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Chartbook of International Labor Comparisons: The Americas, Asia/ Pacific, Europe Abstract [Excerpt] This chartbook focuses on the labor market situation in selected countries in the 1996-26 period. Charts in sections 1 through 4 and section 6 include countries in North America (the United States, Canada, and Mexico) and selected Asian-Pacific and European economies. Weighted aggregates for 15 European Union countries (EU-15) are shown on most charts. These represent European Union member countries prior to the expansion of the European Union to 25 countries on May 1, 24 and to 27 countries on January 1, 27. The EU-15 countries are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. It should be noted that the selected economies are not representative of all of Europe and the Asian-Pacific region; rather, they tend to be the more industrialized economies in these regions. In section 5, several indicators are presented for five large emerging economies: Brazil, China, India, Indonesia, and the Russian Federation. Due to the lack of suitable data, some of the countries do not appear on all charts. The appendix describes the definitions, sources, and methods used to compile the data in the chartbook. For some series, the appendix provides cautions about the exact comparability of the measures. Keywords labor markets, Europe, Asia, Americas, economy, data, statistics, economic growth, globalization Comments Suggested Citation U.S. Department of Labor (28). A chartbook of international labor comparisons: The Americas, Asia/Pacific, Europe. Washington, DC: Author. http://digitalcommons.ilr.cornell.edu/key_workplace/484/ This article is available at DigitalCommons@ILR: http://digitalcommons.ilr.cornell.edu/key_workplace/484
A CHARTBOOK OF INTERNATIONAL LABOR COMPARISONS: THE AMERICAS ASIA-PACIFIC ACIFIC EUROPE U.S. DEPARTMENT OF LABOR JANUARY 28
Material contained in this document is in the public domain and may be reproduced, fully or partially, without permission of the Federal Government. Source credit is requested. This document is available on the Internet at: http://www.dol.gov/asp/welcome.html.
A CHARTBOOK OF INTERNATIONAL LABOR COMPARISONS: THE AMERICAS ASIA-PACIFICACIFIC EUROPE U.S. DEPARTMENT OF LABOR JANUARY 28
FOREWORD All countries have unique cultures, histories, economies, and challenges. Yet despite these differences, the economies of the world are becoming increasingly interrelated as technology and world trade grow. As a result, local economies are increasingly affected by changes in worldwide markets. For the United States to continue to succeed in the global economy and create more jobs at home, it is important to understand the economic relationships that are transforming the world. U.S. workers have long enjoyed one of the highest standards of living in the world thanks to technology, the flexibility of our nation s workforce, and the remarkable productivity of America s workers. To preserve these advantages, it is critical that U.S. workers have the skills necessary to compete in the worldwide economy of the 21st century. As the charts reveal, the United States leads in some areas. In other cases, our nation s trading partners have made great progress. This information provides a snapshot of where the United States stands today in relation to key economies of the rest of the world. It can assist policy and decision makers in charting a course that will help prepare our nation s workforce for the challenges of tomorrow. I hope you find this Chartbook both relevant and informative. Elaine L. Chao Secretary of Labor By understanding how the United States compares with other advanced and emerging economies, our nation will be better prepared to take the steps necessary to ensure that America s workforce and America s economy continue to thrive and prosper. Therefore, this Chartbook of International Labor Comparisons provides a comparative labor market perspective including employment levels, jobless rates, hours worked, labor costs, and productivity trends. ii Foreword
PREFACE This chartbook focuses on the labor market situation in selected countries in the 1996-26 period. Charts in sections 1 through 4 and section 6 include countries in North America (the United States, Canada, and Mexico) and selected Asian-Pacific and European economies. Weighted aggregates for 15 European Union countries (EU-15) are shown on most charts. These represent European Union member countries prior to the expansion of the European Union to 25 countries on May 1, 24 and to 27 countries on January 1, 27. The EU-15 countries are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. It should be noted that the selected economies are not representative of all of Europe and the Asian-Pacific region; rather, they tend to be the more industrialized economies in these regions. In section 5, several indicators are presented for five large emerging economies: Brazil, China, India, Indonesia, and the Russian Federation. Due to the lack of suitable data, some of the countries do not appear on all charts. The appendix describes the definitions, sources, and methods used to compile the data in the chartbook. For some series, the appendix provides cautions about the exact comparability of the measures. Section 1, on Gross Domestic Product (GDP) per capita, shows charts that portray overall measures of comparative living standards. Section 2 highlights the state of the labor market by comparing major labor force, employment, and unemployment indicators. Section 3 examines the competitive position of the United States in the global marketplace by comparing hourly compensation costs in manufacturing, trends in manufacturing labor productivity and unit labor costs, and manufacturing output as a percent of world manufacturing output. Section 4 includes charts that compare public expenditures on labor market programs, regulation measures on labor and product markets, taxes on labor, and foreign trade in goods. Section 5 presents nine charts on various topics for large emerging economies. In section 6, this edition