Research & Policy Work

Men and women tend to hold different jobs. Are these differences present already in the types of jobs men and women apply for? Using administrative data on job applications made by the universe of Danish unemployment insurance recipients, we provide evidence on gender differences in applied-for jobs for the broader labor market. Across a range of job characteristics, we find large gender gaps in the share of applications going to different job types even among observationally similar men and women. In a standard decomposition, gender differences in applications can explain more than 70 percent of the residual gender wage gap.

Using data on applied-for jobs for the universe of Danish UI recipients, we examine variation in job search behavior both across individuals and over time during unemployment spells. We find large differences in the level of applied-for wages across individuals but over time all individuals adjust wages downward in the same way. The decline in applied-for wages over time is descriptively small but economically important in standard models of job search. We find similar results when examining variation in the non-wage characteristics of applied-for jobs and in the search methods used to find them. We discuss implications for theory. 

Die familienpolitische Debatte hat sich in den OECD-Ländern über die vergangenen Jahrzehnte stark verändert. Der demografische Wandel mit alternden Bevölkerungen und einem Rückgang der Geburtenraten ist dabei ein wichtiger Faktor, genauso wie die Bestrebungen, Frauen stärker in den Arbeitsmarkt zu integrieren, die Partnerschaftlichkeit in unbezahlter Arbeit zu fördern, allgemein gleichstellungspolitische Ziele zu verfolgen, sowie Kinder- und Familienarmut zu bekämpfen. Welche politischen Maßnahmen haben die OECD-Länder ergriffen, und wie sehen die Ergebnisse aus? Wie sehen die jüngsten Entwicklungen in Deutschland im Vergleich dazu aus?

This study investigates factors favouring a possible « smicardisation » of French workers - the process of an increasing coverage of workers at the minimum wage. First, the minimum wage is relatively high in France compared with other countries, with the result that a large number of workers are close to it. Second, low wages reflect less the characteristics of firms or sectors than the low skills of workers, the resolution of which requires appropriate education and training policies, effective over the long-term. Finally, an analysis of tax and benefit systems highlights the existence of potential low wage traps mechanisms, which are particularly significant in France compared to other countries. Nevertheless, analysis of individual trajectories shows that it is no more difficult for low-wage workers to climb the wage ladder in France than in the other selected countries.

This paper provides a comprehensive analysis of the costs of job displacement in energy-intensive industries in selected OECD countries. Based on harmonised linked employer-employee data from 14 OECD countries, we estimate the effect of job displacement in three energy-intensive industries, namely energy supply, heavy manufacturing and transport, compared to other industries. We find that workers displaced from the energy supply and heavy manufacturing, experience larger earnings losses compared with workers in non-energy-intensive and transport sectors. Larger earnings losses mainly result from weaker re-employment outcomes in terms of wages and job instability but also challenges with finding another job. They reflect significant differences in the composition of workers and firms in energy supply and heavy manufacturing and the rest of the economy. Displaced workers in these sectors tend to be older, are less skilled and more likely to be previously employed in high-wage firms.

Despite women’s increased participation in the labour market significantly contributing to past economic growth, persistent gender gaps across OECD labour markets hinder full realization of women's productive potential. This paper analyses the economic implications of these gaps and evaluates the potential for future growth through greater gender equality in labour market outcomes. Utilising two methodological frameworks, we first employ growth accounting to measure the contribution of women's employment to past economic growth. We then use a simplified version of the OECD Long-Term Model in conjunction with projections on future labour force dynamics to estimate the impact of greater gender equality on the labour market. These analyses provide insight into the potentially significant economic benefits of closing persistent gender gaps across OECD countries.

This paper analyses the association of labour market outcomes and family policies with fertility trends between 2002 and 2019 in 26 OECD countries. While the average age of mothers at birth of their children continued to increase over the entire period, these years have been marked by an initial catching-up of total fertility rates after marked declines in previous decades. Furthermore, after peaking in 2008, total fertility rates declined substantially, fueling concerns about demographic, economic and fiscal implications. Using panel data models and building on prior work, this paper links these changes in fertility outcomes to changes in the labour market position of men and women as well as with changes in family policies, such as parental leaves and early childhood education and care. This paper provides insights into the complex dynamics between family policies, employment and fertility, shedding light on the factors influencing overall population dynamics in OECD countries.

