NDLI: Overcoming labour market segmentation

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OECD Economic Surveys: Austria 2007

Table of Contents

Assessment and recommendations

Challenges facing the Austrian economy

Austria's deepening economic integration with Central and Eastern Europe

Overcoming labour market segmentation

Improving innovation

Rationalizing fiscal policy and strengthening public expenditure management

Overcoming labour market segmentation

Content Provider	OECD iLibrary
Organization	OECD
Abstract	Austria has an inclusive and well-performing labour market which has traditionally secured high aggregate employment rates and well-balanced and competitive wage levels. Success is also due to strong human capital formation in the education system, with a high share of graduates in the labour force with at least upper secondary education, notably through high quality vocational training, even if enrollment in tertiary education is lower than in other high-income OECD countries. This system continues to deliver good outcomes in the core labour market of primeage skilled workers, but has recently shown growing weaknesses in more marginal segments involving older, less-skilled, and less-well educated young and immigrant workers. Employment of mothers with small children is also traditionally low. This chapter describes the new challenges raised by the emerging segmentation in the labour market and authorities’ efforts to strengthen both labour supply and demand in the vulnerable segments. Against these policy objectives, measures which may lead to strong increases in minimum wages, in minimum social incomes, and in incentives for early retirement could prove counterproductive. The chapter offers further policy recommendations, including in the education system, in order to overcome any entrenchment in labour market segmentation.
Page Count	43
Starting Page	75
Ending Page	111
Language	English
Publisher	OECD Publishing
Publisher Date	2007-07-13
Access Restriction	Open
Subject Keyword	Economics
Content Type	Text
Resource Type	Chapter

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