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75016 Paris email: biac@biac.org

France www.biac.org

BIAC Economic Policy Survey 2014

Structural Reforms and Implementation

5 May 2014

Contents

BIAC Economic Policy Survey 2014: Quick Facts ................................................................. 2

I. Context and objectives ................................................................................................... 3

II. Main findings .................................................................................................................. 4

a) Business Priorities for Reform .................................................................................... 4

b) Implementation of OECD recommendations ............................................................. 10

c) Regulatory policymaking processes ......................................................................... 11

III. Conclusions .............................................................................................................. 16

Annex: Methodological Notes .............................................................................................. 18

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BIAC Economic Policy Survey 2014: Quick Facts

The BIAC Economic Policy Survey 2014 presents information gathered from business in 23

countries around the world. The survey was carried out from January-April 2014 and released on 5

May 2014.

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I. Context and objectives

The revival of the global economy from the 2008-09 financial and economic crisis remains

slow, uneven and fragile, despite some signs of improvements in major advanced

economies. The level of real GDP in the G20 is still 2% below the downside scenario

projected in 2010, indicating that the world economy is on a path to years of lower potential

growth unless urgent and decisive actions are taken.1 Investment in the G20 remains 18%

below pre-crisis trend, while global FDI flows stand 30% below their 2007 peak.2,3

Unemployment rates remain high (7.6% on average across the OECD; 12% in the Euro

area), and 15.7% youth unemployment across the OECD.4

In parallel, new OECD analysis shows that the pace of countries’ reforms across product

and labour markets has generally slowed in recent years and has been largely piecemeal.5

In the context of a weak and prolonged economic recovery, BIAC has carried out a survey of

national business and employer organisations in order to shed light on aspects of our

economies where business believes reforms are urgently needed.

Business in 23 countries around the world participated in the BIAC survey.6 They were each

asked to: [a] select 5 top priorities for reform in their country and explain their choice; [b]

indicate to which extent they agree with the OECD’s top priority reforms for their countries

and the degree to which they have been implemented; and [c] comment on the form and

effectiveness of regulatory policymaking in their countries.

The 2014 BIAC survey builds upon the success of a prior survey carried out in late 2012.

This year’s survey provides a timely contribution to the development of country-specific

structural reform priorities that will feature in the 2015 OECD “Going for Growth” publication.

In parallel, the BIAC survey provides valuable information to the 2015 inaugural OECD

“Regulatory Policy Outlook” publication. These OECD landmark publications will act as

influential and complementary forces to policy discussions at the country level.

What follows is a synthesis of main findings from the survey. A separate compilation of

detailed country-specific responses are provided for the confidential use of the OECD

Secretariat only.

1 IMF (2014) “Macroeconomic and Reform Priorities”, prepared by IMF Staff with inputs from the

OECD and the World Bank. 2 Ibid.

3 OECD (2014) “FDI in Figures”, February 2014.

4 OECD (2014) “Harmonised Unemployment Rates”, March 2014.

5 OECD (2014) “Economic Policy Reform 2014: Going for Growth Interim Report”, OECD Publishing.

6 National business and employer organisations participated from 22 respondent countries: Brazil,

Canada, Chile, Czech Republic, Denmark, Finland, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea, Netherlands, New Zealand, Poland, Russia, Slovenia, South Africa, Spain, Turkey, and United Kingdom. A 23

rd response was also received from the BIAC China Task Force leadership.

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Number of reform priorities selected per area

of economy policy

1

2

3

4

5

6

6

7

9

10

11

12

13

14

16

16

25

0 5 10 15 20 25

Agriculture and energy subsidies

Rule of law

Housing policies

Public support for childcare, pre-school educationand parental leave policies

Employment protection legislation

Labour taxation

Unemployment benefits

Sickness and disability schemes

Innovation policies/Raising effectiveness of R&Dpolicies

Retirement schemes

Wage formation and minimum cost of labour

Public infrastructure

Active labour market policies ( ALMP)

Human capital

Efficiency of general taxation/tax structure

Public sector efficiency

Product market regulation

II. Main findings

a) Business Priorities for Reform

Using an OECD Economics Department categorisation, Figure 1 shows the number of

reform priorities selected by business respondents according to different areas of economic

policy.7 The following paragraphs point to selected highlights from Figure 1.

