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This paper explores the impact of policies and institutions on employment and unemployment of OECD countries in the past decades. Reduced-form unemployment equations, consistent with standard wage setting/price-setting models, are estimated using cross-country/time-series data from 21 OECD countries over the period 1982-2003. In the "average" OECD country, high and long-lasting unemployment benefits, high tax wedges and stringent anticompetitive product market regulation are found to increase aggregate unemployment. By contrast, highly centralised and/or coordinated wage bargaining systems are estimated to reduce unemployment. These findings are robust across specifications, datasets and econometric methods. As policies and institutions affect employment not only via their impact on aggregate unemployment but also through their effects on labour market participation -- particularly for those groups "at the margin" of the labour market, group-specific employment rate equations are also estimated. In the "average" OECD country, high unemployment benefits and high tax wedges are found to be associated with lower employment prospects for all groups studied, namely prime-age males, females, older workers and youths. There is also evidence that group-specific policy determinants matter, such as targeted fiscal incentives. The paper also finds significant evidence of interactions across policies and institutions, as well as between institutions and macroeconomic conditions. Consistent with theory, structural reforms appear to have mutually reinforcing effects: the impact of a given policy reform is greater the more employment-friendly the overall policy and institutional framework. Certain more specific interactions across policies and institutions are found to be particularly robust, notably between unemployment benefits and public spending on active labour market programmes as well as between statutory minimum wages and the tax wedge. Finally, it is shown that macroeconomic conditions also matter for unemployment patterns, with their impact being shaped by policies. (A bibliography is included. Contains 144 footnotes, 9 figures, 3 boxes and 27 tables.)

The contribution of higher education institutions to regional development is a theme that has attracted growing attention in recent years. Knowledge institutions are increasingly expected not only to conduct education and research, but also to play an active role in the economic, social and cultural development of their regions. The extent to which higher education institutions are able to play this role depends on a number of circumstances: the characteristics of the institutions, the regions in which they are located and the policy frameworks are all significant. At the same time, there are signs of more fundamental conceptual and strategic confusion. The discussions in this domain are frequently characterised by slogans and popular metaphors. This literature review was prepared to support the OECD project entitled 'Supporting the Contribution of Higher Education Institutions to Regional Development', which was conducted by the OECD Programme on Institutional Management in Higher Education (IMHE) in collaboration with the Directorate of Public Governance and Territorial Development. Drawing mainly from a selection of European and North American publications, the report takes an overall view on the development of higher education institutions in the regional context. It focuses on the evolution and discourses of higher education and research, the regional aspects of higher education policies, the various functions and roles that the institutions play, measures taken to link the universities with their regional partners, and the conditions which favour or hamper stronger regional engagement. (A bibliography is included. Contains 9 figures.)

Innovation is essential for the education sector. The ways in which curriculum decision making is organised reflects different implicit approaches on how educational systems pertain to promote innovation in education. Curriculum holds an outstanding place when seeking to promote innovation in education, as it reflects the vision for education by indicating knowledge, skills and values to be taught to students. It may express not only "what" should be taught to students, but also "how" the students should be taught. Curriculum innovations can include new subjects, combinations of old subjects or cross-cutting learning objectives. They may also take a form of new content, concepts, sequencing, time allocation or pedagogy. This paper characterises two contrasted approaches to curriculum decision making and bringing about innovations in education. At one extreme, a prescriptive central curriculum implicitly places the initiative for educational innovations at the level of the central administration. This approach provides strong incentives for schools and teachers to adapt innovations that would not otherwise take place. Innovations, supported by policy measures and informed by research, are brought within the reach of all schools and teachers in an equitable manner. The challenge is then to accommodate local needs and ensure the commitment to and implementation of innovations by schools and teachers. At the other extreme, decentralised curriculum decision making provides schools--and perhaps even teachers--with room to create their own educational innovations. This approach allows for experimentation relevant to individual students and local communities. Innovations are meant to spread through horizontal networks of schools and teachers. The challenge is then to provide incentives for individual schools and teachers to innovate or adapt innovations and ensure that they have equal capacity to do so. The paper provides an overview of various possible approaches linking curriculum policy to educational innovation, it shows that OECD countries can mix these approaches and it discusses elements that can affect those innovations in reality. Focusing on public lower-secondary education, it draws on various OECD and UNESCO data. First, the paper suggests that OECD education systems differ clearly when looking at formal curriculum decision making, although no system relies on a purely central or school-based approach to curriculum innovations. Second, several elements can reduce the "innovation power" of the central curriculum and the "innovation flexibility" of the decentralised curriculum. Third, stakeholders--such as experts, teachers and parents--are able to influence curriculum innovations differently at central and school levels. Innovations in central-level curriculum appear to have widespread possibilities to rely on expert knowledge with consultation with practitioners, parents and the wider public. School level curriculum innovations appear to build mainly on principals and teachers' knowledge with an indirect influence from experts and parents. Annexed are: (1) Emerging Curriculum Themes in OECD Countries; (2) Approaches to Bringing About Competence-Based Curriculum; (3) Central Level Curriculum in OECD Countries; (4) Details on the Implicit Approaches to Curriculum Innovations; and (5) Roles of Parents in Decision Making on Education Policy. (Contains 13 tables, 4 charts, 5 boxes and 20 notes.)

