Browse by: "2023"

Two out of five OECD countries contract out some of the job brokerage and counselling functions of publicly financed employment services using outcome-based payment models. This paper examines several important aspects related to the design and implementation of such outsourcing. First, innovative payment models can improve incentives for external providers to offer training and more effective services for hard-to-place clients. Second, providing forward guidance to providers and accounting for contingencies can mitigate their risks, e.g. of being underpaid relative to expenses incurred, thus lowering service costs. Third, letting individuals choose a provider can result in services that are better tailored and foster ongoing competition between providers. Finally, automating data exchange can, somewhat paradoxically, improve data privacy and data protection while enabling new payment models. These and related findings are discussed with country examples based on desk research and interviews with stakeholders in several OECD countries. The paper builds on work conducted in the project “Reforming the Swedish Public Employment Service”, which was carried out with funding from the European Union via the Technical Support Instrument and was implemented by the OECD in cooperation with the European Commission's Directorate-General for Structural Reform Support.

This paper examines how the loss of biodiversity – and of the ecosystem services it provides – affects the various dimensions of fragility, amplifying existing risks and diminishing coping capacity in fragile contexts. It calls on all stakeholders in development co-operation to align (i) efforts to manage natural resources in a sustainable manner, (ii) measures protecting and restoring biodiversity, and (iii) actions addressing the causes of multidimensional fragility.

Climate-related development finance to fragile contexts has increased from both members of the Development Assistance Committee and multilateral providers. However, fragile contexts – and extremely fragile contexts in particular – remain under-served by climate-related development finance relative to other developing countries. In fragile contexts it can be hard to prioritise action on climate and environmental fragility, and difficult to access the financing necessary to do so. Providers can help address the underlying policy, financial and structural challenges, in order to better tailor climate-related development finance to the needs of fragile contexts.

This report explores the ways donors can best support sustainable and effective climate-related capacity development in Small Island Developing States (SIDS), in terms (1) access to climate finance; (2) climate data and services; (3) working with non-governmental partners; (4) regional and triangular approaches; and (5) effective delivery of capacity development. Based on OECD data, it provides an overview of bilateral official development assistance trends for climate-related capacity development in SIDS during 2015-21. Drawing from donor project and programme evaluations, interviews, two case studies and a literature review, the report identifies good practices and makes recommendations to donors.

The Autonomous Province of Bolzano-Bozen, Italy, has embraced the 2030 Agenda through a sustainability pact including its sustainable development strategy "Everyday for Future". The strategy defines seven fields of action that were derived from the SDGs framework to promote sustainability across policy areas such as the conservation of the natural environment, the reduction of greenhouse gas emissions, competitiveness and social justice. The SDGs offer a clear framework to tackle the province’s main territorial development challenges, such as climate change, the transition to sustainable agriculture, mobility, tourism, and affordable housing. This report provides guidance on how to harness the implementation of the SDGs to address these challenges through concrete measures across the seven fields of action, identify and manage synergies and trade-offs between sectoral policies and, in turn, help the province implement Everyday for Future.

The pandemic resulted in a significant increase in the number of deaths in many OECD countries. With detailed data now available by age and sex, this OECD Health Working Paper examines the trends and differences in mortality patterns over the three-year span of the pandemic. While a simple comparison of the raw number of deaths with reference to a historical base period has proved to be an important and straightforward indicator to assess the overall impact of the pandemic, most OECD countries have undergone major changes in population size and structure. This paper reviews the methodology of calculating changes in mortality to take account of such demographic trends and, in producing a revised set of estimates using adjusted numbers of deaths, highlights some important variations in mortality across years, countries and age groups.

Long-term unemployment remains a structural challenge for most OECD countries. Despite major efforts to address this issue, the efficiency and effectiveness of many existing active labour market policies are limited for jobseekers who face major vulnerabilities and have no ties to the labour market. Therefore, there is a need for innovative approaches that specifically address the barriers faced by long-term unemployed individuals in their labour market (re)integration. This paper discusses examples of promising practices from across Europe, which can serve as a source of inspiration for policymakers seeking new approaches to assist vulnerable jobseekers in overcoming the challenge of long-term unemployment.

Open finance enables the sharing of, and access to, financial sector data. This paper analyses the benefits, risks and implementation challenges of Open finance and provides policy recommendations for the safe and successful implementation of such data-sharing frameworks in finance. It considers the impacts of providing access to customers’ financial data and how to do this responsibly and safely, with due consideration for data privacy. The paper also discusses other consumer safeguards, notably related to consent and liability. Finally, it considers whether there is a need to support the development of technical infrastructure to promote data interoperability.