Figure 1: Business priorities for reform – Scores by area

7 Figure 1 shows data based on responses only to a depth of level 1 categorisation (not level 2) to

allow greater comparability between different areas of economic policy. See Methodological Annex for further details.

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0 2 4 6 8 10 12 14 16

Reduce economy-wide regulatory burdens

Reduce sector-specific regulatory burdens

Barriers to FDI and international trade

Number of reform priorities selected

per area of product market regulation

Extract from OECD-based business organisation:

“The key issue is to stop the ‘overproduction’ of legal

regulations and too frequent amendments. Business

expects stable and predictable rules that allow rational

planning of their activities.”

Extract from OECD-based business organisation:

“Improving the investment environment…can be

achieved [in part] by streamlining permit and licensing

procedures. This would naturally lead to a decrease in

bureaucratic steps and therefore costs.”

Extract from business

organisation in a major emerging

economy: “The additional burden of

the state bureaucracy and its

relationship with private entities,

marked by excessive and complex

procedures, result in a hostile

environment to business that

hinders investment and increases

transaction costs for goods and

services.”

Product market regulation

Similar to the results of the 2012 edition of the BIAC survey, respondents in 2014 still attach

greatest importance to reforming product market regulation. In fact, 17 out of the 23

participating business organisations (over 70%) selected product market regulation among

their top five priority areas for reform in their countries.

Reform of product market regulation refers to reducing economy-wide regulatory burdens,

reducing sector-specific regulatory burdens and addressing barriers to foreign direct

investment (FDI) and international trade. Again echoing the results of the 2012 BIAC survey,

Figure 2 shows that respondents in 2014 put greatest emphasis on the need to reduce

economy-wide regulatory burdens in the context of product market reforms.

Figure 2: Business priorities for reform in the area of product market regulation

We can look to the detailed country responses for information on what sorts of regulatory

burdens are facing companies in different parts of the world. For example:

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0 1 2 3 4 5 6 7 8 9 10

Improve transparency of regulation

Reduce the scope of public ownership/stateintervention

Streamline permit and licensing systems

Reduce cost and barriers to entry

Strengthen the competition framework

Energy and other network sectors

Ease of business exit

Retail trade and professional services

Total score

0 1 2 3 4 5 6 7

Enhance public healthcare sector efficiency

Improve monitoring mechanisms

Improve efficiency at sub-central level

Enhance efficiency and transparency of publicprocurement

Total score

Figure 3 provides more detail on the specific aspects of economy-wide and sector-specific

regulatory burdens. The results suggest that business tends to prioritise reforms that reduce

the scope of public ownership/state intervention, improve the transparency of

regulation, and streamline permit and licensing systems, among others.

Figure 3: Aspects of regulatory burdens where business believes reforms are required

Public sector efficiency

Figure 1 reveals that business organisations in many countries believe that reforms are

needed to improve public sector efficiency. In this context, Figure 4 presents scores for

public procurement, efficiency at sub-central level, monitoring mechanisms, and healthcare.

Figure 4: Business priorities for reform in the area of public sector efficiency

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Extract from OECD-based business organisation: “The proliferation of divergent regulation

stemming from regional and local layers of the administration further compiles the problem [of heavy

bureaucracy] by obliging enterprises to fulfil different criteria for the same activity to operate in

different regions or municipalities.”

Extract from OECD-based

business organisation:

“The high cost of healthcare

is partially paid for by

employers. Therefore it is

important that the [rise] of

health cost is contained.”

