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2000). 4. The main exceptions to this pattern are Finland and Sweden for which adjusted rates are estimated to have been broadly constant. 5. 3. 6. Calculated over the entire population of households, including non-working households. 7. 9, as well as the more extensive analysis in Chapter 5, are based on a relative concept of poverty, in opposition to an absolute one. Comparisons of relative poverty rates – whether across countries or over time within a country – are not informative about how absolute poverty rates compare.

15 1993 Panel B. 56 JPN 2 DEU PRT GRC 0 BEL USA NZL NOR NLD -2 ITA FRA CAN -4 AUS GBR -6 ESP -8 -5 0 5 10 15 20 Change in the Theil index of regional unemployment rates a) 1990 and 2000 for Japan, Korea, New Zealand and Switzerland. b) As measured by the Theil index of regional unemployment rates. Source: OECD (2005), OECD Employment Outlook, Chapter 2, Paris. 1787/704326866407 Czech Republic, Finland, Japan, Mexico and Sweden. Thus, the increase in gross earnings inequality observed after 1994 may have been more than offset by the redistributive impact resulting from the employment gains achieved during this period, while redistribution through taxes and transfers has declined in many countries (as discussed in Chapter 5).

Indeed, a number of successful policy innovations during the past decade have expanded the toolbox of measures available to policy makers for improving labour market performance. Less positively, many countries have been reluctant to enact certain employment-friendly reforms, or have done so in a partial manner which has produced disappointing results or even created new problems. OECD EMPLOYMENT OUTLOOK – ISBN 92-64-02384-4 – © OECD 2006 « This text was published in Migration, Remittances and Development (OECD, 2005).

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