This study analyses the economic effects of the EU's ‘Fit for 55’ climate mitigation policies using the OECD ENV-Linkage model, a dynamic, global Computable General Equilibrium model. The model projects macroeconomic, sectoral, energy and emission trends for the EU, and for the five largest EU economies separately, up to 2035. Policy scenarios combine carbon pricing with regulations to reach the ‘Fit For 55’ emission reduction target in 2030. Additional scenarios analyse i) harmonised carbon pricing across countries and sectors, ii) different forms of revenue recycling from carbon pricing, iii) the effect of the EU’s proposed Carbon Border Adjustment Mechanism on competitiveness, and iv) the effect of Russia’s war against Ukraine on mitigation costs. Given the short time horizon of the analysis (until 2035), the model does not assess the positive economic benefits associated with fewer climate impacts and extreme climate events. ‘Fit for 55’ policies are projected to lead to a loss of GDP per capita of 2.1% in 2035 compared to the reference scenario (pre-‘Fit for 55’ policies), reflecting increasing production costs on the back of higher carbon pricing. Higher carbon pricing is also projected to lead to a loss of competitiveness in energy-intensive industries. The EU’s proposed Carbon Border Adjustment Mechanism may only partly mitigate the loss of competitiveness of energy-intensive industries. Harmonising carbon pricing across sectors would help limit the loss to GDP per capita, as a uniform carbon price is lower and allows for directing emission reduction efforts to sectors and countries with the lowest abatement costs. Finally, Russia’s war against Ukraine has not substantially increased the GDP costs of mitigation. Without the war, lower fossil fuel import prices would have led to higher fossil fuel demand, ultimately requiring more stringent mitigation action.

The provision of high-quality early childhood education and care (ECEC) is widely seen as a strategy to promote a more equitable and inclusive society due to its potential to give all children, and especially those from disadvantaged backgrounds, a strong basis for early development and well-being. This requires approaches that address the needs of the increasingly diverse populations of children participating in ECEC. A first step in this direction is to assess the prevalence of different dimensions of diversity (e.g., socio-economic disadvantage, special education needs, different first language, and refugee status) across ECEC centres, and the extent to which the quality of ECEC varies between more and less diverse centres. This working paper uses data from the TALIS Starting Strong 2018 survey to examine these questions in the nine participating countries, and to derive policy pointers to ensure that ECEC systems promote equity and inclusion in response to the diversity of children’s needs.

Women’s employment rates and wages are still lagging those of men across OECD countries, with average employment and wage gaps now around 15% and 12% respectively. Gaps narrowed at a relatively modest pace over the past decade, calling for further policy action. A lack of affordable high-quality childcare is often an obstacle to women’s participation in the labour market and notably to working full time. A very unequal sharing of parental leave between parents and challenges upon return to work further hampers women’s careers. Biases in the tax system may discourage women from working in some countries. Women face disadvantage in accessing management positions and entrepreneurship. A range of policies can help reduce gender gaps, including better childcare provision, incentivising parents to better share parental leave, re-skilling and upskilling on return from parental leave, encouraging gender equality within firms, integration programmes for foreign-born women, promoting women entrepreneurship and financial inclusion, and levelling taxation for second earners. Moreover, the multiple dimensions and root causes of gender inequality call for mainstreaming gender across policy domains.

This paper resents a measurement framework aiming to support the collection of comprehensive and internationally comparable quantitative and qualitative information on governmental innovation support programmes and instruments. It proposes a taxonomic system with definitions, classifications and reporting conventions aligned with OECD and other international standards. The framework is intended to support future OECD measurement efforts in this area and the analysis of innovation support portfolios within and across countries.

Multifactor productivity is a comprehensive measure of productivity where the underlying production function accounts for multiple factor inputs, traditionally labour and produced capital. While single-factor productivity is intuitively simple, such measure offers a biased picture of the economy because it attributes all variation in output growth to a single factor input (e.g. consumption of fossil fuels or material resources) while the role of other factors is ignored. Multifactor productivity aims at addressing this shortcoming, and as such it is a valuable component of the OECD set of Green Growth headline indicators. This paper presents further progress in measuring the EAMFP and related growth accounting indicators in 52 countries for 1996-2018. An important novelty is the inclusion of renewable natural resources such as land, timber and fisheries, and ecosystem services such as coastal and watershed protection. Exploratory results on accounting for renewable energy resources are also included.