This working paper assesses the ease of immigrants' integration in OECD labour markets by estimating how an immigration background influences the probability of being active or employed and the expected hourly earnings, for given individual characteristics. Applying the same methodology to comparable data across twelve OECD countries, immigrants are shown to significantly lag behind natives in terms of employment and/or wages. The differences narrow as years since settlement elapse, especially as regards wages, reflecting progressive assimilation. Strong differences in immigrant-to-native gaps are also observed across countries, and the paper shows that they may, to a significant extent, be explained by differences in labour market policies, in particular unemployment benefits, the tax wedge and the minimum wage. In addition, immigrants are shown to be overrepresented among outsiders in the labour market and, as such, highly sensitive to the difference in employment protection legislation between temporary and permanent contracts. (Contains 36 footnotes, 1 figure and 10 tables.)

This literature review on school choice analyses the impact of choice schemes on students and on school systems focusing on equity. Reviewing the evidence can be difficult, as the literature is often fragmented and inconclusive, and the political importance of this research often results in high-profile attention given to individual studies rather than systemically understanding collected from a larger empirical base (Berends, Cannata and Goldring, 2011). Different political groups use evidence that supports their positions in favour or against school choice, and their positions relative to school choice are largely based on their ideologies, rather than on empirical work and evidence of effectiveness (Levin and Belfield, 2004). This report steps away from the ideological debate and provides research-based evidence on the impact of choice on disadvantaged students and schools. As "only with data on the consequences of different plans for school choice will we be able to reach sensible judgements rooted in experience (Fuller and Elmore, 1996, p. 8)". It uses analysis and statements that are supported empirically and attempts to cover the widest possible scope of research, and provide responses to the key question of how to balance choice with equity considerations. (Contains 7 tables, 4 figures, 5 boxes and 13 footnotes.)

This paper discusses the most relevant issues concerning teacher evaluation in primary and secondary education by reviewing the recent literature and analysing current practices within the OECD countries. First, it provides a conceptual framework highlighting key features of teacher evaluation schemes. In particular, it emphasises the importance of clarifying the purposes of teacher appraisal, whether summative when designed to assure that the practices enhancing student learning are undertaken or formative when conducted for further professional development objectives. It also encompasses the diverse criteria and instruments commonly used to assess teachers as well as the actors generally involved in the process and potential consequences for teachers' professional life. Second, it deals with a number of contentious points, including the question of the use of student outcomes to measure teaching performance, the advantages and drawbacks of different approaches given the purpose emphasised and resource restrictions, the implementation difficulties resulting from different stakeholders' interests and possible ways to overcome these obstacles. Finally, it provides an account of current empirical evidence, pointing out mixed results stemming from difficulties in assessing the effects of such evaluation schemes on teaching quality, teachers' motivation and student learning. It concludes by considering the circumstances under which teacher evaluation systems seem to be more effective, fair and reliable. Developing a comprehensive approach to evaluate teachers is critical to make demands for educational best practice compatible with teachers' appropriation of the process as well as to enhance the decisive attractiveness and recognition of the teaching profession. (Contains 1 table.)

