ISBN 92-64-03591-5 Economic Policy Reforms Going for Growth © OECD 2006

ANNEX A

Structural Policy Indicators

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ANNEX A

Figure A.1. Cost of labour A. Minimum wages 1 Percentage of median wage 20032 70 OECD average FRA AUS

60

50

HUN GBR

OECD average

PRT NZL SVK

TUR CAN IRL

40 CZE

POL

USA

JPN ESP

30

LUX NLD GRC BEL

KOR 20

MEX

10

0 0

10

20

30

40

50

60

70 1998 3

B. Minimum cost of labour, 2003 4 Percentage of labour cost of average worker 60

50

OECD average

40

30

20

10

1. 2. 3. 4.

X

C

T

A FR

LU

GR

PR

L IR

S

D NL

L

N

AU

HU

L

R

NZ

GB

BE

L PO

K

N CA

A

E

N

SV

JP

US

CZ

P ES

KO

R

0

Missing countries do not have statutory mininum wage. 2002 for France, Greece, Hungary and Portugal. 2000 for Ireland, Slovak Republic and the United Kingdom. The cost of labour is the sum of the wage level and the corresponding social security contribution paid by employers.

Source: Chart A: OECD, Labour Force Statistics, 2005; Chart B: OECD, Employment Outlook, 2005 and OECD, Taxing Wages database. StatLink: http://dx.doi.org/10.1787/866734675434

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ANNEX A

Figure A.2. Net income replacement rates for unemployment1, 2 Percentage of earnings A. Short-term (first year) 2003 90

PRT SWE ESP FRA DNK

OECD average 80

EU15 DEU

OECD average

70

GRC

POL GBR

60

ITA 50

AUS

IRL

NOR BEL JPN AUT

NZL ISL

USA KOR HUN

CZE

60

70

LUX NLD

FIN CHE SVK CAN

40

30

20

10

0 0

10

20

30

40

50

80

90 1999

B. Long-term (after 5 years) 2003 90 OECD average

SVK CHE

80 IRL

70

DEU AUT BEL

FRA NOR EU15

OECD average

60

NLD LUX

50

JPN

NZL

POL

FIN

SWE

DNK

ISL GBR CZE PRT

AUS CAN

40

ESP

KOR HUN

30 USA 20

10 GRC

0 0

ITA 10

20

30

40

50

60

70

80

90 1999

1. Average of replacement rates for unemployed who earned 67% and 100% of average worker earnings at the time of losing job. 2. The comparability of net replacement rates between two points in time may be affected by methodological or definitional changes. Source: OECD, Benefits and Wages database. StatLink: http://dx.doi.org/10.1787/866734675434

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ANNEX A

Figure A.3. Average tax wedge on labour1 Percentage of total labour compensation A. At 67% of average worker earnings 2 2004 60 OECD average 50

SWE DEU CZE POL TUR ITA FIN

DNK SVK NLD

40 OECD average

GRC

NOR

AUS

CHE

ISL 20

FRA

PRT USA GBR

CAN JPN

HUN

EU15 AUT

ESP

LUX

30

BEL

NZL IRL

KOR MEX

10

0 0

10

20

30

40

50

60 1998

50

60 1998

B. At 100% of average worker earnings 3 2004 60 OECD average 50

TUR

POL 40 FRA

NLD DNK

CZE OECD average

30

SVK

NOR

FIN GRC ESP AUT

SWE BEL ITA DEU

HUN

EU15 CAN

JPN AUS 20

ISL NZL

GBR

PRT USA

CHE

KOR MEX

LUX 10

IRL

0 0

10

20

30

40

1. Measured as the difference between total labour compensation paid by the employer and the net take-home pay of employees, as a ratio of total labour compensation. It therefore includes both employer’s and employee’s social security contributions. 2. Single person with no child. 3. Couple with 2 children, average of 3 family situations. Source: OECD, Taxing Wages database. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.4. Labour taxation Percentage of average worker earnings A. Implicit tax on continued work: early retirement