Extract from OECD-based

business organisation: “The

level of efficiency…is very

low. One of the main reasons

[is] the lack of efficient

monitoring mechanisms. This

is a problem because there

are no sanctions for the worst

practices, but also because

there is no incentive for

efficient behaviour.”

Extract from business in a

major emerging economy:

“Access to [the] public

procurement market remains

a major concern for foreign

invested enterprises. [This is]

due to the definition of

‘domestic’ goods and related

local content requirements, as

well as the government

explicitly barring foreign

companies from bidding on

public contracts.”

4

5

7

Combat tax evasion and broaden taxbases/ reduce tax expenditure

Shift tax burden away from labour andcapital toward consumption, immovable

property and the environment

Reduce distortions and fragmentation ofthe tax system

Total score

The following selected extracts illustrate some of the challenges facing companies as a

result of public sector inefficiencies:

Efficiency of general taxation/tax structure

Business respondents place strong emphasis on reforms to the efficiency of general

taxation and the overall tax structure, as shown in Figure 1. The sorts of reforms

requested by business include, for example, reducing distortions and fragmentation of the

tax system, shifting the tax burden away from labour and capital, and combating tax evasion

and broadening the tax base. Survey responses are shown in Figure 5.

Figure 5: Business priorities for reform in the area of general taxation

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Extract from OECD-based business

organisation: “The tax code is overly complex

as a result of piecemeal changes to tax

legislation by successive governments and the

enactment of temporary provisions and

hundreds of tax preferences. A lack of a formal

system to consolidate the tax reporting of

corporate groups or to otherwise transfer

corporate profits and losses among related

companies is also hindering competitiveness.”

Extract from business organisation in a

major emerging economy: “A costly and

complex tax system reduces competitiveness

and discourages investment. […] Apart from

having a strong bearing on the production of

goods and services, the tax structure is

complex, often resulting in cumulative taxes.

The challenge…is to strike a balance between

the need of the State to collect taxes and that

of ensuring a sound business environment.”

Extract from OECD-based business organisation: “Tax literature highlights that corporate taxes

and high marginal rates of income taxes are economically inefficient forms of taxation. These forms of

taxation drive away more activity and are more harmful to economic output than taxes on

consumption or property.”

Extract from OECD-based

business organisation:

“Vocational education offers

the potential to reduce youth

unemployment [...] A change

in mindset is required to

remove the stigma attached

to technical and vocational

occupations.”

Extract from OECD-based

business organisation:

“Education is the number

one priority issue […],

starting with the need to

improve teaching quality,

improve curricula and

reduce inequalities.”

Extract from business

organisation in a major

emerging economy: “The

poor quality of basic

education, the low supply of

vocational training, and

shortcomings in higher

education hinder the

innovative capacity of

enterprises and productivity.”

Human capital and labour utilisation

Reforms relating to human capital and labour utilisation rank high among business

priorities, as shown in Figure 1.

According to the survey responses for those who selected human capital as a key reform

area, business organisations put strong emphasis on reforms to expand vocational

education and training and its overall effectiveness and relevance to business.

Business organisations also prioritise reforms to primary and secondary education, as

shown in Figure 6, where the need to improve teaching quality receives strong attention,

among others.8

8 The BIAC Education Survey (June 2013), which collected responses from 28 national business and

employer organisations around the world, pointed to similar findings. It found that respondents put strong priority on improving curricula and strengthening teaching quality, but also on improving co-operation between employers and education policymakers, as well as greater linkages to labour market needs.

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Total score

Total score

0 2 4 6 8 10 12 14

Other

Housing policies

Public support for childcare, pre-school educationand parental leave policies

Employment protection legislation

Unemployment benefits

Labour taxation

Sickness and disability schemes

Retirement schemes

Wage formation and minimum cost of labour

Active labour market policies (ALMP)

0 1 2 3 4 5 6 7 8

Ensure adequate resources and infrastructure

Improve school accountability and autonomy

Improve incentives for secondary educationcompletion

Reduce inequality in education opportunities

Improve curricula and evaluation

Improve teaching quality

Total score

Figure 6: Aspects of primary and secondary education where business believes reforms are

needed

The main aspects of labour utilisation where business believes reforms are needed tend to

centre on active labour market policies (ALMP), wage formation and minimum cost of

labour, and retirement schemes, among others, as shown in Figure 7.

