1. Overview of recent developments in active inclusion in Europe Mark Pearson Head of Social Policy Division OECD www.oecd.org/els/social Vienna, 15 th May 2008

2. Record on employment is mixed…

3. …and poverty rates are up 0 2 4 6 8 10 12 14 16 18 Mid 1980s1990Mid 1990s2000Mid 2000 OECD <50% threshold EUR <60% threshold EUR<50%threshold OECD <60% threshold

4. Focusing on benefit levels is not going to solve poverty

5. What works in promoting inclusion? 1)Individualised and customised services 2)Rights and responsibilities 3)Making Work Pay 4)Getting a responsive public sector

6. Active inclusion needs: 1)individualised and customised services Not surprising that employment low when so many people receive so little help Unemployed: gold standard services Social assistance, lone parents and disability benefit recipients: second-best services

7. Active inclusion needs: 2)Well-defined rights and responsibilities Move to give people more clearly defined rights to social services and benefits Regional variations less common More help with job search, training This comes with greater responsibility to take advantage of opportunities

8. Active inclusion needs: 3)Making Work Pay Need a decent gap between incomes in and out of work Reductions in taxation of low paid in some countries RSA in France to simplify system “Better off” calculations

9. Active inclusion needs: 4)Better public sector delivery Too often just ‘pass the buck’ Too little focus on ‘hard’ cases Unified benefit and employment services in Norway, better co-operation in Finland; Hartz reforms in Germany

10. Conclusion Record on promoting active inclusion is mixed – some policy successes, but overall nothing to be proud of yet The policy formula for better success in welfare-to-work is known… …but we only get people into poor quality jobs.