1, 2

2003 100 OECD average 90 LUX

80

NLD

70 P RT ESP

A UT

60

FIN FRA

B EL

50 EU15 40

IRL

OECD average

DEU

30 NOR SWE

KOR

20

GB R JP N CHE

A US

ITA

CA N USA ISL NZL

10 0 0

10

20

30

40

50

60

70

B. Implicit tax on continued work: old-age pension

80

90

100 1998

2, 3

2003 110 OECD average 100 NLD 90 80 LUX 70 60 FRA

50

B EL KOR

40

JP N

SWE

ESP

30 A US 20 10

GB R CA N

IRL P RT A UT

USA ISL

0 0

NOR

EU15

FIN

OECD average

CHE DEU

ITA

NZL 10

20

30

40

50

60

70

80

90

100

110 1998

1. Average of implicit tax on continued work in early retirement route, for 55 and 60 years old. 2. EU15, excluding Denmark and Greece. 3. Implicit tax on continued work in regular old-age pension, for 60 years old. Source: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.5. Income support for disability and sickness A. Per cent of working age population non-employed and receiving disability benefits 1 1999 14

P OL OECD average

12

10

NOR B EL USA

A US

8

GB R

OECD average

ITA P RT

A UT FRA

DNK

EU15

DEU

6

SWE NLD

CA N ESP

4

2 M EX KOR 0

TUR

0

2

4

6

8

10

12

14 1990

2

B. Number of weeks lost due to sickness leave in 2002 3 4.0

3.5

3.0

2.5

2.0 OECD average 1.5

1.0

0.5

E

D AU T NO R SW E

NL

N

CZ

FI

IS L BE L

L

IT A CH E LU X PR T ES P DE U SV K GB R EU 15 DN K FR A

IR

N US A PO L

GR

HU

C

0

1. EU15, excluding Finland, Greece, Ireland and Luxembourg. 2. 1995 for Austria, Mexico and Poland. 3. The number for the United States may not be strictly comparable as it comes from a different source and refers to 2003. Source: Chart A: OECD, Transforming Disability into Ability, 2003 and National Compensation Survey (for the United States; Chart B: OECD, Employment Outlook, 2004. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.6. Employment Protection Legislation (EPL) Index scale of 0-6 from least to most restrictive A. Restrictiveness of protection legislation on regular employment 1 2003 6 OECD average 5 P RT 4

CZE

TUR

3

SWE DEU FRA GRC JP N A UT P OL HUN KOR FIN B EL EU15 ITA NZL IRL DNK CA N A US M EX NOR CHE

2

GB R

1

NLD ESP SVK

OECD average

USA

0 0

1

2

3

4

5

6 1998

B. Restrictiveness of protection legislation on temporary employment 1, 2 2003 6 OECD average 5

TUR

M EX

4 FRA

GRC P RT NOR

3 B EL 2 P OL NZL 1

HUN IRL GB R

CHE A US

CZE

OECD average

ITA

DEU FIN KOR EU15 A UT SWE JP N DNK NLD ESP

SVK

CA N USA

0 0

1

2

3

4

5

6 1998

1. EU15, excluding Luxembourg. 2. The figure for Spain is different from the one reported in Employment Outlook (2004) due to a re-assessment of regulation in this area. Source: OECD, Employment Outlook, 2004. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.7. Difference between coverage rates of collective bargaining agreements and trade union density rates1, 2 2000 90 OECD average