Figure 7: Aspects of labour utilisation where business believes reforms are required (extract

from Figure 1)

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Extract from OECD-based business organisation: “Given the higher proportion of youth who

remain unemployed, barriers that keep young workers from entering the workforce must be reduced.”

Extract from OECD-

based business

organisation: “As far

as the recruitment

conditions [are

concerned], a more

flexible and easier

hiring scheme should

be fostered.”

Extract from business organisation in a

major emerging economy: “The legal

and institutional system governing the

labour market is outdated, inflexible and

legally uncertain, undermining the

competitiveness of enterprises and

jeopardising the country’s economy

growth. Modern, clear, and safe rules are

required to promote economic efficiency

and the well-being of workers.”

Extract from OECD-

based business

organisation:

“Progress on labour

market activation reform

has been unacceptably

slow – the correct plans

are in place but more

rapid implementation is

needed.”

Extract from business organisation in a major emerging economy: “The following problems

should be discussed […] : strengthening the financial stability of the pension system through the

insurance payments and other sources of financing; [and] increasing the retirement age taking into

account life expectancy, principles of gender equality and other factors influencing the pension

system.”

Strongly agree 31%

Agree 46%

Neutral 19%

Disagree 2%

Strongly disagree 2%

b) Implementation of OECD recommendations

As shown in Figure 8, business and employers’ organisations generally agree with the

OECD Going for Growth 2013 country-specific reform priorities. In fact, 77% of the OECD’s

recommendations met with either “strong agreement” or “agreement”, and 19% met with

“neutral” reactions. This suggests that the vast majority of the OECD Going for Growth

2013 recommendations were perceived by business to be well-formulated. This finding

is in line with the 2012 BIAC Economic Policy Survey.

Figure 8: Business support for OECD Going for Growth 2013 country-specific reform

priorities (based on 22 responses)

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Not implemented at all 35%

Partly implemented

61%

Fully implemented 4%

In terms of the perceived degree of implementation of the OECD Going for Growth 2013

recommendations as of February 2014, respondents perceive full implementation for only

4% of the 2013 reform priorities (see Figure 9). The majority of reform priorities are

perceived to be partly implemented (61%), while 35% are considered to have not been

implemented at all. These results again closely echo findings from the BIAC Economic

Policy Survey 2012 with respect to the OECD Going for Growth 2011 recommendations.

Figure 9: Perceived degree of implementation of the OECD Going for Growth 2013 priorities

for reform (based on 22 responses)

In summary, while business tends to support the vast majority of OECD country-specific

recommendations, it would appear that there is a significant shortfall in countries’

implementation of these recommendations. These findings suggest that the OECD should

examine the factors that could enhance implementation; one such factor – the effectiveness

of regulatory policymaking processes – is examined in the following section of this report.

c) Regulatory policymaking processes

Recognising the importance of private sector engagement in order to enhance the design

and implementation of policy and regulatory reforms, respondents to the BIAC survey were

asked to comment on various aspects of the process for developing new regulations.

Figure 10 shows that, when developing new regulation, only 32% of respondents perceive

that minimum periods for consultation are respected by the government. While 45%

indicate that minimum periods are sometimes respected, a significant proportion (23%)

considers that minimum periods are rarely respected by the government.

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Never 0%

Rarely 23%

Sometimes 45%

Often 32%

Not enough information to

judge 0%

Never 0%

Rarely 38%

Sometimes 48%

Often 14%

Not enough information to

judge 0%

Results also show that only 14% of respondents consider that the allocated time for

consultation is sufficient (see Figure 11). While 48% of respondents perceive that the

consultation period is sometimes sufficient, 38% feel it is rarely sufficient.