The EU’s ambitious Green Deal aims at achieving net zero emissions by 2050. The EU is starting from a relatively good position. It has successfully reduced greenhouse gas emissions over the past decade. But further efforts are needed to reach the net zero target. These include an extension of emission trading to agriculture and the phase-out of generous subsidies for fossil fuels. Such efforts should be complemented by additional measures to shift to clean energy, notably more integrated electricity markets and deeper capital markets that provide the necessary investment in new technologies. Accelerating the green transition will also involve costs for displaced workers. Bolstering workers’ mobility and training will help improve labour reallocation and reduce transition costs.

The economic and fiscal costs of gender inequalities, such as the gender employment gap, are high. Intersectional analysis improves understanding of gender gaps and the measures needed to address them. This paper looks at how gender budgeting can be expanded to include intersectional analysis, allowing for consideration of how gender inequalities intersect with inequalities based on race, socioeconomic class, sexual orientation and disability. It provides examples from governments that have started to incorporate an intersectional approach to gender budgeting. It also highlights the main benefits and challenges associated with intersectional analysis and considers what governments can do to support an intersectional approach to gender budgeting.

The Mitigation Work Programme (MWP) was established at COP26 to urgently enhance mitigation ambition and implementation in this critical decade. This paper explores how the MWP could build on and amplify relevant existing efforts, within and outside the UNFCCC, to trigger the rapid scale up of mitigation efforts required to keep the temperature goal of the Paris Agreement within reach. As a multilateral platform backed by the legitimacy and convening power of the UNFCCC, the MWP could help to raise awareness of available tools and solutions, build momentum behind relevant ongoing mitigation-related initiatives without being prescriptive, and deliver more effective, targeted mitigation efforts across all fronts in the near-term. This paper also outlines potential options for the annual decision on the MWP which provides an important opportunity to maintain attention on the need to urgently scale up mitigation efforts and encourages learning-by-doing. The annual MWP decision could be structured around different mutually supportive elements including lessons learned from the MWP’s first year, follow-up from MWP activities and related mitigation commitments at previous COPs, synergies with other UNFCCC processes, and how to complement the global stocktake.

This analytical report was prepared by the OECD Higher Education Policy Team as part of the Education and Innovation Practice Community (EIPC), an action of the European Union’s New European Innovation Agenda, flagship 4 on “Fostering, attracting and retaining deep tech talent”. EIPC seeks to bring together peers from policy and practice to advance understanding of the competencies that can trigger and shape innovation for the digital and green transitions, and the mechanisms through which higher education can contribute to their development in secondary education (Strand 1), higher education (Strand 2), and adult upskilling and reskilling (Strand 3). This report for EIPC Strand 1 examines how higher education institutions (HEIs) can support teachers and school leaders in secondary schools to help their students develop competencies for innovation. Drawing on research evidence, practical examples and insights from the EIPC network and a wide range of OECD and EU education systems, it offers five options for consideration by education policy makers on how to strengthen HEIs’ role in supporting secondary education to develop human capacity for innovation.

This analytical report was prepared by the OECD Higher Education Policy Team as part of the Education and Innovation Practice Community (EIPC), an action of the European Union’s New European Innovation Agenda, flagship 4 on “Fostering, attracting and retaining deep tech talent”. EIPC seeks to bring together peers from policy and practice to advance understanding of the competencies that can trigger and shape innovation for the digital and green transitions, and the mechanisms through which higher education can contribute to their development in secondary education (Strand 1), higher education (Strand 2), and adult upskilling and reskilling (Strand 3). This report for EIPC Strand 1 examines how higher education institutions (HEIs) can support the integration of competencies for innovation into secondary school curricula. Drawing on research evidence, practical examples and insights from the EIPC network and a wide range of OECD and EU education systems, it offers six options for consideration by education policy makers on how to strengthen HEIs’ role in supporting effective curriculum development in schools.

Ireland is home to a vibrant social enterprise community, active in essential sectors such as health, care, and education, as well as local development and cultural and creative sectors. This report provides an in-depth analysis of social entrepreneurship and social enterprises in Ireland. It identifies the country’s strengths and challenges and provides policy recommendations. An action plan with concrete and actionable measures is also provided to support Ireland in the development of its new national social enterprise policy. Following an overview of the socio-economic landscape (Chapter 1), the report describes factors underpinning social entrepreneurship, social enterprises and the social economy in the context of Ireland (Chapter 2); analyses the institutional and legal framework around social enterprises (Chapter 3); explores conditions and opportunities for access to finance and funding (Chapter 4); navigates developments in access to public and private markets for social enterprises (Chapter 5); looks at the existing state of social impact measurement and data availability on social enterprises (Chapter 6) and concludes with skills and business development for social entrepreneurship (Chapter 7).