FRA

80 70 ESP P RT

60

NLD

A UT

A US

50

ITA 40

DEU

EU15 B EL

OECD average 30 CHE

20 NOR

FIN

SWE

10

CA N DNK USA

0

NZL

KOR

GB R JP N

-10 -10

0

10

20

30

40

50

60

70

80

90 1990

1. The coverage rate is measured as the percentage of workers who are covered by collective bargaining agreements, regardless of whether or not they belong to a trade union. The union density rate is the percentage of workers belonging to a trade union. Each data point on the figure is calculated as the simple arithmetic difference between the two rates. 2. The 2000 data point for trade union density is 1998 for Spain and 2001 for Switzerland. Source: OECD, Employment Outlook, 2004. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.8. Product market regulation Index scale of 0-6 from least to most restrictive A. Restrictiveness of economy-wide product market regulation1 2003 5.0 OECD average 4.5 4.0 3.5 3.0 P OL 2.5 TUR

M EX 2.0 OECD average 1.5 1.0

HUN A UT CHE DNK NLD P RT NORDEU IRL ESP B EL CA N FIN SWE USA NZL GB R EU15 ISL A US JP N

ITA FRA KOR

GRC

CZE

0.5 0 0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0 1998

B. Restrictiveness of regulation having an impact on economic behaviour 1, 2 2003 5.0 OECD average 4.5 4.0 3.5 HUN 3.0 ESP 2.5 NOR

OECD average

2.0

GB R

1.5

NZL CA N USA

1.0

SWE A UT

CHE

IRL JP N M EX

DEU NLD KOR

FRA EU15

P RT B EL

P OL ITA

GRC

TUR CZE

FIN

DNK ISL

0.5

A US

0 0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0 1998

1. EU15, excluding Luxembourg. 2. Economic regulation includes all domestic regulatory provisions affecting private governance and product market competition such as state control and legal barriers to entry in competitive market. Source: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.9. State control of business operations Index scale of 0-6 from least to most restrictive A. Extent of public ownership1, 2

2003 6

OECD average 5

P OL 4

HUN

ITA

NOR FRA 3

DEU OECD average

CHE MEX

2

NZL

ISL

GB R CA N

DNK

IRL

FIN

P RT ESP

A UT EU15 B EL SWE KOR

CZE

TUR NLD GRC

USA 1

JP N

A US

0 0

1

2

3

4

5

6 1998

B. Restrictiveness of regulatory burden on business procedures 1, 3

2003 6

OECD average 5

4

GRC 3

P OL

B EL TUR

HUN IRL

OECD average

2

SWE

A UT GB R NOR CA N KOR NLD

USA

1

MEX FIN

CZE EU15

ESP JP N ITA P RT CHE FRA

DEU

DNK

NZL ISL

A US

0 0

1

2

3

4

5

6 1998

1. EU15, excluding Luxembourg. 2. Covers scope and size of public entreprise as well as the direct state control over business enterprise (via voting rights or legislative bodies). Even though a policy priority was selected for Slovak Republic on the basis of this indicator, it is missing from the chart due to lack of data for 1998. The value of the index for 2003 is 1.9. 3. Concerns the involvement of the state in business operations via price controls or the use of command and control regulation. Source: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.10. Barriers to entrepreneurship Index scale of 0-6 from least to most restrictive A. Administrative burdens on corporations and sole proprietor start-ups 2003 6 OECD average 5

4 P OL 3 LUX

EU15 B EL SWE USA

1 DNK

A US

NZL CA N

ITA

GRC

KOR CZE

2

ESP

M EX

A UT

TUR HUN

CHE FRA JP N P RT

NLD FIN ISL

OECD average

DEU

NOR

GB R IRL

0 0

1

2

3

4

5

6 1998

B. Sector-specific administrative burden 2003 6 OECD average 5

4

P OL

A UT 3

TUR

M EX GRC

CZE KOR

2

USA

1

CHE LUX A US

SWE

NZL

ESP

JP N HUN

ITA

P RT ISL B EL DEU EU15 NLD FIN

OECD average

FRA

CA N NOR

IRLGB R

DNK

0 0

1

2

3

4

5

6 1998

Source: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.11. Barriers to entry Index scale of 0-6 from least to most restrictive A. Legal barriers to entry in industries 1 2003 5.0 OECD average 4.5 4.0 3.5 3.0 2.5

