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Moving beyond the jobs crisis. PDF

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2 0 1 0 OECD Employment Outlook OECD MOVING BEYOND THE JOBS CRISIS Employment Moving Beyond the Jobs Crisis Why did unemployment rise so much more sharply in some countries than in others that were also hit hard by the global recession? Have governments taken effective measures to help workers weather Outlook the storm? What are the prospects for a job-rich recovery? The Global Crisis in Emerging Economies: The Jobs Impact and Policy Response How has the recent crisis affected emerging economies and their labour market outcomes? What is MOVING BEYOND THE JOBS CRISIS the role of employment and social policies to support the incomes of those in need? How can existing safety nets be best used to address increasing needs and what are the challenges they face? Institutional and Policy Determinants of Labour Market Flows What determines cross-country differences in hiring and separation rates? Can policies enhance growth by removing barriers to labour reallocation across industries, firms and jobs? What are the effects of different policies on the likelihood and cost of losing a job? And what is their impact on wage premia and losses associated with different types of labour market transitions? How Good is Part-time Work? How do part-time jobs compare to full-time jobs in terms of pay, advancement, job security, O working-time conditions and stress? Is part-time work the way to increase labour supply in E C ageing OECD societies? What barriers prevent part-timers from moving into full-time jobs? D E m p lo y m www.oecd.org/els/employment/outlook e n t O u t lo o k M O V IN G B E Y O N D T H E The full text of this book is available on line via these links: J O www.sourceoecd.org/employment/9789264084681 B S www.sourceoecd.org/socialissues/9789264084681 C R Those with access to all OECD books on line should use this link: IS IS www.sourceoecd.org/9789264084681 SourceOECD is the OECD online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials ask your librarian, or write to us at [email protected]. 2010 ISBN 978-92-64-08468-1 -:HSTCQE=U]Y[]V: 81 2010 08 1 P 2010 www.oecd.org/publishing OECD Employment Outlook 2010 MOVING BEYOND THE JOBS CRISIS The OECD Employment Outlook Provides an annual assessment of labour market developments and prospects in member countries. Each issue contains an overall analysis of the latest labour market trends and short- term forecasts, and examines key labour market developments. Reference statistics are also included. This year’s edition of the OECD Employment Outlook is the joint work of staff of the Directorate for Employment, Labour and Social Affairs. It has benefited from contributions from national government delegates. It is published on the responsibility of the Secretary-General of the OECD. This report is based on draft contributions from David Haugh, Alexander Hijzen, Paul Swaim and Danielle Venn (Chapter1); Alexander Hijzen, Ann Vourc’h and Theodora Xenogiani (Chapter2); Andrea Bassanini and Pascal Marianna (Chapter3); and Anne Saint-Martin and Danielle Venn (Chapter4). Stefano Scarpetta edited the report. The assessments of countries’ labour market prospects do not necessarily correspond to those of the national authorities concerned. ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where governments work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. ISBN 978-92-64-08468-1 (print) ISBN 978-92-64-08614-2 (PDF) Also available in French: Perspectives de l’emploi de l’OCDE 2010: Sortir de la crise de l’emploi Photo credits: Cover illustration © Glowimages/Getty Images. Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2010 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. TABLE OF CONTENTS Table of Contents Editorial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Chapter 1. Moving Beyond the Jobs Crisis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Main findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1.Overview of the labour market impact of the recession . . . . . . . . . . . . . . . . . . . . . 19 1.1.How bad has it been?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1.2.How bad has this crisis been according to less conventional measures of labour market slack?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 1.3.Why has the impact been so uneven across OECD countries? . . . . . . . . . . . . 28 2.Comparisons of labour demand adjustment across countries, recessions and types of firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 2.1.Most OECD economies have suffered large negative shocks with highly variable impacts on employment, unemployment and labour productivity. . . 33 2.2.The choice between employment and hours adjustment underlies many of these patterns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 2.3.Implications for total labour input adjustment and wages. . . . . . . . . . . . . . . 40 3.The policy response to the jobs crisis in OECD countries: an update . . . . . . . . . . 46 3.1.The policy stance in2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3.2.Measures to stimulate labour demand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 3.3.Re-employment measures and training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 3.4.Income support for job losers and low-income earners. . . . . . . . . . . . . . . . . . 55 4.The role of short-time work schemes in limiting job losses during the 2008-09recession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 4.1.Overview of short-time work schemes in OECD countries and previous evidence on their effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . 57 4.2.New OECD evidence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 5.What can be done to minimise the persistence of high labour market slack? . . 75 5.1.Promoting a job-rich recovery: what role for job subsidies? . . . . . . . . . . . . . . 