Productivity growth has slowed across OECD economies, and its benefits have become less equally shared. This chapter focuses on the role of growth-enhancing job reallocation in aggregate wage and productivity growth in the context of population ageing. Using detailed linked employer-employee data from 17 OECD countries, it analyses how different types of worker movements contribute to the reallocation of workers towards firms paying higher wages and with higher productivity. The analysis distinguishes between job-to-job mobility, which often reflects voluntary career moves to better-paying firms, and employment flows in and out of work. Particular attention is put on how workforce ageing may affect these dynamics, given differences in mobility between younger and older workers. The chapter concludes with a discussion of policies that can support growth-enhancing job reallocation by providing sufficient flexibility to firms and promoting upward mobility for workers, especially mid-career and older ones.

The net-zero transition will create new job opportunities in low-emission activities but also increase the risk of job loss in high-emission activities. Concerns about job loss are understandable given the persistent earnings losses associated with displacement. In addition, these concerns risk undermining public support for climate change mitigation policies. Developing effective policies to support displaced workers is therefore not only crucial to alleviate the consequences of job displacement but also to ensure that concerns about job loss do not result in a backlash stalling progress towards net-zero emissions. To inform the development of such policies, this chapter provides an in-depth analysis of the consequences of job displacement in high greenhouse gas (GHG) emission industries using harmonised linked employer-employee data from 14 OECD countries and provides a detailed discussion of policies to support workers who lose their job as a result of the net-zero transition.

This is the first G7 Gender Equality Implementation Report, prepared under the 2023 Japanese G7 Presidency at the request of G7 Leaders and in consultation with G7 members, as part of the G7 Monitoring and Accountability Mechanism (MAM) (Elmau 2022). The report presents good practices and progress made by the G7 in meeting commitments related to gender equality made during G7 Presidencies since 2017. The report aims to inform future G7 decision-making on gender equality. The report provides an overview of efforts to promote family-friendly policies; reduce gender pay gaps and improve women’s leadership in public and private sectors; promote women’s entrepreneurship; and foster women’s participation in Science, Technology, Engineering and Mathematics (STEM). The report also discusses efforts to address gender-based violence, as well as policies targeted at global challenges, including supporting gender equality in conflict and fragile settings.

Like other Nordic countries Norway has been investing heavily in family policy to enable combining work and family life. Nevertheless, between 2009 and 2022 the Total Fertility Rate (TFR) in Norway dropped from 2 children to 1.4 children per woman. What is happening, and why? Can Norwegian parents still reconcile work and family commitments? What role do demographic trends play for the future of the Norwegian society? Should we worry? These are some of the questions that this study addresses. It illustrates various aspects of fertility trends, as well as changes in the Norwegian labour market as well as in Norway’s comprehensive system of public family support. The study also looks at social attitudes and how these might be affecting family formation and fertility trends. The final chapter projects demographic, economic, fiscal and social outcomes under different fertility trend scenarios.

OECD countries continue to face persistent gender inequalities in social and economic life. Young women often reach higher levels of education than young men, but remain under-represented in fields with the most lucrative careers. Women spend more time on unpaid work, face a strong motherhood penalty, encounter barriers to entrepreneurship and fare worse in labour markets overall. They are also under-represented in politics and leadership positions in public employment. These elements permeate many policy areas and economic sectors – from international trade and development assistance to energy and the environment – in which policy often lacks a strong gender focus. Violence against women, the most abhorrent manifestation of gender inequality, remains a global crisis. This publication analyses developments and policies for gender equality, such as gender mainstreaming and budgeting, reforms to increase fathers’ involvement in parental leave and childcare, pay transparency initiatives to tackle gender pay gaps, and systems to address gender-based violence. It extends the perspective on gender equality to include foreign direct investment, nuclear energy and transport. Advancing gender equality is not just a moral imperative; in times of rapidly ageing populations, low fertility and multiple crises, it will strengthen future gender-equal economic growth and social cohesion.

