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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.

This paper investigates how legal cannabis access affects student performance. Identification comes from an exceptional policy introduced in the city of Maastricht which discriminated legal access based on individuals' nationality. We apply a difference-in-difference approach using administrative panel data on over 54,000 course grades of local students enrolled at Maastricht University before and during the partial cannabis prohibition. We find that the academic performance of students who are no longer legally permitted to buy cannabis increases substantially. Grade improvements are driven by younger students, and the effects are stronger for women and low performers. In line with how THC consumption affects cognitive functioning, we find that performance gains are larger for courses that require more numerical/mathematical skills. We investigate the underlying channels using students' course evaluations and present suggestive evidence that performance gains are driven by improved understanding of material rather than changes in students' study effort. [This paper was produced as part of the Centre's Education Programme. The Centre for Economic Performance is financed by the Economic and Social Research Council.]

Over the past two decades, public higher education has become widely recognized for its contribution to socio-economic adjustment. This paper probes its evolution in two large and affluent democracies, the United States and Germany, whose higher education systems represent distinct ideal types. The analysis argues that public authorities in both countries have liberalized their systems to spur innovation in the provision of higher education. Yet a broad convergence in associated market expansion has coincided with divergence in its modes and consequences. Tracing how the two countries' policy regimes have created path-dependent trajectories of reform, the paper contends that the institutions associated with each state's inherited role in higher education--"enabling" in the US and "constitutive" in Germany--have empowered different social groups to shape state action. Under the influence of investors and managers, institutional drift and conversion have pushed public higher education toward corporatization in the United States. In contrast, interventions by faculty and students have moderated the effects of institutional displacement and layering on the German system's stratification. Given the sector's growing importance, this analysis carries important implications for the comparative study of capitalist evolution. [A bibliography is included.]

This study investigated how firms in Germany and Australia compare when dealing with the institutional arrangements for apprenticeship training in their countries, with particular attention given to factors which may impact on their training motivation. Apprenticeships are a well-established pathway to employment across many countries, with a particularly long and enduring history in Germany and Australia. Apprenticeships are characterised by a tripartite relationship between employer, apprentice, and training organisation. The available international literature suggests that the institutional framework for training in a country is an important determinant of a firm's motivation to provide training, and it influences their willingness to bear (at least part) of the training costs. Key messages from this study are: (1) Employers of trades' apprentices in both Germany and Australia appear to bear substantial costs for training their apprentices; (2) Institutional frameworks in Germany foster an investment model, a model which emphasises the benefits of employing apprentices after training, while in Australia some firms adopt more of a production (that is, substitution for "regular" workers) model of apprenticeship training, although there is a relatively strong investment motivation for trade firms in Australia; (3) For firms focused on the short-term costs and benefits of training, the withdrawal of some national government incentive payments in Australia has led to a weaker commitment to training, most evident in non-trade trainee places being offered; and (4) By contrast, firms training in trade occupations appear to be more investment-oriented and are more inclined to continue training, or employ an apprentice after training, even with the withdrawal of incentives. Tables and figures are appended.

This systematic review investigates the relevance of general pedagogical knowledge for successful teaching. It synthesises the empirical evidence of 10 769 teaching professionals and 853 452 students from primary to tertiary education in 21 countries. The meta-analysis of 20 quantitative studies revealed significant effects for teaching quality and student outcomes (Cohen's d = 0.64 and 0.26), indicating that more knowledgeable teachers achieve a three-month additional progress for students. The three themes emerging from 31 qualitative studies underline that general pedagogical knowledge is a crucial resource for teaching. Results also show that teaching requires knowledge about a range of topics, specific skills and other competences to transform knowledge into practice. Teachers need training and practical experience to acquire knowledge, which they apply according to the pedagogical situation at hand. The results allow for important conclusions for policy, practice and research.

This paper explores the impact of test-taking conditions on the quality of the Programme for the International Assessment of Adult Competencies (PIAAC) assessment. Interviewers record information about the room of assessment and interruptions that occurred during each interview. These observations, along with information on interviewer assignment size and a careful look at interviewer effects, provide insights into the quality of the assessment. This working paper first describes the variations in test-taking conditions among participating countries. Second, it examines interviewer assignment sizes and the frequency of interruptions, finding that both vary markedly among countries (contrary to the room of assessment). The paper then looks at the relationship between these variations and response rates and engagement measures. While neither the room of assessment nor the recorded interruptions impact quality differences among countries, interviewer assignment size and interviewer effects may have a mild impact on results.

