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Intersectionality highlights that different aspects of individuals' identities are not independent of each other. Instead, they interact to create unique identities and experiences, which cannot be understood by analysing each identity dimension separately or in isolation from their social and historical contexts. Intersectional approaches in this way question the common classification of individuals into groups (male vs. female, immigrant vs. native etc.), which raises important implications for the policy-making process. In education, analyses with an intersectional lens have the potential to lead to better tailored and more effective policies and interventions related to participation, learning outcomes, students' attitudes towards the future, identification of needs, and socio-emotional well-being. Consequently, as elaborated in this paper, some countries have adjusted their policies in the areas of governance, resourcing, developing capacity, promoting school-level interventions and monitoring, to account for intersectionality. Gaps and challenges related to intersectional approaches are also highlighted.

Principals (policy makers) have debated the progress in U.S. student performance for a half century or more. Informing these conversations, survey agents have administered seven million psychometrically linked tests in math and reading in 160 waves to national probability samples of selected cohorts born between 1954 and 2007. This study is the first to assess consistency of results by agency. We find results vary by agent, but consistent with Flynn effects, gains are larger in math than reading, except for the most recent period. Non-whites progress at a faster pace. Socio-economically disadvantaged white, black, and Hispanic students make greater progress when tested in elementary school, but that advantage attenuates and reverses itself as students age. We discuss potential moderators.

Governments recognise that careers guidance, underpinned by accurate labour market information, can help learners make post-secondary education choices that match their interests, aptitudes and abilities, and lead to rewarding employment. For this reason, they have invested in building linked education/employment information systems and other information resources which are displayed on websites targeted to learners and their families. However, researchers and governments agree that these efforts are often ineffective in informing learners' decisions -- access to information is not sufficient to provide effective support to student choice. Drawing upon the insights of behavioural economics, this paper examines how learners access and use information, and what this implies for the design of public study and career choice websites that aim to effectively support student choice. The report also takes stock of the career guidance websites in use in the majority of OECD countries, and sets out to provide actionable advice for policy makers to guide the design of effective information policy levers that support student choice.

The worldwide school closures in early 2020 led to losses in learning that will not easily be made up for even if schools quickly return to their prior performance levels. These losses will have lasting economic impacts both on the affected students and on each nation unless they are effectively remediated. While the precise learning losses are not yet known, existing research suggests that the students in grades 1-12 affected by the closures might expect some 3 percent lower income over their entire lifetimes. For nations, the lower long-term growth related to such losses might yield an average of 1.5 percent lower annual GDP for the remainder of the century. These economic losses would grow if schools are unable to re-start quickly. The economic losses will be more deeply felt by disadvantaged students. All indications are that students whose families are less able to support out-of-school learning will face larger learning losses than their more advantaged peers, which in turn will translate into deeper losses of lifetime earnings. The present value of the economic losses to nations reach huge proportions. Just returning schools to where they were in 2019 will not avoid such losses. Only making them better can. While a variety of approaches might be attempted, existing research indicates that close attention to the modified re-opening of schools offers strategies that could ameliorate the losses. Specifically, with the expected increase in video-based instruction, matching the skills of the teaching force to the new range of tasks and activities could quickly move schools to heightened performance. Additionally, because the prior disruptions are likely to increase the variations in learning levels within individual classrooms, pivoting to more individualised instruction could leave all students better off as schools resume. As schools move to re-establish their programmes even as the pandemic continues, it is natural to focus considerable attention on the mechanics and logistics of safe re-opening. But the long-term economic impacts also require serious attention, because the losses already suffered demand more than the best of currently considered re-opening approaches.

