Finance is a vital ingredient of economic growth, but there can be too much of it. Over the past 50 years, credit by banks and other institutions to households and businesses has grown three times as fast as economic activity. At these levels, further expansion is likely to slow long-term growth and raise inequality.
The slowdown in productivity growth over the past decade underscores the idea that as economies converge toward the global technological frontier, the ability to capitalise on new innovations developed at frontier becomes more important.
The latest NERO/OECD meeting took place on 22 June 2015. NERO is a network of National Economic Research Organisations which exchanges information, discusses evolving research agendas and identifies new issues. The OECD acts as a facilitator in this process, and hosts meetings of NERO representatives.
This paper first decomposes labour productivity growth over 2000-11 into a within-industry, a shift and a cross effect in a number of countries and compares China with other countries over this period. This shift-share analysis also allows a comparison of within-sector productivity gains across a large number of sectors and countries.
Regional inequality in Slovakia is among the highest in the OECD and is increasing. The main reason for regional disparity is the combination of low economic growth and job creation in the eastern and central part of the country and insufficient labour mobility to the west, in particular by low-skilled workers.
This paper shows that household-level economic instability is only very loosely related to macroeconomic volatility. However, the analysis also uncovers that moving to highly competitive policies generally reduces micro-level instability.
English, PDF, 514kb
This article explores country-by-country differences in academic performance and attitudes towards school between students who repeated a grade in primary school, in secondary school or never repeated a grade. The analyses use PISA 2009 for 30 countries in which a relatively high proportion of students repeated a grade before the age of 15.
English, PDF, 418kb
The purpose of this paper is to examine the welfare effects of birth-related leave (BRL) in terms of life satisfaction. To do so, we exploit variations in BRL policies to assess their impact on life satisfaction.
English, PDF, 334kb
Emissions trading systems (ETS) can play a major role in a cost-effective climate policy framework. Both direct linking of ETSs and indirect linking through a common crediting mechanism can reduce costs of action. We use a global recursive-dynamic computable general equilibrium model to assess the effects of direct and indirect linking of ETS systems across world regions.
English, PDF, 510kb
This article assesses various underlying driving factors for the evolution of household earnings inequality for 23 OECD countries from the mid-1980s to the mid-2000s.