ISL

FRA

CHE NOR

2.0

B EL

SWE GRC A US

P RT

1.5 1.0

DEU USA

IRL

GB R ESP

CZE FIN

CA N

NLD MEX

KOR

HUN

ITA

OECD average

DNK

EU15

JP N TUR

P OL

0.5

A UT

NZL 0 0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0 1998

B. Complexity of administrative procedures 1, 2 2003 5.0 OECD average 4.5 4.0 3.5

TUR CHE

3.0 NLD

ISL

2.5 NZL 2.0

CZE

B EL

DEU IRL DNK OECD average

P OL 1.5

A US NOR

1.0 CA N HUN

0.5

P RT GB R EU15

USA FRA

FIN

SWE

JP N KOR

3.5

4.0

GRC ESP

ITA

MEX

A UT 0 0

0.5

1.0

1.5

2.0

2.5

3.0

4.5

5.0 1998

1. EU15, excluding Luxembourg. 2. Concerns complexity of government communication of rules and procedures as well as of licences and permit systems. Corresponds to the indicator of regulatory and administrative opacity. Source: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.12. Barriers to foreign direct investment Index scale of 0-6 from least to most restrictive A. Ownership barriers 2003 5.0 OECD average 4.5 4.0 P OL

3.5 CA N

3.0 2.5

A US OECD average

2.0

FRA

NZL

HUN

NOR SWE FIN

NLD

A UT GRC

EU15

DNK IRL

1.0

CZE

USA

P RT

LUX

1.5

ISL

DEU GB R

0.5

JP N

KOR

CHE

TUR

ITA

MEX

ESP B EL

0 0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0 1998

B. Discriminatory procedures 2003 5.0 OECD average 4.5 4.0 3.5 3.0 2.5 GRC

2.0 1.5 1.0 0.5

MEX KOR ISL NOR IRL GB R FIN ESP B EL A US

NLD FRA DNK

ITA DEU CHE

0

USA

SWE TUR P RT

CZE CA N

OECD average

EU15 LUX 0.5

NZL

JP N

A UT

0

HUN

1.0

1.5

2.0

2.5

P OL 3.0

3.5

4.0

4.5

5.0 1998

Source: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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ANNEX A

Figure A.13. Sectoral regulation Index scale of 0-6 from least to most restrictive A. Restrictiveness of regulation of professional services 1 2002 6 OECD average 5

4

ITA DEU A UT

LUX 3 FRA 2

B EL

OECD average

ESP

EU15 NLD

IRL

FIN 1

DNK

GB R

SWE

0 0

1

2

3

4

5

6 1996

B. Restrictiveness of regulation of fixed and mobile telecommunications 2002 6 OECD average TUR

5

4 ISL 3 B EL

SWE 2

1

CZE NLD

FIN

GB R

EU15 P RT

ESP KOR

JP N

NOR FRA

A US

OECD average

GRC

DEU

A UT

ITA

DNK

CA N USA

0 0

1

2

3

4

5

6 1997

1. Index of regulations in professional services (accounting, law, engineering and architecture). Even though a policy priority was selected for Canada and Japan on the basis of this indicator, they are missing from the chart due to lack of data for 2002. The value of the index for Canada and Japan for 1996 is 2.6 and 3.2 respectively. Source: European Commission and OECD. StatLink: http://dx.doi.org/10.1787/866734675434

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ANNEX A

Figure A.14. Educational attainment, 2003 Percentage of population aged 25-34 and 45-54 25-34