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.

This report analyses how learning supports labour market transitions and career changes of adult workers across five countries (Denmark, Germany, Spain, France and Italy). To make the most of career and labour market opportunities, individuals have to rely on their own resources and their agency but also know how to navigate the institutional context. To make successful labour market transitions, individuals need to have a sense of direction, they need to learn about opportunities, and they need to learn skills. Education and training has a special role in supporting adult workers in their careers, providing them with the competences, qualifications and, in some cases, with the self-confidence needed for successful transition. Guidance services tailored to individual needs can help individuals find appropriate career trajectories in their search for suitable job opportunities, and can foster relational, emotional, cognitive and practical learning. [This report is the result of a team effort. Cedefop is grateful to Alan Brown, Jenny Bimrose and Barbara Merrill from the University of Warwick (Institute for Employment Research and Centre for Lifelong Learning) for coordinating the research teams and contributing to and editing project reports. The interviews were carried out and the country reports prepared by country teams: Massimo Tomassini from the Faculty of Education Science, University of Roma Tre and Silvia Zanazzi from the Faculty of Education Science, University of Roma La Sapienza (Italy); Rie Thomsen, Ida Juul and Pia Cort from Aarhus University (Denmark); Esther Oliver and Lena de Botton from the University of Barcelona and Itxaso Tellado from University of Vic (Spain); M'Hamed Dif from the University of Strasbourg (BETA-Céreq Alsace), Rachel Mulvey from the University of East London and Sophie Perdrix from the University of Lausanne (France); as well as Simone Haasler and Barbara Rinken from the University of Bremen (Germany). Cedefop experts Antje Barabasch and Giovanni Russo coordinated the study, under the supervision of the Head of Area Pascaline Descy, with a valuable contribution from Pedro Moreno Da Fonseca who reviewed this publication. The work was carried out under Cedefop's service contract No AO/RPA/GRUSSO-ABARA/Narrative learning transitions/015/11.]

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.

Numeracy and literacy skills have become increasingly important in modern labour markets. The large gender differences that several studies have identified have therefore sparked considerable attention among researchers and policy makers. Little is known about the moment in which such gaps emerge, how they evolve and if their evolution differs across countries. We use data from large-scale international assessments to follow representative samples of birth-cohorts over time, and analyse how gender gaps in numeracy and literacy evolve from age 10 to age 27. Our results suggest that, across the countries examined, males' advantage in numeracy is smallest at age 10 and largest at age 27. The growth in magnitude of the gender gap is particularly pronounced between the age of 15 and 27. Such evolution stands in sharp contrast with the evolution of the gender gap in literacy, which is small at age 10, large and in favour of females at age 15, and negligible by age 27.

This study uses the PIAAC data to examine the relationships between education system characteristics (e.g. early tracking and vocational education orientation) and distributions of adult numeracy skills. It also investigates the effects of postponing the tracking age and easing university access for students on a vocational track on the average skills and different percentiles of the skills distribution. Correlational analysis suggests that education systems with more students enrolled in vocational tracks have on average higher levels of numeracy skills and more compressed skills distributions between the 50th and 90th percentiles. Further analysis suggests that postponing the tracking age among 14 European countries does not have a significant effect on the average skills of the population. However, it increases skills for individuals at the 10th, 20th, and 30th percentiles of the skill distribution. Expanding university access is associated with an increase in numeracy skills, particularly for individuals at the bottom three deciles of the distribution.

It is well-known that there are large disparities in academic achievement between children of different socio-economic status (SES) backgrounds. This study examines the evolution of disparities in literacy skills between adults of different SES backgrounds. It compares countries' patterns in the evolution of disparities in literacy by SES background as cohorts age and asks which patterns of educational and labour force participation predict a narrowing rather than a widening of these disparities. Since there is no international longitudinal study of skills across the entire adult life span, this study uses three cross-sectional international adult studies (International Adult Literacy Survey, Adult Literacy and Lifeskills and Programme for the International Assessment of Adult Competencies) and matches birth years to create synthetic cohorts. Results indicate that there is large cross-national variation in the evolution of skills disparities associated with SES background. Disparities in literacy proficiency tend to widen when SES disparities in high school completion, professional and blue-collar employment increase. Disparities narrow when workers exit the labour force, a finding that is explained by the large inequalities in the employment experiences of individuals from different SES backgrounds, measured by differences in use of literacy skills at work. These results help to explain cross-national variation in the evolution of skills disparities by SES background, which has implications for policies aimed at closing skills gaps over the life course. [Funding from the OECD Thomas J. Alexander Fellowship Programme.]

