Boosting productivity and inclusiveness in Lithuania

Vassiliki Koutsogeorgopoulou and Demetrio Guzzardi

No 1529, OECD Economics Department Working Papers from OECD Publishing

Abstract: Productivity growth in Lithuania has slowed in the aftermath of the global financial crisis,holding back income convergence and making it harder to reduce further the relatively highinequality and poverty. A comprehensive approach is required to address productivity andinclusiveness challenges, building on their synergies. The government has taken measuresto this end, with the New Social Model at the core, but efforts need to continue. Reformsshould focus on additional improvements in the business environment by easing furtherregulations on the employment of non-EU workers and reducing informality. Initiatives toimprove the governance of state-owned enterprises are welcome and need to continue.Improving access to finance and ensuring effective bankruptcy procedures are key toboosting firm dynamism, as are measures to encourage business-research sectorcollaboration on innovation. Addressing large skills mismatch is also a priority. Increasingthe market-relevance of the education system is important. More and better-quality jobs inthe formal sector, especially for the low-skilled, are key to inclusiveness and well-being,while more effective support and active labour market programmes would help combatingpoverty.This Working Paper relates to the 2018 OECD Economic Survey of Lithuania(www.oecd.org/eco/surveys/economic-survey-ireland.htm)

Keywords: benefits; education; employment protection legistation; financing productivity; inclusiveness; inequality; innovation; Lithuania; poverty; skills mismatch (search for similar items in EconPapers)
JEL-codes: D31 I24 I30 J24 J31 O31 (search for similar items in EconPapers)
Date: 2018-12-21
New Economics Papers: this item is included in nep-lma and nep-tra
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