The recent refugee crisis has put many Organisation for Economic Cooperation and Development (OECD) countries under considerable pressure to accommodate and integrate large numbers of refugees. Refugee students are a particularly vulnerable group due to their forced displacement, but their needs are not always met by education systems, which can hinder the integration potential of these students. This poses considerable challenges as the integration of refugee students in education systems is important for their academic outcomes as well as their social and emotional well-being. The success (or lack of) integration in schools can also affect the future labour market and social integration potential of these children and youth. While there is a growing body of research on the integration of immigrants, policy-relevant research on refugee children and youth from an educational perspective is rather limited, fragmented and case specific. Detailed surveys and research projects focusing on the current wave of refugees that allow for cross-country comparisons are not yet available. Drawing on research from previous refugee waves, the paper examines key needs of refugee students and factors that promote their integration. It proposes a holistic model of integration in education that responds to the learning, social and emotional needs of refugee students. Furthermore, the paper examines what type of policies and practices are in place in OECD countries that support the integration of refugee students. Nonetheless, evaluations of practices and policies are often missing, which makes it difficult to assess whether they are successful. The paper finishes with some policy pointers on how to promote the integration of refugee students.

Differences in teacher quality are commonly cited as a key determinant of the huge international student performance gaps. However, convincing evidence on this relationship is still lacking, in part because it is unclear how to measure teacher quality consistently across countries. We use unique international assessment data to investigate the role of teacher cognitive skills as one main dimension of teacher quality in explaining student outcomes. Our main identification strategy exploits exogenous variation in teacher cognitive skills attributable to international differences in relative wages of nonteacher public sector employees. Using student-level test score data, we find that teacher cognitive skills are an important determinant of international differences in student performance. Results are supported by fixed-effects estimation that uses within-country between-subject variation in teacher skills.

This paper looks at the importance of mechanisms that give formal recognition to vocational skills acquired through work-based learning and how such mechanisms might be developed. It describes how skill recognition can benefit individuals, employers and society as a whole, and identifies in which contexts skill recognition has the highest potential to bring benefits. The focus is on three tools that are commonly used to shorten the path to a formal qualification: admission into a programme, reduced programme duration and qualification without a mandatory programme. For each of these tools, this paper sets out country approaches, discusses common challenges that arise in their implementation and advances policy messages to support policy design and implementation.

Resilience refers to the capacity of individuals to prosper despite encountering adverse circumstances. This paper defines academic resilience as the ability of 15-year-old students from disadvantaged backgrounds to perform at a certain level in the Programme for International Student Assessment (PISA) in reading, mathematics and science that enables them to play an active role in their communities and prepares them to make the most of lifelong-learning opportunities. Using data from the most recent PISA cycles, this paper explores changes in the share of resilient students over time (2006-2015); highlights the importance of school environments and resources in mitigating the risk of low achievement for disadvantaged students; and identifies school-level factors that are associated with the likelihood of academic resilience among socio-economically disadvantaged students. Analyses reveal that several countries were able to increase the share of resilient students over time, reflecting improvements in the average performance of students, or a weaker relationship between socio-economic status and performance. In the vast majority of education systems examined, the likelihood of academic resilience among disadvantaged students is lower in schools where students report a negative classroom climate. The paper concludes by exploring school policies and practices that are associated with a positive classroom climate. [This work was supported by a contribution to the PISA programme of work from Vodafone Germany Foundation.]

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.)

In this study, we investigated how empirical indicators of test-taking engagement can be defined, empirically validated, and used to describe group differences in the context of the Programme of International Assessment of Adult Competences (PIAAC). The approach was to distinguish between disengaged and engaged response behavior by means of response time thresholds. Constant thresholds of 3000 ms and 5000 ms were considered, as well as item-specific thresholds based on the visual inspection of (bimodal) response time distributions (VI method) and the proportion correct conditional on response time (P+>0% method). Overall, the validity checks comparing the proportion correct of engaged and disengaged response behavior by domain and by item showed that the P+>0% method performed slightly better than the VI method and the methods assuming constant thresholds. The results for Literacy and Numeracy by module revealed that there was an increase from Module 1 to Module 2 in the proportion of disengaged responses, suggesting a drop in test-taking engagement. The investigation of country differences in test-taking engagement by domain using the P+>0% method showed that the proportion of responses classified as disengaged was quite low. For Literacy, the proportion was well below 5% for the majority of countries; in Numeracy, the proportion was even smaller than 1% for almost all countries; while for Problem solving, the proportion of disengaged responses was more than 5% but usually well below 10%. There were significant differences in test-taking engagement between countries; the obtained effect sizes were small to medium. Population differences in test-taking engagement were highly correlated between the three domains, suggesting that test-taking engagement can be conceived as a consistent characteristic. Furthermore, there was a clear negative association between test-taking disengagement and proficiency in Literacy, Numeracy and Problem solving, respectively. Finally, subgroup differences for gender, age, educational attainment, and language proved to be insignificant or very small. Results suggest that males tend to be more disengaged, that disengagement increases with age in Problem solving, with lower educational attainment and when the test language is not the same as a testee's native language. Appended are: (1) Country differences in test-taking engagement; and (2) Subgroup differences in test-taking engagement.