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.]

A strong VET system is increasingly seen as essential to overcoming the current economic crisis in Europe. VET is seen as a powerful tool to assist in balancing labour market inefficiencies, increasing youth employment possibilities, and reducing skills mismatch. Its inherent flexibility and closeness to the labour market place VET in a good position to contribute to a faster economic recovery and long-term sustainable development. However, crucial for this role is continuous and systematic VET renewal that assures its relevance for the labour market. This publication explores 15 European national approaches to feedback mechanisms between VET and the labour market. It illustrates the diversity of solutions currently applied across Europe and how they are embedded in national traditions and education philosophy. The study asks three fundamental questions: how inclusive are national mechanisms for feedback between the VET system and the labour market; how responsive are existing mechanisms; and how transparent? Three annexes provide: (1) Case Studies; (2) List of interviewees; and (3) List of experts responsible for the country overviews. Bibliography and references are included. [This paper is the result of a team effort reflecting the work of a research consortium led by Jörg Markowitsch from 3s Research Laboratory who together with Tanja Bacher, Carol Costley, David Etherington, Gerhard Geiger, Günter Hefler, Jelena Helemäe, Triin Roosalu, Ellu Saar, Auni Tamm, and Odd Bjørn Ure conducted the research and fieldwork and drafted the report. This work was carried out under Cedefop's service contract No 2011-0161/AO/ECVL/JB-IPS/Cooperation Labour market--VET/007/11.]

This discussion paper presents an overview of key concepts, trends and issues in the field of Technical and Vocational Education and Training (TVET) for sustainable development. It examines interlinkages between the world of work and environmental, social and economic aspects of sustainable development, as well as ways in which TVET can be reoriented to advance the transition to a more sustainable future. This paper is the result of collective brainstorming and was prepared in consultation with a number of UNEVOC Centres, partner agencies and several leading researchers, policy-makers and practitioners working in the field of TVET. It reflects the outcomes of discussions that took place at the UNESCO International Experts Meeting "Learning for Work, Citizenship and Sustainability" (Bonn, Germany, 2004) on the threshold of the United Nations Decade of Education for Sustainable Development, for which UNESCO is the lead agency. This paper appears as the first volume in the Discussion Paper Series, which is part of the UNEVOC International Library of TVET--an extensive publications programme prepared by the UNESCO-UNEVOC International Centre for Technical and Vocational Education and Training. Annexes include: (1) The Bonn Declaration; and (2) Suggestions to UNESCO for action planning in TVET for sustainable development during the United Nations Decade of Education for sustainable development. (Contains 53 footnotes.) [For Volume 2 of the UNESCO-UNEVOC Discussion Paper Series, "The Development of a National System of Vocational Qualifications," see ED495379.]

This paper examines the determinants and consequences of immigrant/linguistic concentrations (enclaves), discussing reasons for the formation of those concentrations. It develops hypotheses regarding "ethnic goods" (market and non-market goods and services consumed by members of an immigrant/ethnic group that are not consumed by others), the effect of concentrations on immigrants' language skills, and the effect on immigrant earnings of destination language skills and linguistic concentration. These hypotheses are tested using the 1990 U.S. Census Public Use Microdata Sample data on adult male immigrants from non-English speaking countries. Results indicate that linguistic concentrations reduce immigrants' English language skills. Immigrants' annual earnings increase with proficiency in the destination language and with skill level (schooling, experience, and duration in the United States) and number of weeks worked. Annual earnings are higher among married men, men living in urban areas outside the south, men who are citizens, and men who are not black. Overall, the results suggest that enclaves impact immigrant adjustment. (Contains 17 references.) (Adjunct ERIC Clearinghouse for ESL Literacy Education) (SM)

This paper explores the conceptual underpinnings of the routine disrespect shown to young children in everyday life in cultures around the world. General Comment 7 of the Committee on the Rights of the Child urges that the youngest children should be respected as persons in their own right, within an environment of reliable and affectionate relationships based on respect and understanding. This paper examines two case studies, from Germany and Israel, to show what such environments look like on the ground. A bibliography is included. (Contains 6 footnotes.)

