Publications

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.

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.

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.

In 2024, education and training systems have a ‘unique potential’ to build the foundations of equitable, sustainable societies. In the OECD National Survey for Comparative Policy Analysis 2023: Empowering Learners to go Green, 90% of participating systems identified environmental sustainability as a key priority for 2024. There is no trade-off between addressing the biggest challenge facing people and the planet and responding to other external shocks and long-term evolutions, especially since these will only become increasingly interdependent. This implies empowering lifelong learners, institutions and education systems with the agency required to act, today. Building on the OECD’s Framework of Responsiveness and Resilience in Education Policy, survey responses from 36 education systems and international policy analysis, this report explores how education systems can: 1) translate learners’ awareness into environmental action; 2) provide learners with experiences to shape the green economy; and 3) position education as a strategic sector for the green transition. By exploring these areas, the report aims to support countries to follow up on the goals established by the 2022 OECD Declaration on Building Equitable Societies Through Education. The report is part of the Education Policy Outlook series—the OECD’s analytical observatory of education policy.

The COVID-19 pandemic had a severe impact on the Umbrian economy, and despite recovery of labour demand, the region faces challenges related to digitalisation, tight labour markets, and volatile demand for low-skilled jobs. To address these issues, the OECD and the Umbrian regional agency for active labour market policies (ARPAL) have collaborated to investigate the labour and skills demand of the region using big data techniques applied to online job postings. This report provides new insights into the alignment between labour and skills demand and the training options available in the training and education programmes contained in the Umbrian Regional Training Catalogue. This report builds new indicators to measure the alignment of course content with employer demands in Umbria, with results showing that alignment is relatively good for some occupations but that this can be strengthened to provide job seekers with up-to-date training options that match the demand of the labour market.

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.

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 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.

Regional development is rooted in place-based strategic planning and strengthened regional innovation systems. In Romania, the eight Regional Development Agencies (RDAs) are responsible for strategic planning for regional development and delivering innovation support services to regional and local actors. They also manage the public investment funds dedicated to these activities. These are challenging tasks. Many RDAs face difficulties in ensuring that regional and sub-regional development objectives and priorities align, expanding the definition of innovation, and activating their regional innovation ecosystem. Equally difficult is keeping stakeholders engaged and committed to the regional development and innovation agendas. This report synthesises the regional development and innovation challenges facing Romania’s RDAs and potential activities to overcome these in three areas – strategic planning and performance measurement, finance and implementation, and communication and stakeholder engagement. It also offers insights and recommendations for higher-levels bodies to further support RDAs through guidance, facilitating peer-exchange, and actively engaging the RDAs in regional development decision making.

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.