Social and welfare issues


OECD Reviews of Labour Market and Social Policies: Lithuania

Lithuania has undergone major economic and social change since the early 1990s. Despite an exceptionally deep recession following the global financial crisis, impressive economic growth over the past two decades has narrowed income and productivity gaps relative to comparable countries in the OECD. But Lithuania faces a massive demographic challenge, mostly as a result of large and persistent emigration driven primarily by low wages and poor working conditions. Income inequality is also very high, and households at the bottom of the income distribution have recently benefited very little from the recovery. Major reforms of the labour code, the unemployment insurance system, employment policies and pensions were recently undertaken within the New Social Model to improve labour maket adaptibility and income security. This report provides comprehensive analysis of Lithuania’s policies and practices compared with best practice in the field of labour, social and migration from the OECD countries. It contains several recommendations to tackle key challenges facing Lithuania. This report will be of interest in Lithuania as well as other countries looking to promote a more inclusive economy.

Published on March 01, 2018

In series:OECD Reviews of Labour Market and Social Policiesview more titles


Acronyms and abbreviations
Executive summary
Assessment and recommendations
Non-inclusive growth increases the emigration challenge in Lithuania
High outmigration raises challenges for Lithuania
Towards a more inclusive labour market in Lithuania
A flexible labour market needs strong social protection in Lithuania
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