policy with a strong multilateral dimension: Europeanisation, institutional rankings and typologies and cross-border mobility.
Topic:
Education, Globalization, Multilateralism, and Higher Education
Political Geography:
Global Focus

12. Privatisation in the Meda Region

Author:
Celine Kauffmann and Lucia Wegner
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This paper builds on a new database (PRIVMEDA) in order to assess the progress of the privatisation process in the MEDA countries of Algeria, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia and Turkey. The first part of the paper offers an overview of the privatisation record from 1990 to 2006. It shows that, as in other parts of the world, the first wave of privatisations in the 1990s, which focused almost exclusively on profit-making enterprises in the tourism, transport, food and construction material sectors, slowed down towards the early 2000s and rebounded in 2005 when larger utilities where earmarked for sale. The second part of the paper assesses the outcome of the privatisation process in light of three key objectives: fiscal proceeds, economic efficiency and the development of the local private sector. It concludes that privatisation in the MEDA region can successfully promote efficiency and private sector development only when embedded in a package of measures, including the setting up of a proper regulatory framework, the improvement of the business climate and the liberalisation of financial markets.
Topic:
Privatization, Tourism, Regulation, and Financial Markets
Political Geography:
Turkey, Israel, Algeria, Lebanon, Syria, Egypt, Jordan, Morocco, Tunisia, and Malta

13. Improving Education Outcomes in the Slovak Republic

Author:
David Carey
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Improving education outcomes is vital for achieving convergence with GDP per capita levels in Western European countries and for reducing income inequality. While some education outcomes are favourable, such as the low secondary-school drop-out rate, others have room for improvement: education achievement is below the OECD average and strongly influenced by socio-economic background; Roma children, who are mainly from disadvantaged socio-economic backgrounds, have particularly poor achievement; labour-market outcomes are poor for graduates of secondary vocational programmes not leading to tertiary education; and tertiary attainment is low, albeit rising. Reforms have been made in recent years or are planned to address many of these weaknesses, but much remains to be done. In particular, more progress needs to be made in increasing participation in early childhood education and care, reducing stratification in the education system, helping Roma children to integrate into the education mainstream, and in attracting high quality graduates to teaching, especially in socio-economically disadvantaged schools. In addition, secondary vocational education not leading to tertiary education needs to be made more pertinent to labour-market requirements. Tertiary education also needs to be made more attractive for technical secondary school graduates.
Topic:
Education, Labor Issues, Income Inequality, and Socioeconomics
Political Geography:
Europe and Eastern Europe

14. Enhancing Incentives to Improve Performance in the Education System in France

Author:
Paul O'Brien
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The French education system has a mixed record. A generally very successful pre-school and primary school level contrasts with underfunded public universities with high dropout rates which exist alongside very successful higher education institutions for elites. Initial education, especially secondary education and the universities, along with labour market policies themselves, do not always succeed in improving labour market entry for a significant proportion of young people. Parts of the management of education have been decentralised, yet educational institutions themselves generally have a very restricted degree of autonomy. The system of performance measurement and incentives, at all levels of education, needs to be reviewed.
Topic:
Education, Labor Issues, National & provincial initiatives, and Decentralization
Political Geography:
Europe and France

15. Combating Poverty and Social Exclusion in France

Author:
Stephanie Jamet
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Reducing poverty and social exclusion is an important objective for all French governments. Even though conventionally measured poverty is in fact lower than in most other countries, it is still higher than can be easily accepted. The current policy approach involves a large number of measures tailored to different circumstances. Some policies have unwanted side effects on labour market performance, and their cost-effectiveness could be improved to obtain better outcomes with the same resources. Concentrations of poverty and social exclusion in certain geographic areas and among certain groups of the population provide one of the most difficult challenges, for which contributions from education, labour market, housing, urban planning and anti-discrimination policies, as well as from the social services, are necessary.
Topic:
Poverty, Social Stratification, Inequality, and Social Roles
Political Geography:
Europe, France, and Western Europe