77 5.2.Reducing unemployment and labour force withdrawal hysteresis . . . . . . . . 82 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Annex 1.A1.The institutional features of short-time work schemes in place during the recession in OECD countries. . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Chapter 2. The Global Crisis in Emerging Economies: The Jobs Impact and Policy Response. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Main findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 OECD EMPLOYMENT OUTLOOK 2010 – MOVING BEYOND THE JOBS CRISIS © OECD 2010 3 TABLE OF CONTENTS 1.The economic and social impact of the global financial crisis. . . . . . . . . . . . . . . . 107 1.1.The economic crisis in emerging economies. . . . . . . . . . . . . . . . . . . . . . . . . . . 107 1.2.The impact of the crisis on labour markets in emerging economies. . . . . . . 112 2.The impact of previous crisis episodes on labour markets and demographic groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 2.1.How did past crisis episodes affect aggregate labour market outcomes? . . . 121 2.2.Which groups were most vulnerable and which groups most affected during previous crises? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 2.3.The implications of past crisis episodes for the crisis of2008-09. . . . . . . . . . 126 3.Labour market and social policies at times of crisis . . . . . . . . . . . . . . . . . . . . . . . . 129 3.1.Ageneral overview of social protection in emerging economies . . . . . . . . . . 130 3.2.Unemployment compensation schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 3.3.Cash transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 3.4.Public works programmes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Chapter 3. Institutional and Policy Determinants of Labour Market Flows . . . . . . . . . . 167 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Main findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 1.Cross-country differences in labour reallocation. . . . . . . . . . . . . . . . . . . . . . . . . . . 170 2.What role for labour market policies and regulations?. . . . . . . . . . . . . . . . . . . . . . 178 2.1.Employment protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 2.2.Unemployment benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 2.3.Minimum wages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 2.4.Anti-competitive product market regulation. . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 Annex 3.A1. Data Construction and Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Chapter 4. How Good is Part-Time Work? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Main findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 1.Part-time work: recent developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 1.1.Part-time work has further increased over the past decade and is predominantly voluntary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 1.2.New regulations for part-time work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 2.Are part-time jobs worse than full-time jobs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 2.1.Job quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 2.2.Do part-time workers face economic hardship?. . . . . . . . . . . . . . . . . . . . . . . . 231 3.Can part-time work help mobilise under-represented groups in the labour market? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 3.1.How is part-time employment related to full-time employment and inactivity? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 3.2.Acloser look at transitions from part-time employment . . . . . . . . . . . . . . . . 242 Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 4 OECD EMPLOYMENT OUTLOOK 2010 – MOVING BEYOND THE JOBS CRISIS © OECD 2010 TABLE OF CONTENTS Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 Annex 4.A1. Job Quality Decomposition Methodology and Results . . . . . . . . . . . . . . 257 Annex 4.A2. Supplementary Figures and Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 Statistical Annex. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 Figures 1.1.Comparing unemployment rate trajectories during this and previous recessions. . 20 1.2.The unemployment impact has differed greatly across countries . . . . . . . . . . . . 21 1.3.Some workforce groups have been hit especially hard, while women, older and high-skilled workers have fared better. . . . . . . . . . . . . . . . . . . . . . . . . . . 22 1.4.Some industries have been hit harder than others, largely in keeping with historical patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 1.5.The increase in unemployment was accompanied by growth of other forms of unemployment and underemployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 1.6.Hours worked fell for those who remained employed in almost all countries . . 28 1.7.The unemployment impact of the recession has been surprisingly uneven across countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 1.8.Recent unemployment developments reflect diverse impacts of the recession on real GDP, employment and participation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 1.9.Change in output in the 2008-09recession in historical comparison: adeep recession in most countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 1.10.Change in unemployment in the 2008-09recession in historical comparison: an unusually large increase in some countries, but a muted impact in others . . . 35 1.11.Change in labour productivity in the 2008-09recession in historical comparison: unusually steep declines in many countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 1.12.Labour productivity growth and contribution of hours worked to overall labour adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 1.13.The share of hours worked in total labour input adjustment tends to fall over the course of a recession. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 1.14.Response of labour input to GDP from peak to trough in historical comparison: high variability across countries and recessions . