1 / 18

How do Asia/Pacific countries compare?

How do Asia/Pacific countries compare?. Raymond Torres, OECD. Asia/Pacific countries do relatively well. Ageing is a common challenge to all. Asia/Pacific economies grow fast (except Japan). Key issue in the JS reassessment: are w elfare benefits and regulations bad for jobs?.

lisandra-lopez
Download Presentation

How do Asia/Pacific countries compare?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How do Asia/Pacific countries compare? Raymond Torres, OECD

  2. Asia/Pacific countries do relatively well

  3. Ageing is a common challenge to all

  4. Asia/Pacific economies grow fast (except Japan)

  5. Key issue in the JS reassessment: are welfare benefits and regulations bad for jobs? • Welfare benefits may inhibit work incentives • Labour regulations (minimum wages, dismissal regulations, etc.) may: • make employers reluctant to hire (lower labour demand); and • slow down allocation of resources (lower labour productivity

  6. Point 1: If well designed, welfare benefits may promote labour supply The “mutual obligations” approach • Governments offer good re-employment services, financial incentives to work, non-financial services like child-care – the “rights” • Beneficiaries should take active steps to find work – the “obligations” • This may require a minimum wage set at right level = > This can be very effective to bring disadvantaged groups into employment

  7. Asia/Pacific spending on ALMP is less than average

  8. Point 2: Employment regulations can be made consistent with employment • Overly rigid dismissal regulations can be big problem • It can inhibit job creation, • Contribute to labour market duality and • Reduce mobility • But some degree of regulation can help • This will force firms to internalise cost of dismissal decisions: see Austrian reform, experience rating in the US • Helps find better job match (productivity) => Wage flexibility and/or training needed

  9. Union density and collective bargaining coverage in Asia-Pacific are low (except Australia)

  10. Big shift away from low-educated employment…

  11. Training reduces the risk of unemployment

  12. Pros and cons of different strategies • First option: not doing anything… • “deregulation” approach (low benefits, low EPL) : • enhances work incentives and labour demand • cheap for public purse • But not enough in certain cases (lone parents) ... • ... And does not help improve career prospects and may lead to labour market insecurity

  13. Flexicurity (adequate benefits, strong activation, low EPL) - anglo-saxon countries moving in this direction? • Promotes participation • Reduces demand-side barriers • But it is costly and complex vis-à-vis deregulation… • … And it implies workers accepting low EPL => Ok if evaluation in place, social consensus and training providing by government

  14. Internal flexibility (high EPL for regular workers, wage flexibility, firm-training) • Promotes adjustment within firms through wage flexibility (Japan, Korea -- Mexico?) • Maintains employment security • But at the cost of duality (rising incidence of non-regular jobs) … => Requires innovative ways to provide EPL

  15. Thank you

More Related