Using the 2012 PIAAC data, our analysis confirms that there are significantly higher earnings and employment returns to "both" increasing levels of formally recognised education, and to increasing levels of numeracy, literacy and information and communication technologies (ICT) skills proficiencies controlling for the level of education. Unsurprisingly, the labour market returns to changes in formally recognised levels of education in general exceed the labour market returns associated with increasing levels of skills proficiency. In the case of literacy and numeracy proficiencies, improved literacy and numeracy skills narrow the labour market outcomes gap between individuals with different levels of formally recognised education, but do not close it completely. The analysis demonstrates more substantial returns to ICT skills. Furthermore, possession of higher levels of ICT skills and lower levels of formally recognised qualification are often associated with higher returns compared to individuals with higher levels of formally recognised education but lower ICT proficiency levels. In other words, ICT skills proficiencies often entirely compensate for lower formally recognised qualifications in the labour market. Contains the following annexes: (1) Country Literacy and Numeracy Profiles; and (2) Demographic Control Variables.

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 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.)

This paper reviews recent measurement work on User-Created Content (UCC) undertaken in OECD countries. It shows that UCC is emerging as a significant area of economic and social activity worthy of consideration for official measurement and discusses the implications for the OECD Model Survey on ICT Access and Use by Households and Individuals. (Study summary and questionnaires are annexed. Contains 10 footnotes, 6 figures and 1 table.)

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.)

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.)