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 1.15.Changes in unemployment, real wages and productivity relative to trend during the 2008-09recession. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 1.16.Anticipated change in resources devoted to labour market policy, 2010compared with2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 1.17.Reductions in employer social security contributions for continuing and new workers in selected countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 1.18.Reductions in employer social security contributions for new hires in selected countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 1.19.Annual average stock of employees participating in short-time work schemes as percentage of all employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 1.20.Percentage change in PES workload, staffing and outcomes, 2007-09. . . . . . . . . . 53 1.21.Growth in unemployment benefit recipients and unemployment . . . . . . . . . . . . 55 1.22.Did short-time work schemes affect labour market adjustment during the 2008-09recession? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 OECD EMPLOYMENT OUTLOOK 2010 – MOVING BEYOND THE JOBS CRISIS © OECD 2010 5 TABLE OF CONTENTS 1.23.Short-time work schemes reduced the output sensitivity of employment, but increased that of average hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 1.24.Short-time work schemes helped to preserve permanent jobs in the 2008-09recession. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 1.25.Changes in unemployment inflows and outflows during the downturn and early recovery in OECD countries, 2007Q4-2009Q4. . . . . . . . . . . . . . . . . . . . . 79 2.1.All countries have been affected to some extent by the global crisis of2008-09 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 2.2.Impact of the global financial crisis on exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 2.3.Impact of the global financial crisis on foreign direct investment and remittances inflows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 2.4.GDP per capita is much lower in emerging economies than in the OECD area . . . 112 2.5.Absolute poverty rates are high in some emerging economies . . . . . . . . . . . . . . . 113 2.6.Informal employment is widespread in most emerging economies. . . . . . . . . . . 115 2.7.Impact of the growth slowdown on employment and unemployment. . . . . . . . . 117 2.8.Adjusting the wage bill to the economic slowdown. . . . . . . . . . . . . . . . . . . . . . . . . 119 2.9.Cyclical changes in consumption during the crisis . . . . . . . . . . . . . . . . . . . . . . . . . 120 2.10.The Indonesian and Mexican 1990scrises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 2.11.Labour market performance across different population groups . . . . . . . . . . . . . 124 2.12.Simulated aggregate impact of the crisis of2008-09 on formal employment in historical perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 2.13.Simulated impact of the crisis of2008-09 on formal employment by population group in historical perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 2.14.Public social expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 2.15.Unemployment insurance in crisis times in Brazil, Chile and Russia. . . . . . . . . . 140 2.16.Targeting errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 3.1.Gross worker reallocation rates in OECD countries, 2000-07 . . . . . . . . . . . . . . . . . 171 3.2.Job-to-job, jobless-to-job and job-to-jobless flows, 2000-07 . . . . . . . . . . . . . . . . . . 175 3.3.Dismissal rates in selected countries, 1995-2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 3.4.Average wage premia to job change, 1995-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 3.5.Impact of regulation for individual and collective dismissals, controlling for the share of temporary workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 3.6.Regulation for individual and collective dismissals, share of temporary workers and overall impact on worker reallocation. . . . . . . . . . . . . . . . . . . . . . . . . 186 3.7.Impact of selected EP components on gross worker reallocation . . . . . . . . . . . . . 187 3.8.Impact of regulation for individual and collective dismissals on worker reallocation, by type of transition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 3.9.Unemployment benefit generosity and gross worker flows. . . . . . . . . . . . . . . . . . 192 3.10.Impact of unemployment benefit generosity on worker reallocation, by group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 3.11.Impact of unemployment-benefit generosity on worker reallocation, by type of transition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 3.12.Anti-competitive product market regulation and gross worker flows . . . . . . . . . 199 4.1.Part-time employment in OECD countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 4.2.Rights to work part-time and the spread of part-time work. . . . . . . . . . . . . . . . . . 219 4.3.Earnings potential, representation and job security, ratio of part-time to full-time employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222 6 OECD EMPLOYMENT OUTLOOK 2010 – MOVING BEYOND THE JOBS CRISIS © OECD 2010 TABLE OF CONTENTS 4.4.Explaining the part-time penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 4.5.Working-time arrangements and health, ratio of part-time to full-time employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 4.6.Explaining the part-time premium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228 4.7.Unexplained job quality gap by level of part-time employment . . . . . . . . . . . . . . 230 4.8.Unexplained gap in likelihood of being satisfied with job (part-time minus full-time) after controlling for individual and job characteristics . . . . . . . . . . . . . 