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Climate change mitigation policies affect the allocation of workers on the labor market: jobs in high-polluting industries will contract, while jobs in the “green” sector will grow. A just transition in the labour market requires policies to improve the allocation of workers and their deployability, for instance towards performing green tasks; as well as to manage and minimise scarring effects associated with job losses in polluting industries. Using an econometric analysis, this paper investigates the role of structural and policy factors in shaping a number of relevant labour market transitions, uncovering heterogeneity across different groups of workers. Education is the most important individual-level driver of transitions from non-employment to green jobs, with a particularly strong effect from graduating in scientific fields for young people entering the labour market. Women are significantly less likely than men to move into green jobs out of non-employment. Workers employed in high-polluting occupations face higher displacement risks than other workers, but this does not translate into higher long-term unemployment risks. In terms of policies, the paper finds that the labour market implications of the greening economy can be addressed by general structural policies favouring labour market efficiency in terms of workers’ reallocation, labour market inclusiveness in terms of promoting equality of opportunities and minimising long-term scars. Results also suggest that place-based policies are needed to mitigate scarring effects for displaced workers.
Labour share developments over the past two decades have differed widely across OECD countries, with about half of them experiencing significant declines. This paper analyses the role of public policies in shaping labour share developments across countries. The results suggest that pro-competition product market reforms raise the labour share by reducing producer rents. Labour market reforms that strengthen the bargaining position of workers, such as tightening employment protection or raising minimum wages, may raise wages in the short term but risk triggering the substitution of capital for labour in the medium term. On average, across countries, such reforms are estimated to reduce the labour share. By contrast, promoting the re-employment of workers who lose their jobs through active labour market policies unambiguously raises the labour share.
Over the past two decades, real median wage growth in many OECD countries has decoupled from labour productivity growth, partly reflecting declines in labour income shares. This paper analyses the drivers of labour share developments using a combination of industry- and firm-level data. Technological change in the investment goods-producing sector and greater global value chain participation have compressed labour shares, but the effect of technological change has been significantly less pronounced for high-skilled workers. Countries with falling labour shares have witnessed both a decline at the technological frontier and a reallocation of market shares toward “superstar” firms with low labour shares (“winner-takes-most” dynamics). The decline at the technological frontier mainly reflects the entry of firms with low labour shares into the frontier rather than a decline of labour shares in incumbent frontier firms, suggesting that thus far this process is mainly explained by technological dynamism rather than anti-competitive forces.
A decomposition of changes to participation rates of 55-to-74 year-olds between 2002 and 2017 based on an estimated equation attributes more than two thirds of the median increase (of 10.9 percentage points) to rising life expectancy and educational attainment. About 1 percentage point is attributable to changes in statutory retirement ages, although part of the reason these effects are not larger is that in most countries, statutory retirement ages have not kept pace with life expectancy. Although difficult to incorporate in the empirical framework, evidence of falling disability pension rolls and reduced sensitivity of old-age participation to the level of unemployment suggests that the tightening of alternative early retirement pathways through unemployment or disability schemes has been a major factor in the turnaround in the participation rate of older workers. Projections indicate that participation rates for 55-to-74 year-olds should keep rising through 2030, by 3.4 percentage points for the median country. Rising life expectancy and educational attainment are projected to make the largest contributions, more than compensating for the negative contribution of population ageing in most countries.
This paper exploits natural language processing techniques to detect explicit labour-saving goals in inventive efforts in robotics and assess their relevance for different occupational profiles and the impact on employment levels. The analysis relies on patents published by the European Patent Office between 1978 and 2019 and firm-level data from ORBIS® IP. It investigates innovative actors engaged in labour-saving technologies and their economic environment (identity, location, industry), and identifies technological fields and associated occupations which are particularly exposed to them. Labour-saving patents are concentrated in Japan, the United States, and Italy, and seem to affect low-skilled and blue-collar jobs, along with highly cognitive and specialised professions. A preliminary analysis does not find an appreciable negative effect on employment shares in OECD countries over the past decade, but further research to econometrically investigate the relationship between labour-saving technological developments and employment would be helpful.
