Summary: Fiscal Policy Reforms to Increase Labor Force Participation1
|Advanced Economies||Emerging Economies|
|Reduce the labor tax wedge||Austria, Belgium, Estonia, Finland, France, Germany, Greece, Italy, and Sweden||Colombia, Egypt, Hungary, Latvia, Lithuania, and Romania|
|Expand the use of individual accounts for social insurance benefits||Most emerging economies|
|Reduce the secondary earner tax wedge2||Austria, Belgium, Czech Republic, France, Germany, Italy, and Slovak Republic||Hungary and Turkey|
|Increase child care subsidies||Austria, Ireland, Japan, Korea, Portugal, Slovak Republic, and United States|
|Reform child support||Condition child support on labor force participation||Many advanced economies||Most emerging economies|
|Reduce the duration of paid parental leave||Austria, Czech Republic, Estonia, Finland, France, Germany, Norway, Slovak Republic, and Sweden||Bulgaria, Hungary, Kazakhstan, and Poland|
|Increase effective retirement ages||Many advanced economies||Most emerging economies|
|Reform pension systems||Adjust pension benefits to the actuarially fair levels||Belgium, Germany, Norway, and Slovenia||India and Mexico|
|Expand social pensions for low-income workers, financed through general revenues rather than increasing the tax wedge||India, Indonesia, and Thailand|
|Strengthen medical assessment rules||Australia, Denmark, Finland, Germany, Ireland, New Zealand, Norway, Sweden, United Kingdom, and United States|
|Tougher rules for disability pensions and greater allowance for partial disability||Greater emphasis on linking benefits to work capacity of claimants||Austria, Belgium, Czech Republic, Finland, Germany, Netherlands, Portugal, Slovak Republic, Spain, and Sweden||Mexico and Poland|
|Strengthen work incentives and support||Czech Republic, Greece, Ireland, Italy, Korea, New Zealand, Portugal, Slovak Republic, and United States||Mexico|
For countries with male labor force participation rate lower than 85 percent.
For countries with female labor force participation rate lower than 70 percent.