Figure 10: Percentage of business respondents who perceive that governments respect

minimum periods for consultation (based on 21 responses)

Figure 11: Percentage of business respondents who perceive that the allocated time for

consultation is sufficient (based on 21 responses)

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Never 0%

Rarely 5%

Sometimes 24%

Often 71%

Not enough information to

judge 0%

While Figures 10 and 11 raise concerns about the timing aspects of the consultation

process, business respondents were significantly more positive when asked whether the

instructions for the consultation process were clear. Figure 12 shows that 71% of

respondents believe that the instructions on how to respond to consultations are

clear (for example, when, where and in what format to submit their answers).

Figure 12: Percentage of business respondents who perceive that the instructions on how to

respond to consultations are clear (based on 21 responses)

Less clear however is how information provided during consultations will be used. Figure 13

shows that, when governments develop new regulation, only 29% of respondents

consider that it is clear how the information businesses provide during consultation

will be used. It was found that 24% feel this is rarely clear, and 9% express it is never clear.

It also appears that while documents for consultation are often easily accessible

(according to 43% of respondents), almost a quarter of respondents (24%) state that

this is rarely the case (see Figure 14).

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Never 5%

Rarely 24%

Sometimes 28%

Often 43%

Not enough information to

judge 0%

Figure 13: Percentage of business respondents who perceive that consultation processes

make clear how the collected information will be used (based on 21 responses)

Figure 14: Percentage of business respondents who perceive that documents relating to

consultations are easily accessible (based on 21 responses)

Never 9%

Rarely 24%

Sometimes 38%

Often 29%

Not enough information to

judge 0%

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Never 9%

Rarely 57%

Sometimes 19%

Often 10%

Not enough information to

judge 5%

B. Complete regulatory impact assessment (An impact assessment that includes analysis of all elements recommended in the government's national

guidelines on RIA)

Never 9%

Rarely 27%

Sometimes 36%

Often 23%

Not enough information to

judge 5%

A. Partial regulatory impact assessment (An impact assessment that includes analysis of some but not all elements recommended in the government’s national

guidelines on RIA)

In addition to improving the effectiveness of consultation processes, another important factor

that can support the implementation of reforms would be to carry out regulatory impact

assessments (RIAs). Figure 15 suggests there is room for improvement in governments’

efforts to carry out such assessments. Results show that only 23% of respondents

consider that partial RIAs are carried out often, compared to 36% who state that they

are carried out either rarely or never. This finding is even more striking when

respondents are asked whether complete RIAs are carried out, where 66% report

rarely or never.

Figure 15: Percentage of business respondents who consider that proposed changes in

regulation are accompanied by a partial or complete regulatory impact assessment (based on 21 responses)

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Finally, recognising that companies in different countries operate internationally,

respondents were invited to comment on certain aspects of international regulatory co-

operation. A strong majority of respondents (87%) indicate that it is important for

business that governments align regulations internationally (based on 22 responses).

Interestingly, 50% of respondents indicated that they have been using the OECD’s 2012

Recommendation of the Council on Regulatory Policy and Governance to promote

regulatory reform with their respective governments (based on 20 responses). This level

of usage suggests there is still strong potential to further promote internationally-agreed

OECD instruments in order to support reform in many countries around the world.

III. Conclusions

The results of the BIAC Economic Policy Survey 2014 reinforce several important business

messages to policymakers:

Governments in many countries need to urgently introduce reforms in product

market regulation (notably to reduce economy-wide and sector-specific

regulatory burdens), where actions should be taken to reduce the scope of public

ownership/state intervention, improve the transparency of regulation, and streamline

permit and licensing systems, among other reforms.

Other key priorities for structural reform in many countries include:

o Improving public sector efficiency (including enhancing the efficiency and

transparency of public procurement).

o Increasing the efficiency of general taxation and the overall tax

structure (including reduction of distortion and fragmentation of the tax

system).

o Strengthening human capital through particular emphasis on reforms to

expand and improve vocational education and training, as well as reforms to

primary and secondary levels of education (including focus on teaching

quality, curricula, and assessment).

o Improving labour utilisation through reforms of active labour market

policies, wage formation, retirement schemes, among others.