16. Meeting the Challenges of Decentralisation in France

Author:
Stephanie Jamet
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Despite France’s previously well-deserved reputation as a highly centralised state, a significant number of responsibilities have been devolved to regional and local government over the past two decades. The process has not been easy. The extremely large number of very small municipalities makes economies of scale in the implementation of policies hard to realise, and measures to overcome this have been at best only partially successful. Competence is often shared between levels of government, obscuring accountability, and the central government has often retained an arguably unnecessary degree of prerogatives. Reorganising the system to avoid overlapping responsibilities and improving transparency and accountability in local government finance provide some difficult challenges.
Topic:
Accountability, Local, Transparency, and Decentralization
Political Geography:
Europe, France, and Western Europe

17. Adjustment Options and Strategies in the Context of Agricultural Policy Reform and Trade Liberalisation

Author:
Osamu Kubota
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Reforming agricultural policies by reducing distorting support improves economic efficiency as a whole through a better allocation of resources. This implies that adjustment may have adverse effects on some agricultural households and other people engaged in the sector, in particular in the short term. There may also be negative impacts on upstream and downstream sectors and on regional economies that rely on commodities whose prices and production levels fall with reductions in support and protection. Despite pressures to reform to meet multilateral and bilateral trade commitments and to respond to budgetary constraints, these adverse impacts are a major reason why governments find it difficult to make progress in policy reform.
Topic:
Agriculture, Reform, Trade Liberalization, and Trade
Political Geography:
Global Focus

18. Austria's Deepening Economic Integration with Central and Eastern Europe

Author:
Rina Bhattacharya
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The Austrian economy has benefited substantially from the expansion of economic ties with Central and Eastern Europe, which has provided a significant boost to growth, productivity, competitiveness, profits and (more controversially) aggregate employment. Indeed, among the older EU member states, Austria has benefited the most from the transition of the Central and Eastern European countries from planned economies to market economies, and the subsequent entry into the EU of the ten new member states, mostly from Central and Eastern Europe, in 2004. However, important segments of the population in Austria, and in particular low-skilled and semi-skilled workers in the manufacturing sector, appear to have been adversely affected by these developments. There is thus a need for policy measures to help those segments of the workforce that have had difficulty coping with growing competition from Central and Eastern Europe. Furthermore, more can be done to make Austria a more attractive location for highly skilled and well qualified expatriate workers and to maintain Vienna’s position as a central hub for multinationals operating in the region. These include, in particular, the need to strengthen eastern transportation links and to reduce to a minimum bureaucratic hurdles and red tape for foreign enterprises seeking to operate out of Vienna.
Topic:
International Trade and Finance, Regional Cooperation, Economic Cooperation, and Financial Stability
Political Geography:
Europe, Eastern Europe, Austria, and Central Europe

19. Using Minimum Energy in Ireland's Schools

Author:
John Dolan
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This article explains how Ireland has incorporated low energy design into primary and post-primary schools and gives an overview of projects that have helped inform this approach.
Topic:
Education, Energy Policy, Science and Technology, and Green Technology
Political Geography:
Europe and Ireland

20. Unauthorized Migrants in the United States

Author:
Jeffrey Passel
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
This report discusses methods of measuring unauthorized migration to the United States. The “residual method” involves comparing an analytic estimate of the legal foreign-born population with a survey-based measure of the total foreign-born population. The difference between the two population figures is a measure of the unauthorized migrant population in the survey; it can then be corrected for omissions to provide a measure of the total unauthorized population. The report includes a detailed description of the residual methods and the underlying data and assumptions as it has been applied to recent data from the Current Population Survey (CPS) and decennial censuses. The paper presents new results of estimates derived from the march 2006 CPS which show that the unauthorized population in the U.S. has reached 11.5 million; of these, 6.5 million or 57% are from Mexico. The report also presents derived data on a range of social and economic characteristics of the unauthorized population developed with an extension of the residual estimates. Finally, historical data on trends in unauthorized migration and several alternative estimation methods are presented and discussed.
Topic:
Migration, Labor Issues, Immigration, Border Control, and Socioeconomics
Political Geography:
United States, Central America, North America, and Mexico