Public bodies hold a range of information and content ranging from demographic, economic and meteorological data to art works, historical documents and books. Given the availability of information and communication technologies (ICTs) public sector information can play an important role in producing innovative value-added services and goods. Furthermore, these technologies also provide a wider population better access to educational and cultural knowledge. Both commercial opportunities and the wider spread of information have positive economic and social benefits. Knowledge is a source of competitive advantage in the "information economy", for this reason it is economically important that there is wide diffusion of public information. Governments also have a basic commitment that citizens have to access national cultural heritage such as paintings, monuments and books; and this is also important for social inclusion. To contribute to better conditions for learning, the digitisation of cultural and educational resources is fundamental. New communication tools, such as interactive Web sites and games, often also reach groups of people with no previous interest, notably if they allow personal participation. OECD countries have recently initiated many programmes which use these tools for cultural and educational content. The main emphasis of policies has shifted to improving access to available resources, and preservation of content created digitally ("digitally-born") receives increasing attention. Public Sector information (PSI) constitutes the "raw material" for a variety of products and services in applications across a wide range of industries, and analysis has concluded that it is an important economic asset. This study gives an overview of the main areas of PSI and their commercial applications. Currently geographic and meteorological information have the greatest economic potential; and so far their use has had positive impacts on employment and growth. Specifically combining various types of PSI has led to the development of innovative products such as location-based services. Technological innovation including the development of mobile networks open up further markets for PSI-based services, and better data quality and e.g. increased interoperability open up cross-border services. Industry structure has also been affected by ICTs; often higher value added producers have taken the place of previous intermediary distributors in the production value chain. Further, the roles of public and private firms are changing and the growth of mobile services markets stimulates the development of PSI business re-use further. To develop competitive PSI markets, most OECD countries have attempted to ensure private service providers face the same conditions as public institutions, enabled private sector access to public data and clarified conditions under which these data can be used. For example portals have been developed that provide an overview of available PSI and conditions for use. Important questions are: which access regimes and re-use arrangements maximise the positive economic and other benefits of PSI, and which may for example develop commercial activities based on government-created content/data. In some OECD countries access regimes allow commercial re-users have cheap and readily available access to PSI. They then add value to the public data and re-sell it to firms and consumers. Some studies argue that such open access regimes improve competitive market conditions for PSI re-use, stimulate economic growth and create jobs. However there are also arguments that commercial re-users may have low-cost access to data which was costly to create for the government, and that taxpayers may pay twice for the PSI content (once for creation of government content, and the second time when purchasing the content from a commercial re-user, although provided re-use is non-exclusive, users can also go to the original source for the original information, presumably at lower cost, but without value-added services). On the other hand, in other OECD countries, there are access regimes where the public sector holds public sector information for its own use or employs cost-recovery strategies that allow only limited and potentially expensive access. In this scenario there are arguments that potential consumers of this data may have only restricted access to it, and that this approach is more costly to the consumer and for the taxpayer. Moreover, the potential economic gains from development of new commercial activities based on PSI reuse may be foregone. The economic and equity arguments surrounding commercial re-use of public sector information and content are complex and deserve considerably more analysis and policy attention. If public sector content is to be more widely available through ICTs, it is crucial that cultural institutions have adequate in-house capacities and sustainable financial resources for digitisation. In many countries the cultural sector has faced cuts in public funding, and efficient digitisation has been a challenge for small and regional institutions. While public resources will remain important, private-public partnerships and the development of e-learning markets provide alternatives to finance content digitisation. Public sector information can also be sold and monetized to develop self-sustaining revenue streams helping data creation and digitisation efforts. Networks and interactive communities are also important because they allow cost reductions along the lines of open software development. With respect to copyright many challenges for content preservation and diffusion arise. This study addresses challenges and related policy issues with respect to both PSI and public sector content. It is a first review of the area of public sector information and content and it is proposed that follow-up work be carried out in this area, particularly on the economic and distributional aspects of different access, cost, pricing and distribution models for public sector information and content. (A bibliography is included. Selected examples of digital education institutions/projects, recommendations for online cultural content, and related abbreviations are annexed. Contains 7 figures, 17 boxes and 6 tables.)

The literature on employment growth in the United States and selected industrialized countries and the wage, benefits, and job security characteristics of new and existing jobs were analyzed to determine how job growth and quality in the United States during the 1980s and 1990s compares to that in other industrialized countries. Among the study's main findings were the following: (1) although job growth has been greater in the United States than in most other industrialized countries, only 20-30% of the differential in employment rates between the United States and European countries during the 1980s is accounted for by cross-country differences in unemployment rate trends; (2) not all groups benefited from the strong job growth in the United States in the 1980s (for example, rates of unemployment/labor force nonparticipation among less-educated prime-age men have increased significantly); (3) although a disproportionate number of new jobs were added in high-paying occupations in 1988-93, 20% of net new jobs were added in occupations at the bottom of the earnings distribution; and (4) the biggest deterioration in job quality in the United States has been due to deteriorating wages and benefits across a broad spectrum of new and existing jobs. (Contains 39 references.) (MN)

This paper investigates the strength of the wealth effect across countries. The author uses a variety of methods and finds evidence of significant wealth effects in the United Kingdom and Canada of a size similar to that in the United States, reflecting the importance of equities in aggregate household wealth in these countries. In Japan, a significant wealth effect is also evident, but since household wealth has changed little on balance in Japan in recent years, this channel has been less significant in explaining Japanese consumption growth in the second half of the 1990s. In the major continental European countries since 1995, equities remain a less important form of household wealth in most of these countries, and the consumption response to changes in wealth remains limited. In some smaller European countries where equity issuance is more frequent, the emerging evidence suggests that wealth effects may be more important. This working paper can be found at the United States Federal Reserve Board's International Finance Discussion Papers. You can access it by going to http://www.federalreserve.gov/pubs/ifdp/.