In developed countries, obesity tends to be associated with worse labor market outcomes. One possible reason is that obesity leads to less human capital formation early in life. This paper investigates the association between obesity and the developmental functioning of children at younger ages (2-4 years) than ever previously examined. Data from the German Socio-Economic Panel Study are used to estimate models of developmental functioning in four critical areas (verbal skills, activities of daily living, motor skills, and social skills) as a function of various measures of weight (including BMI and obesity status) controlling for various child and family characteristics. The findings indicate that, among boys, obesity is a significant risk factor for lagged development in verbal skills, social skills, and activities of daily living. Among girls, weight generally does not have a statistically significant association with these developmental outcomes. Further investigations show that the correlations exist even for those preschool children who spend no time in day care, which implies that the correlation between obesity and developmental functioning cannot be due solely to discrimination by teachers, classmates, or day care providers. Full text (English translation) of the SOEP questions that were used to create the measures of developmental functioning used in this paper is appended. (Contains 4 tables and 1 footnote.)

Starting in 2009, the German state of Saxony distributed sports club membership vouchers among all 33,000 third graders in the state. The policy's objective was to encourage them to develop a long-term habit of exercising. In 2018, we carried out a large register-based survey among several cohorts in Saxony and two neighboring states. Our difference-indifferences estimations show that, even after a decade, awareness of the voucher program was significantly higher in the treatment group. We also find that youth received and redeemed the vouchers. However, we do not find significant short- or long-term effects on sports club membership, physical activity, overweightness, or motor skills.

There is an extensive literature on the productivity of universities. Little is known, however, about how different types of leaders affect a university's performance. To address this question, this paper blends quantitative and qualitative evidence. First, I establish that the best universities in the world are led by respected scholars. Next, by constructing a new longitudinal dataset, I show that the research quality of a university improves some years after it appoints a president (or vice chancellor) who is an accomplished researcher. To try to explain why scholar-leaders might improve the research performance of their institutions, I draw from interview data with twenty-six university heads in the United States and United Kingdom. These findings have policy implications for governments, universities, and a range of research and knowledge-intensive organizations. (Contains 7 figures and 27 footnotes.)

The paper examines between-country differences in the mechanisms through which education could promote generalised trust using data from 29 countries participating in the OECD's Survey of Adult Skills (PIAAC). Results indicate that education is strongly associated with generalised trust and that a large part of this association is mediated by individuals' literacy skills, income and occupational prestige. However, education gradients in levels of generalised trust and in the extent to which they are due to social stratification mechanisms or cognitive skills mechanisms vary across countries. Differences across countries in birthplace diversity and income inequality are correlated with how strongly education is associated with trust in different countries, as well as in the relative magnitude of direct and indirect associations. In particular, the relationship between literacy skills and generalised trust is stronger in the presence of greater birthplace diversity but is weaker in the presence of greater income inequality.

The ways in which children learn a language--be it their mother tongue or their second language--can have a strong influence on their success in school. Researchers in linguistics and early child development have tried to determine the factors that can help and hinder language acquisition in young children, with some conflicting results. In this article, the author reviews the research and existing theories on language development, focusing on how pre-schoolers' social environment affects their ability to learn languages and their subsequent reading and writing skills. Because children from immigrant families and those with a low socio-economic status often have difficulty with language acquisition, this review looks in particular at language development initiatives for disadvantaged groups in daycare settings. Beginning with an overview of theories on language development, the author examines the sometimes-conflicting hypotheses that attempt to explain how children acquire their first language and how some become bilingual. Next, the role of the social environment is reviewed, beginning with the importance of verbal input for first language development, then looking at the complex phenomenon of second language acquisition. The author provides an overview of research on bilingualism and its various forms, focussing on children who learn a second language after they are already established in their mother tongue, as opposed to the less common cases of children who acquire two languages from birth. Looking in particular at research on migrant children, the paper explores the course and duration of second language acquisition, as well as the common linguistic behaviours that may arise. Conditions that influence children's adoption of a second language and culture are then examined, as well as similarities and differences between first and second language acquisition. Factors that influence the development of a second language such as age, motivation, interaction, educational style, socio-economic status, and experiences in daycare are discussed, and the impact of early language development on school success is examined. Finally, the author reviews several programmes aimed at fostering language development and literacy in infancy and early childhood in the United Kingdom, the United States, and Germany, and concludes with a discussion of the implications of the research, providing several recommendations for practice. A glossary is included. (Contains 24 footnotes.)