Education plays an essential role in preparing the children of immigrants for participation in the labour market and society. Giving these children opportunities to fully develop their potential is vital for future economic growth and social cohesion in OECD countries. But migrant students in most OECD countries tend to have lower education outcomes than their native peers. Extensive previous research has described the system level, school level and individual level factors that influence the education outcomes of migrant students. Building on such previous research, this paper looks at the ways in which "education policies" can influence these factors to help provide better educational opportunities for migrant students. (Contains 7 footnotes.) [This review was prepared for the OECD Thematic Review on Migrant Education. It was presented and discussed at the Second Meeting of the Group of National Experts on the Education of Migrants in Paris on 13-14 October 2008.]

Policy interest in international surveys on Adult Learning (AL) has increased strongly. AL survey data are used as benchmarks for a country's educational system. However, results of key indicators like participation in learning activities often vary remarkably between different data sources. Stating that these differences are due to varying concepts and methods is not enough. The key question is: Which figures represent reality more appropriately? Therefore, evaluation of survey concepts and methods is crucial for international comparison of Adult Learning. This report provides guidelines on methodological and conceptual issues. Part one covers methodological aspects while part two deals with concepts, definitions and example questions. Recommendations are based on input from 14 countries. The methodological section covers data collection (telephone vs. f2f-interviews and online surveys); reference period (calendar year; recall problems); target population (age limit; non-national residents); sample design (proxy interviews, random selection of learning activities). The second part first discusses the basic concepts of Adult learning used in the European Adult Education Survey and in non-European countries (e.g. Canada, USA), including informal learning. The report then goes on to discuss empirical concepts and questions on AL participation and shows how different concepts affect empirical results and recommends example questions for formal, non-formal and informal learning. Other chapters refer to volume of AL; costs (what can be answered by non-experts?); providers of AL (define by teacher or learning location?); fields (ISCED, etc.); obstacles and benefits (which items are more valid?) and imputation. This report will act as a useful resource tool for researchers and policy makers when designing new national AL surveys or when optimising existing surveys. Results are focussed by a summary of conclusions, recommendations and example questions at the end of each section. Annexes include: (1) Acronyms used in this report; (2) References; (3) Existing OECD Education Working Papers. (Contains 40 footnotes and 18 figures.)

This research review reports on articles presenting empirical research in the area of how teacher-training institutions work on preparing future teachers for the integration of information and communication technologies (ICT) in their future classrooms. It was conducted mainly in English and French and covers research in 11 OECD-countries during the years 2002-2009. The research is unanimous, even if it is not comprehensive, and it shows that ICT is not used regularly or systematically in the countries reviewed. There are good examples, carried out by enthusiastic teacher trainers, but only a minority of the student teachers benefit from this. Very few articles report innovative use of recent technology. Most of the research reports on the use of computers and traditional computer software. Overall, student teachers do not integrate technology into their teaching. A number of reasons for this are identified. The overall picture is that implementation is necessary at all levels (macro, meso, micro) for a successful outcome, but research also gives examples of how problems can be overcome at a micro-level, which is the level of the actors' pedagogical practice. Enthusiasts do seem to have room for maneuver, but the lack of incentives makes it difficult to involve everyone. (Contains 2 figures and 24 footnotes.)

