ABSTRACT

This chapter explains about the structure of income protection policies in the Organization for Economic Coordination and Development (OECD) countries, and the adverse employment side-effects that they may generate. It describes the nature of the income protection programs in OECD countries, describes the substantial differences among them in terms of the generosity and accessibility of support available. The chapter discusses the European Community countries with those of North America, neglecting important distinctions among the European countries. It summarizes the trends in employment, inequality, and the generosity and accessibility of social protection within the OECD countries. The chapter argues that those countries with the most accessible and generous systems also tend to have the slowest growth in employment, and the most serious poverty/joblessness traps. Many OECD countries have welfare program benefit levels that assure recipients of an income level around one-third to one-half of the median income level in the country.