The reforms described above are considered top priorities by many national business

and employer organisations for their respective governments in 2014. Through their

implementation, together with other appropriate reforms, companies will be better

able to invest, trade, innovate and create jobs – all of which are essential drivers for

economic recovery. The country-specific reform priorities should be considered in the

OECD Going for Growth 2015 publication.

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Governments’ commitment to implementing such reforms in a timely fashion is

critical in order to deliver much-needed business confidence. The finding that 35%

of the OECD’s 2013 reform priorities are considered by business respondents to

have not been implemented at all, and only 4% full implemented – echoing a similar

trend from BIAC’s Economic Policy Survey 2012 – suggests that there is significant

room for supporting governments in implementing important reforms. This is an

important aspect which merits greater attention in OECD analysis.

One important factor for increasing the implementation of proposed reforms would be

to improve the effectiveness of the regulatory consultation process. This could

improve the design of new regulations and help to ensure key stakeholder support for

their implementation. In order to increase the quality of consultations, many

governments need to step up their respect for minimum periods of consultation, allow

greater time for consultation, explain how the information provided during

consultations will be used, and make documents for consultation more easily

accessible.

Another important factor for ensuring the successful introduction of new reforms

would be to carry out regulatory impact assessments (RIAs). Unfortunately,

results from the BIAC Economic Policy Survey 2014 suggest that business in over a

third of respondent countries consider that partial RIAs are rarely or never carried

out, and business in two-thirds of respondent countries consider that complete RIAs

are rarely or never carried out. There is therefore significant room for improvement in

governments’ efforts to carry out RIAs.

Finally, recognising that businesses operate globally, there should be greater

alignment of regulations internationally in order to enable companies to operate

more efficiently and effectively across borders. This calls for improved international

regulatory co-operation. The OECD has a significant role to play in this area and the

use of its instruments should be expanded, including the OECD 2012

Recommendation of the Council on Regulatory Policy and Governance.

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Annex: Methodological Notes

Timeline

The survey was launched in late January 2014 and concluded in April 2014.

Respondents

22 national business and employer organisations from all continents participated in the

survey on a voluntary basis. Only one response per country was accepted.

While the sample size remains relatively small, it is important to consider that each

participating business and employer organisation holds thousands of companies across

several economic sectors in their respective memberships. In completing the survey, it was

expected that the organisations would ensure well-balanced and representative responses.

In the absence of a BIAC observer organisation in China, the leadership of the BIAC China

Task Force was invited to provide a 23rd response. Similar to other participants, the BIAC

China Task Force leadership was tasked to reflect as much as possible the established

views of the broader BIAC China Task Force membership. However, unlike the other

participating organisations, the BIAC China Task Force leadership response presents solely

the views of OECD-based business operating in China and not domestic business.

Confidentiality

In order to encourage respondents to freely put forth their respective views and priorities,

including comments on the implementation of reforms and the nature of their engagement in

consultation processes, it was decided to ensure the confidentiality of their responses.

Thus a confidential set of country-specific responses is made available to the OECD

Secretariat for its internal use only, in order to support its preparation of the OECD Going for

Growth 2015 and OECD Regulatory Policy Outlook 2015 publications.

For the purposes of this synthesis report, the names of participating organisations and their

responses have been anonymised.

Survey structure

The survey was structured into four main parts:

I. Selection of top 5 priorities for reform in respondent’s country

II. Explanation for selection in Part I

III. Perspectives on the implementation of the OECD’s Going for Growth 2013

recommendations in respondent’s country

IV. Perspectives on how regulatory policymaking processes operate in practice in

respondent’s country

With respect to Part I (Selection of the top 5 priorities for reform in respondent’s country), the

survey template presented a categorisation of different areas for potential reform which

mirrors the categorisation that will feature in the OECD Going for Growth 2015 publication –

see Table 1 below. Respondents were asked to select their top five priorities in Level 1, and

as many related Level 2 priorities as considered necessary.