230 4.9.Part-time work and in-work poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 4.10.In-work poverty among part-timers and household composition. . . . . . . . . . . . . 233 4.11.In-work poverty among part-timers and employment intensity. . . . . . . . . . . . . . 234 4.12.Population shares in part-time jobs, full-time jobs and inactivity: is there a link? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 4.13.Reasons for working part-time or being inactive . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 4.14.Women’s part-time work over the life cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 4.15.Is part-time work a transitory labour market state? . . . . . . . . . . . . . . . . . . . . . . . . 243 4.16.Where do workers go when exiting part-time employment?. . . . . . . . . . . . . . . . . 244 4.17.Which workers are most likely to move out of part-time employment? . . . . . . . 245 4.18.Transition patterns among part-time workers by poverty status . . . . . . . . . . . . . 246 4.19.Marginal effective tax rate for low-wage workers moving from part-time to full-time employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 4.20.An estimation of the impact of the tax and benefit system on transitions from part-time work to full-time employment or non-employment . . . . . . . . . . . . . . . 249 4.A2.1.Part-time employment by demographic group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 4.A2.2.Work intensity of part-timers and incidence of voluntary and involuntary part-time employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 Tables 1.1.How many jobs are needed to restore pre-crisis employment rates? . . . . . . . . . . 25 1.2.Cross-country differences in the impact of the recession on real GDP are only one of the factors determining how sharply unemployment rose. . . . . 32 1.3.Relative policy stance by labour market and government budget situation, 2010compared with2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 1.4.The impact of short-time work schemes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 1.5.Potential vulnerability to an increase in structural unemployment varies by country. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 1.6.Estimated impacts of recessions on participation rates . . . . . . . . . . . . . . . . . . . . . 85 2.1.Fiscal policy during the global financial crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 2.2.Recent trends in labour market outcomes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 2.3.How sensitive to the business cycle are the labour market outcomes of different groups?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 2.4.Existing programmes, new programmes and reforms. . . . . . . . . . . . . . . . . . . . . . . 135 2.5.Unemployment compensation schemes: contribution requirements, benefits and coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 2.6.Relative generosity of unemployment benefit schemes before the crisis. . . . . . . 138 2.7.Main (non-pension) cash transfer programmes. . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 2.8.Main features of public works programmes (PWPs). . . . . . . . . . . . . . . . . . . . . . . . . 149 3.1.Estimated wage premia to job change, 1995-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . 174 4.1.Statutory rights for part-time work and part-time workers. . . . . . . . . . . . . . . . . . 218 OECD EMPLOYMENT OUTLOOK 2010 – MOVING BEYOND THE JOBS CRISIS © OECD 2010 7 TABLE OF CONTENTS 4.2.Unemployment benefit coverage for part-time workers. . . . . . . . . . . . . . . . . . . . . 235 4.3.Relationship between part-time, full-time employment and inactivity among under-represented groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 4.4.Eligibility for employment services for underemployed workers who are registered job seekers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 4.A1.1.Explaining the part-time premium, detailed results . . . . . . . . . . . . . . . . . . . . . . . . 261 4.A1.2.Explaining the part-time penalty, detailed results. . . . . . . . . . . . . . . . . . . . . . . . . . 262 4.A2.1.Determinants of transition probabilities of moving from part-time work to either full-time employment or non-employment over any two-year period between2004 and2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 A.Harmonised unemployment rates in OECD countries. . . . . . . . . . . . . . . . . . . . . . . 270 B.Employment/population ratios, activity and unemployment rates. . . . . . . . . . . . 271 C.Employment/population ratios, activity and unemployment rates by selected age groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 D.Employment/population ratios, activity and unemployment rates by educational attainment, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 E.Incidence and composition of part-time employment . . . . . . . . . . . . . . . . . . . . . . 286 F.Incidence of temporary employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 G.Average annual hours actually worked per person in employment . . . . . . . . . . . 290 H.Incidence of long-term unemployment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 I.Earnings dispersion, gender wage gap and incidence of low pay . . . . . . . . . . . . . 295 J.Average annual wages in the total economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 K.Public expenditure and participant stocks in labour market programmes in OECD countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 This book has... StatLinks2 A service that delivers Excel® files from the printed page! Look for the StatLinks at the bottom right-hand corner of the tables or graphs in this book. To download the matching Excel® spreadsheet, just type the link into your Internet browser, starting with the http://dx.doi.org prefix. If you’re reading the PDF e-book edition, and your PC is connected to the Internet, simply click on the link. You’ll find StatLinks appearing in more OECD books. 8 OECD EMPLOYMENT OUTLOOK 2010 – MOVING BEYOND THE JOBS CRISIS © OECD 2010

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