OECD Reviews of Labour Market and Social Policies: Lithuania
Lithuania has undergone major economic and social change since the early 1990s. Despite
an exceptionally deep recession following the global financial crisis, impressive
economic growth over the past two decades has narrowed income and productivity gaps
relative to comparable countries in the OECD. But Lithuania faces a massive demographic
challenge, mostly as a result of large and persistent emigration driven primarily
by low wages and poor working conditions. Income inequality is also very high, and
households at the bottom of the income distribution have recently benefited very little
from the recovery. Major reforms of the labour code, the unemployment insurance system,
employment policies and pensions were recently undertaken within the New Social Model
to improve labour maket adaptibility and income security. This report provides comprehensive
analysis of Lithuania’s policies and practices compared with best practice in the
field of labour, social and migration from the OECD countries. It contains several
recommendations to tackle key challenges facing Lithuania. This report will be of
interest in Lithuania as well as other countries looking to promote a more inclusive
economy.
Published on March 01, 2018
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