This paper provides new evidence on the main characteristics of laggard firms - firms in the bottom 40% of the productivity distribution - and their potential for productivity growth. It finds that laggards are on average younger and smaller than more productive firms, and matter for aggregate resource reallocation. Moreover, younger laggards converge faster toward the productivity frontier, suggesting that the composition of the laggard group matters for future productivity. Yet this report finds that laggards converge at a slower rate in highly digital- and skill-intensive industries, suggesting that there are barriers to technology and knowledge diffusion. This could help explain the much-debated productivity slowdown and the increased productivity dispersion. This report also finds that policies aimed at improving workers’ skills, alleviating financial constraints to investments and increasing firms' absorptive capacity through direct R&D support can accelerate the diffusion of knowledge and technology, and help laggard firms to catch up.
Changes in the biophysical characteristics of natural habitats – that can be measured with data on land cover – are the best proxy to monitor pressures on ecosystems and biodiversity. This paper presents a suite of indicators that track land cover change over time in a globally consistent manner. The indicators, including an OECD Green Growth headline indicator, represent the Organisation's most recent effort to monitor pressures on ecosystems and biodiversity, using state-of-the-art data and techniques. Results are presented for OECD and G20 countries over 1992-2015 using global multi-period datasets.
The OECD Competition Committee debated competitive effects of land use restrictions in February 2008. Land use restrictions often serve valuable social purposes. The benefits of particular policies for land use must be balanced against the costs, though. The social harms that can arise when land use restrictions create “entry barriers” are rarely considered explicitly. Land use restrictions can raise the price and reduce supply of a broad range of real estate and, by preventing new and innovative stores from opening, reduce shopping options available to consumers. More careful integration of policy on land use restrictions with competition policy could benefit consumers and many entrepreneurs and reduce the likelihood that public or private restrictions will lead to supply scarcity. This roundtable examines competition problems affecting commercial construction and use permits, geographic density tests, adverse impact tests, access condition to rights of ay and private restrictions on land use. Steps are identified for improving public policies towards land use restrictions.
This report assesses the crucial drivers of ecosystem services and proposes actions to
develop a more effective policy mix. Several elements form the basis of this report. First,
a literature review provides an overview of the state and trends of ecosystem services linked
to agriculture, including issues related to land use. Secondly, results are presented from a
quantitative model developed to illustrate the potential benefits of improving policy design
as well as to investigate synergies and trade-offs among ecosystem services. This report
also includes a review of experiences in an inventory of ecosystems in selected countries
and policy initiatives that address ecosystem services linked to agriculture.
Land dynamics are context specific and rapidly changing, and conflicts related to them do not systematically escalate into violence. One way of framing the discussion is to consider change in the structures of power governing the management of resources in rural areas as necessary to achieve greater efficiency and equity. Since such change will be opposed by beneficiaries of the system in place, the transformation of agriculture is bound to be marred by conflicts of various intensity levels. At the heart of these conflicts lies land because of its very high material and symbolic values. Evidence shows that (a) whether they result from pre-existing agrarian tensions or not, conflict situations in rural societies deeply affect the politics of land, and (b) whether it is at the heart of a conflict or gets dragged into it, land requires a careful approach by policy makers because it is a central element in the evolution of societies. As a result, policies pertaining to land can ...
Latin America's insertion in the world trade system is entering a period of historical change. Driving that change will be the outcome, or failure, of the Uruguay Round of multilateral trade negotiations; the increasing regionalisation of trade relations; and the profound liberalisation in Latin America of national trade regimes, which is also leading to a strong revival in the region of sub-regional integration schemes. The interaction between changes in the region's trade regimes and changes in the global determinants of foreign direct investment in manufacturing are affecting the locational advantages of Latin America as a recipient of direct investment flows as well.
The effects on Latin America of regionalisation in Europe and in the Western Hemisphere are, overall, benign. "EC 1992" is likely to have a positive net impact on Latin America's exports unless dramatic, and unlikely, discriminatory measures against third parties are introduced in conjunction with the creation of the ...
These guidelines seek to strengthen the capacities of law enforcement practitioners to combat corruption related to the COVID-19 pandemic and other emergency situations. In particular, they aim to: (i) provide law enforcement practitioners with practical advice on the challenges law enforcement faces in an emergency crisis; (ii) illustrate good detection, investigation and prosecution practices during emergency situations and identify key challenges that may arise in future crises, including through international cooperation mechanisms; (iii) inform law enforcement practitioners about the benefits of emerging technologies and innovative institutional developments identified during COVID-19 that can assist with combating corruption.