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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 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.]

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.)