45-54

A. Upper-secondary education 100 90 80 70 60 50 40 30 20 10

IT A PO L PR T TU R M EX

IS L ES P

KO R NO R SV K JP N CZ E SW E CA N FI N US A DN K AU T DE U NZ L HU N FR A BE L IR L CH E NL D AU S EU 15 GR C GB R LU X

0

B. Tertiary education 100 90 80 70 60 50 40 30 20 10

IS L EU 15 NL D GR C DE U PO L M EX LU X HU N PR T AU T SV K IT A CZ E TU R

IR L AU S DN K GB R NZ L CH E

R SW E FI N NO R BE L US A ES P FR A

N

KO

JP

CA

N

0

Source: OECD, Education at a Glance, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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ANNEX A

Figure A.15. Educational achievement A. Average of PISA scores in reading, mathematics and science

1

2003 60 FIN

OECD average

KOR

40 CHE B EL SWE

20 OECD average

P OL

0 LUX

CZE DEU EU15

JP N

NZL IRL

DNK USA ESP

P RT

A US

FRA

HUN

-20

CA N

ISL NOR

A UT

ITA GRC

-40 -60 -80 MEX -100 -120 -120

-100

-80

-60

-40

-20

0

20

40

60 2000

B. Variation in student performance, 2000 Percentage of average variation of student performance in OECD countries 160

140

120 OECD average 100

80

60

40

20

A BE L NZ L DE U

US

R AU S CH E NO R

GB

L

X LU

PO

T

K DN

PR

N CZ E EU 15 GR C

CA

KO

R ES P JP N M EX FI N IT A SW E IS L AU T IR L HU N

0

1. PISA stands for Programme for International Student Assessment. Source: Chart A: OECD, Learning for Tomorrow's World, PISA 2003; Chart B: OECD, Knowledge and Skills for Life, PISA 2000. StatLink: http://dx.doi.org/10.1787/866734675434

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Figure A.16. Barriers to external trade A. Producer support estimate to agriculture1 Percentage of total value of agricultural production 2004 80 OECD average CHE

70

ISL

NOR

KOR 60 JPN 50

40 OECD average EU15 30

CZE

HUN

SVK

TUR CAN

20

USA

MEX 10

POL NZL

AUS

0 0

10

20

30

40

50

60

70

80 1998

B. Importance of external trade tariffs Index scale of 0-6 from least to most restrictive 2003 6 MEX OECD average 5

P OL 4 TUR HUN

KOR

3 USA NZL JP N CZE CHE CA N A US

2

OECD average EU15

1

ISL

0 0

NOR 1

2

3

4

5

6 1998

1. A single producer support estimate is calculated for EU countries. Source: Chart A: OECD, Producer and consumer support estimates database; Chart B: OECD, Economic Policy Reforms: Going for Growth, 2005. StatLink: http://dx.doi.org/10.1787/866734675434

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ANNEX A

Figure A.17. Health expenditure, 20031 Percentage of GDP 16

14

12

10 OECD average 8

6

4

2

IS L DE U CH E US A

IT A EU 15 DN K AU S SW E BE L PR T NL D CA N GR C FR A NO R

FI N IR L TU R AU T CZ E ES P GB R JP N NZ L HU N

KO

R SV K M EX PO L LU X

0

1. 2002 for Australia, Japan and United Kingdom. Source: OECD, Health database. StatLink: http://dx.doi.org/10.1787/866734675434

Figure A.18. Public investment Percentage of GDP Average 1998-2004 8

7 JPN 6 KOR TUR

5 MEX 4 IRL 3

GRC NLD

ITA FIN CAN

AUS 2 DNK

BEL GBR

NZL PRT

ISL ESP

USA FRA SWE CHE NOR

DEU

AUT

1

0 0

1

2

3

4

5

6

7 8 Average 1990-1997

Source: OECD, Economic Outlook, No. 78. StatLink: http://dx.doi.org/10.1787/866734675434

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OECD PUBLICATIONS, 2, rue André-Pascal, 75775 PARIS CEDEX 16 PRINTED IN FRANCE (12 2006 01 1 P) ISBN 92-64-03591-5 – No. 54947 2006 ISSN 1813-2715