Which barriers to supply labour and take up jobs need to be lifted?
Significant barriers to effective labour supply exist for older workers and second wage earners, in particular women. At present extended eligibility periods for unemployment benefits without obligation to search for a job for unemployed aged 58 and older serve as a channel into effective early retirement. From 2006 onwards the extended duration of unemployment insurance benefits for older unemployed will be cut significantly and older new unemployed will also be subject to job search requirement. While this marks substantial progress, significant age-related extensions of benefit duration and exemptions from job search requirements for the stock of older unemployed will remain. Second earners face larger average effective tax rates than single earners, mostly affecting women with full-time working partners. Households with dependent children find it difficult to reconcile work and family as long as proper child care facilities are lacking. The availability of free healthcare co-insura