Gender equality is not just about fairness and equity, it is also about economic empowerment and economic growth. Estonia has made great strides towards gender equality. Girls today outperform boys in educational attainment, but they are less likely than boys to study mathematics or information and communication technology. The gender employment gap is small, but Estonian women are still less likely to make it to the top, and career breaks around childbirth contribute to the declining but still considerable gender wage gap. This review considers the gender gaps in labour market outcomes and explores the gap in pay between men and women with equivalent skills within and across firms. It considers family support policies for households with young children, women’s bargaining position in firms, initiatives to combat gender-based discrimination as well as changing gender norms in education. It then explores the potential economic gains of greater gender equality under different scenarios. Indeed, a greater sharing of paid and unpaid work between men and women will lead to economic gains, but it requires changing norms, mindsets, and attitudes. Such changes take time, but policy has a role to play in raising public awareness of gender biases in society and promoting change.

In Hungary, women are much less likely than men to be in paid work. Despite recent policy reforms and employment increases for both men and women since the global financial crisis, the gender employment gap has widened over the past years. It is now at its highest point since the mid-1990s. A major reason for the persistent employment gap in Hungary is that most mothers with very young children take an extended period out of paid work following childbirth - often until the child is two or three years of age. Traditional family attitudes towards gender roles and caring for very young children play a role. In addition, access to and use of childcare services for very young children remains limited despite some improvements, and flexible working arrangements are not widespread. For Hungary, closing the gender employment gap responds to both gender equality and labour market issues. This report analyses recent reforms and explores potential policy actions in the areas of early childhood education and care, parental leave and flexible working arrangements, which could provide women - and especially mothers of very young children - with better access to paid work. 

Despite years of growth in the number of women in paid work, gender roles in unpaid housework have remained remarkably rigid. Unpaid housework can be outsourced to non-care household service providers, such as cleaners or housekeepers, however, high prices, a substantial tax burden and a lack of easy access impose barriers to greater formalisation of the household service sector. With the aim of increasing work-life balance for households, in particular for women in employment, and reducing the wide-ranging practice of undeclared employment, a number of OECD countries have implemented policies to formalise and boost the provision of non-care household services. This report illustrates the importance of the non-care household service sector and reviews international approaches in formalising the non-care household service market, ranging from providing tax incentives or granting social vouchers, to identify good practice. To highlight the potential economic gains that could follow from easing the housework burden, the report also estimates the economic value of unpaid housework provided by men and women.

To design, implement and monitor effective child well-being policies, policy-makers need data that better capture children’s lives, measure what is important to them and detect emerging problems and vulnerabilities early on. Despite improvements in recent decades, there are still important gaps in both national and cross-national child data. Countries can achieve progress if the right actions are taken. Measuring What Matters for Child Well-being and Policies lays the groundwork for improved child well-being measurement and better data to inform better child well-being policies. It outlines an “aspirational” framework for child well-being measurement, setting out which aspects of children’s lives should be measured, and how, to better monitor child well-being. It also outlines priorities for child data development and identifies key data gaps, all with the aim of motivating improvements in child data infrastructures.

Social housing is an important dimension of social welfare policy and affordable housing provision, representing more than 28 million dwellings and about 6% of the total housing stock in OECD and non-OECD EU countries. There are significant differences across countries in the definition, size, scope, target population and type of provider of social housing, yet the relative size of the social housing sector has been shrinking in recent years in all but six countries for which data are available. This is partly due to a decline in public investment in the housing stock. The COVID-19 pandemic has brought to the fore the enduring housing affordability and quality gaps facing many households. Investments in social housing construction and renovation should be a central part of a more sustainable, inclusive economic recovery, reinforced by the EU’s “Renovation wave” announced in early 2020 as part of the European Green Deal.

In this paper I estimate a broad and tractable behavioral job search model that incorporates multiple behavioral biases which have mainly been applied in a one-at-a-time piecemeal approach in the previous literature. I allow for loss aversion induced by reference-dependence, present bias and biased beliefs about the job offer arrival rate. I explicitly allow the agents to learn about their actual job offer probability over time, which erodes their initially biased confidence. My model fits the observed data significantly better than traditional settings and prior behavioral frameworks, even when allowing for unobserved heterogeneity in the pool of unemployed. I use this partial equilibrium framework to evaluate several hypothetical reforms of the Danish unemployment insurance system. This exercise highlights that focusing on a single behavioral feature can lead to biased policy prescriptions. It further suggests that, given the estimated model, a policy change from the status-quo to a multi-step policy or a job search monitoring scheme could have overall beneficial effects as the non-standard preferences and beliefs of unemployed agents are exploited.