Children face many important changes in the first eight years of life, including different learning centres, social groups, roles and expectations. Their ability to adapt to such a dynamic and evolving environment directly affects their sense of identity and status within their community over the short and long term. In particular, the key turning points in children's lives--such as "graduating" from kindergarten to primary school or going through a culturally specific rite of passage--provide challenges and opportunities for learning and growth on multiple levels. This paper provides a review of the major perspectives in research on early childhood transitions and reveals the predominant areas of focus in both academic and professional studies, as well as important neglected viewpoints and study populations. Beginning with a broad and inclusive definition of the topic, the authors provide an overview of early childhood transitions research, highlighting the underlying assumptions that informed the studies. They assess concepts in the developmental theory that preceded transitions research as well as in the logic that determines how transitions are structured. More recent approaches are examined, including systems theories and the role of children as active participants in transitions. Several examples in this review show how multidisciplinary collaboration and culturally sensitive interventions can result in better participation of both parents and children in crucial early childhood transitions. Citing the need to harmonise early childhood education and care programmes with local education practices, the authors stress the value of greater transparency in the creation of policy and programming for children, in order to identify potentially limiting assumptions. Broadening and diversifying perspectives on transitions can lead to more integrated and culturally relevant rights-based early childhood programmes worldwide. A glossary and a bibliography are included. (Contains 7 footnotes.)

Within the last 50 years, the work-family-household arrangements upon which social policy systems in industrial nations were formulated have disappeared. This briefing paper examines how social policies of the United States, Japan, Germany, Italy, and France have responded. The paper is presented in two major sections. The first section describes family policies in each country concerning parental leave, child benefits/family allowances, child care, marriage/cohabitation, and divorce. The second section discusses the mixed effects of maternity leave on womens employment, the lack of a relationship between fertility and maternity leave and fertility and cash benefits, and factors that complicate the relationship between countries' social spending and child poverty. Job-protected maternity leave is described as the most basic entitlement reflecting public acknowledgment of the economic necessity of working motherhood. Analyses suggest that fertility rates do not seem responsive to cash benefits or other policies, such as extended maternity leave, that function as wages for motherhood. In countries where child care provisions are not widely available, lengthy paid leaves have the effect of bringing women into the home for long periods of time. The most important role of cash benefits is to reduce child poverty, as illustrated by patterns in the U.S., France, and Germany. The paper concludes by asserting that Western European nations family policy can be divided into two types, one in which the social welfare system provides a comprehensive array of universal family benefits and services, and the other in which benefits are nonuniversal and accompanied by higher child poverty rates. The United States fits neither of the European patterns and is characterized by several contradictions contributing to the lack of political support for families. (Contains 98 references.) (KB)

This paper investigates the impact of English as an international language on the German language and society. Even though English has influenced German linguistically for many years, the growing importance of English as a global language, and the increasingly dominant lingua franca in Europe, has drastically increased the presence of English in many domains of German life. This paper examines the role of English in contemporary German society, its impact on the German language, and attitudes toward English and the language change attributed to the influence of English. It concludes that, even though English has no official status in Germany, it plays an important role in many domains and is actively and passively used by many Germans. English has high prestige because it is considered a vital precondition for economic success. It is offered to most elementary school children at ever-younger ages as their first foreign language. English also serves as cultural identification in contemporary Germany. It is viewed as a symbol of internationalism and signals a new German identity that breaks with a nationalist past. German, like other languages, is undergoing rapid language change in response to fast technological, economic, and social change globally. An appendix presents examples of transference from English. (Contains 19 references.) (SM)

We assess the relationship between general literacy skills and health status by analysing data from the Programme for the International Assessment of Adult Competencies (PIAAC), an international survey of about 250,000 adults aged 16-65 years conducted by the Organisation for Economic Co-operation and Development (OECD) from 2011-15 in 33 countries/national sub-regions. Across countries, there seems to be a strong and consistent association between general literacy proficiency and self-rated poor health, independent of prior socio-economic status and income. General literacy proficiency also appears to be a mediator of the association between self-education and self-rated poor health. While the literacy-health association is robust over time, it varies in magnitude across countries. It is strongest for those with a tertiary or higher degree and does not appear to exist among young adults (ages 25 to 34 years). Future studies are required to understand the contextual factors that modify the general literacy proficiency-health association.

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.)