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Table 1: Categorisation of reform priorities

Reform Area Level 1 detail Level 2 detail

Product market regulation

Reduce economy-wide regulatory burden

Reduce cost and barriers to entry

Ease business exit

Improve transparency of regulation

Streamline permit and licensing systems

Reduce the scope of public ownership/state intervention

Reduce sector-specific regulatory burdens

Energy and other network sectors

Retail trade and professional services

Barriers to FDI and international trade

Human capital

Primary and secondary education

Ensure adequate resources

Improve teaching quality

Improve school accountability and autonomy

Improve curricula and evaluation

Postpone early tracking

Limit grade repetition

Improve incentives for secondary education completion

Reduce inequality in education opportunities

Tertiary education

Increase university autonomy

Introduce an evaluation system for universities

Introduce/raise tuition fees with income-contingent payback

Improve incentives for earlier completion/encourage early admission

Expand access/enrolment/reduce inequalities in access

Vocational education and training Expand vocational education and training

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Enhance VET effectiveness and its link to business

Efficiency of general taxation/tax structure

Shift tax burden away from labour and capital toward consumption, immovable property and the environment

Reduce distortions and fragmentation of the tax system

Combat tax evasion and broaden tax bases/reduce tax expenditure

Public sector efficiency

Enhance public healthcare sector efficiency

Improve monitoring mechanisms

Improve efficiency at sub-central level

Enhance efficiency and transparency of public procurement

Rule of law

Innovation policies/Raising effectiveness of R&D policies

Increase and/or reform R&D tax incentives

Improve targeting of public support

Improve access to venture capital

Strengthen collaboration between research centres/universities and industry

Public infrastructure

Increase capacity

Introduce road pricing/congestion charges

Promote private sector participation

Agriculture and energy subsidies

Agriculture subsidies

Energy subsidies

Reduce barriers to agricultural imports

Labour Average and marginal taxation of labour income

Reduce overall or marginal labour taxation

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Remove tax and benefit disincentives to full-time female/second earners/lone parents participation

Remove tax and benefit disincentives to low earner participation

Reduce labour tax wedge for low income earners, other specific groups

Public support for childcare, pre-school education and parental leave policies

Expand the provision of childcare, pre-school education

Enhance targeting of childcare pre-school education support

Reform parental leave policies

Housing policies

Reform planning/zoning regulations

Reduce rent controls

Improve targeting or reduce the use of housing subsidies/improve targeting in the provision of social housing

Reduce/eliminate preferential tax treatment for housing investment

Retirement schemes

Phase out early retirement schemes

Increase statutory or minimum retirement age

Lengthen contributory requirements/make benefits more actuarily neutral

Adjust benefits/retirement age in line with life expectancy

Sickness and disability schemes

Strengthen gate-keeping for sickness and disability systems

Reduce generosity of the benefits

Improve return to work of recipients

Unemployment benefits

Reduce replacement rates over the unemployment spell/reduce benefit duration

Tighten conditions for unemployment benefits

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Expand coverage/generosity

Active labour market policies (ALMPs)

Expand ALMPs/expand training under ALMPs

Strengthen activation of the unemployed

Improve efficiency and quality of training by promoting employers’ involvement

Introduce or expand evaluation of ALMP spending

Wage formation and minimum cost of labour

Reform wage bargaining to better align wages with productivity conditions at aggregate, regional, firm and skill-specific levels

Reduce relative level or growth rate of minimum wages vis-à-vis median wages

Reduce minimum cost of labour

Employment protection legislation

Re-balance job protection between permanent and temporary contracts

Improve the efficiency and predictability of legal procedures in labour courts

Other job protection reforms to reduce informality

Other

Financial market reform