This report seeks to address critical issues such as these by synthesising the evidence on innovations in more market-driven education systems. The analysis draws on data from over 20 OECD and non-OECD countries, including both developed nations that seek to move beyond established systems of state-run schools, and developing nations where formal and de facto policies promote more free-market approaches to educational expansion. In doing this, the report focuses on the primary and secondary levels, where education is usually compulsory. The more universal nature of educational access at those levels provides a different set of conditions and incentives compared to the post-compulsory tertiary level. And the report pays special attention to the charter school experiment in North America, where reformers explicitly tried to create more competitive conditions in order to encourage the development of innovations in the education sector. Policy approaches such as this that use decentralisation, deregulation, greater levels of autonomy, competition and choice may have singular potential to induce innovations in the education sector, both in how education is organised and the school content that is delivered--critical concerns if the education sector is to be more effective and reach under-served populations. (Contains 2 tables, 2 figures and 32 endnotes.) [This report was prepared in collaboration with the OECD Secretariat for the project "Innovation Strategy for Education and Training" undertaken by the Centre for Educational Research and Innovation (CERI).]

Do some forms of student (and school) assessment hinder the introduction of innovative educational practices and the development of innovation skills in education systems? This report focuses on the impact of high-stake summative assessment on innovation and argues that it is possible to reconcile high-stakes assessments and examinations through innovative approaches to testing. While necessary, assessment based on high-stake examinations often acts as an incentive to teach or study "to the test". It may thus limit risk-taking by teachers, students and parents, for instance. The problem may be amplified if a system of accountability and incentives uses the results of these examinations and tests to assess teachers and schools. What should be done to ensure that the systems used to assess education systems do not stifle the risk-taking inherent to innovation--and that they foster innovation skills in students? This study proposes three main ways of combining assessment and innovation: 1) developing a wide range of performance measurements for both students and schools; 2) rethinking the alignment of standards and assessment; 3) measuring the impact of assessments on teaching and learning. One way of influencing teaching and learning might be to modify high-stake testing. Systems will adapt to this, and both teaching and learning will focus on acquiring the right skills. Rather than testing the content of learning, standards could relate to cognitive skills such as problem-solving, communicating and reasoning--with test/examination developers adapting those skills to subjects such as mathematics, science or literary analysis. Similarly, more use might be made of innovative assessment methods based on information and communication technologies, inasmuch as these may feature simulation or interactivity, for instance, at a reasonable cost. Focusing the assessment on cognitive processes rather than content would leave more scope for teachers to put in place innovative teaching/learning strategies. This does, however, assume a high standard of professionalism in teachers and an adequate system of continuing training and knowledge management. As a single type of assessment cannot fully capture student learning, one effective strategy might also be to multiply the number of measurements and thus relieve the pressure on students and teachers to perform well in a single, high-visibility, high-stake test. At the same time, this larger number of measurements could provide the necessary input for systems based on accountability, diagnosis and assessment of the effectiveness of innovative practice. Finally, assessing the technical standard of tests and examinations is an integral part of their development, but it is less common to address the impact they have on teaching/learning or the validity of how their results are used. Since assessment is an integral part of the education process, it is just as important to assess tests and examinations as it is other educational practices in order to achieve improvements and innovation in educational assessment, but also in educational practice. (Contains 12 notes.)

School systems aspire to provide equal opportunity for all, irrespective of socio-economic status (SES). Much of the criticism of recent school reforms that introduce accountability, autonomy, and choice emphasizes their potentially negative consequences for equity. This report provides new evidence on how national features of accountability, autonomy, and choice are related to the equality of opportunity across countries. We estimate whether student achievement depends more or less on SES in school systems employing these institutional features. The rigorous micro-econometric analyses are based on the PISA 2003 data for more than 180,000 students from 27 OECD countries. The main empirical result is that rather than harming disadvantaged students, accountability, autonomy, and choice appear to be tides that lift all boats. The additional choice created by public funding for private schools in particular is associated with a strong reduction in the dependence of student achievement on SES. External exit exams have a strong positive effect for all students that is slightly smaller for low-SES students. The positive effect of regularly using subjective teacher ratings to assess students is substantially larger for low-SES students. The effect of many other accountability devices does not differ significantly by student SES. School autonomy in determining course content is associated with higher equality of opportunity, while equality of opportunity is lower in countries where more schools have autonomy in hiring teachers. Autonomy in formulating the budget and in establishing starting salaries is not associated with the equity of student outcomes. Inequality of opportunity is substantially higher in school systems that track students at early ages. (Contains 19 footnotes, 6 figures and 9 tables.)