presents charts on disability indicators. This is the first of a series of one-time supplemental sections that highlight topics of particular interest, but with occasional data availability. The charts are color coded as follows: North American countries are blue, Asian-Pacific economies are red, and European countries are yellow. A different color scheme is used, however, when there is more than one chart-bar per country, and additional colors are used for the emerging economies charts in section 5. The chartbook was a cooperative effort of three agencies in the Department of Labor: the Bureau of International Labor Affairs (ILAB), the Office of the Assistant Secretary for Policy (OASP), and the Bureau of Labor Statistics (BLS). Since 196, BLS has adjusted selected labor market data of foreign countries to improve their comparability with U.S. data. The chartbook is representative of the main output of the BLS program of international labor comparisons. In order to increase country and indicator coverage, BLS data are supplemented by data from the Organization for Economic Cooperation and Development (OECD) and other international organizations. A team led by Marie-Claire Sodergren of the BLS Division of Foreign Labor Statistics (DFLS) in cooperation with Kenneth Swinnerton and Sarah Gormly of the ILAB Division of Economic and Labor Research prepared the chartbook. The following persons comprised the BLS team: Apinait Amranand, Aaron Cobet, Rich Esposito, Susan Fleck, Mubarka Haq, Wolodar Lysko, Jennifer Raynor, and Chris Sparks. Constance Sorrentino, Chief of DFLS, and Ronald Bird and Stephanie Swirsky of OASP provided overall guidance. Preface iii
CONTENTS Section 1. Gross Domestic Product Per Capita 1 1.1 Gross Domestic Product (GDP) per capita, 26 2 1.2 Average annual growth rates for real GDP per capita, 1996-26 3 Section 2. Labor Market Indicators 5 2.1 Size of the labor force, 26 6 2.2 Average annual growth rates for the labor force, 1996-26 7 2.3 Labor force participation rates by sex, 26 8 2.4 Labor force participation rates for youth, 26 9 2.5 Labor force participation rates for older workers, 26 1 2.6 Employment as a percent of the working-age population, 26 11 2.7 Average annual growth rates for employment, 1996-26 12 2.8 Average annual growth rates for full-time and part-time employment, 1996-26 13 2.9 Annual hours worked per employed person, 1996 and 26 14 2.1 Unemployment rates, 26 15 2.11 Unemployment rates for youth, 26 16 2.12 Ratio of youth to adult unemployment rates, 26 17 2.13 Persons unemployed one year or longer, 26 18 2.14 Ratio of unemployment rate of persons without high school degrees to that of persons with college or university degrees, 25 19 2.15 Educational attainment of the adult population, 25 2 Section 3. Competitiveness Indicators for Manufacturing 21 3.1 Hourly compensation costs, 25 22 3.2 Average annual growth rates for hourly compensation costs, 1995-25 23 3.3 Employer social insurance expenditures and other labor taxes as a percent of hourly compensation costs, 25 24 3.4 Average annual growth rates for manufacturing productivity, 1996-26 25 3.5 Average annual growth rates for manufacturing output and hours worked, 1996-26 26 3.6 Average annual growth rates for manufacturing unit labor costs in U.S. dollars, 1996-26 27 3.7 Manufacturing output as a percent of world manufacturing output, 26 28 Section 4. Other Economic Indicators 29 4.1 Public expenditures on labor market programs as a percent of GDP, 25-6 3 4.2 Measures of regulation on labor and product markets, 23 31 4.3 Share of labor costs taken by tax and social security contributions, 26 32 4.4 Dependency ratios, 25 and projections to 225 33 4.5 Trade in goods as a percent of GDP, 25 34 iv Contents
Section 5. Indicators for Large Emerging Economies 35 5.1 World population distribution, 25 36 5.2 Age composition of the population, 25 37 5.3 Dependency ratios, 25 and projections to 225 38 5.4 GDP per capita, 25 39 5.5 GDP per employed person, 1996 and 25 4 5.6 Labor force participation rates by age, 26 41 5.7 Employment as a percent of the working-age population by sex, 26 42 5.8 Trade in goods as a percent of GDP, 25 43 5.9 Manufacturing output as a percent of world manufacturing output, 26 44 Section 6. Disability indicators 45 6.1 Persons with disabilities as a percent of the working-age population 6.2 Employment as a percent of the working-age population 47 6.3 Persons receiving disability benefits as a percent of the working-age population, 199 and 1999 48 6.4 Labor market status of persons receiving disability benefits 49 46 Appendix. Definitions, Sources, and Methods A1 Contents v
SECTION 1 Gross Domestic Product Per Capita Gross Domestic Product (GDP) per capita, when converted to U.S. dollars using Purchasing Power Parities (PPPs), is the most widely used income measure for international comparisons of living standards. It should be recognized that income measures do not capture a number of variables affecting economic well-being, such as leisure time, health, safety, and cultural resources. PPPs are the number of foreign currency units required to buy goods and services in a foreign country equivalent to what can be bought with one dollar in the United States. These are used to equalize the purchasing power of different currencies. PPPs are used instead of exchange rates because market exchange rates do not necessarily reflect the relative purchasing power of different currencies. Charts 1.1 and 1.2 compare the level of GDP per capita in 26 and the trend from 1996 to 26 in 21 of the 22 economies shown on various charts in this chartbook. Data for the EU-15 are also included. Data were not available for charting GDP per capita for Taiwan. Gross Domestic Product Per Capita 1
CHART 1.1 Gross Domestic Product (GDP) per capita, 26 converted at PPP rates Norway, the United States, and Ireland were the countries with the highest GDP per capita. The other economies showed levels of GDP per capita between 86 percent (Hong Kong SAR) and 26 percent (Mexico) of the U.S. level. Thousands of U.S. dollars 6 53.1 5 44.2 41.9 4 3 35.9 35. 38.1 31.9 23.6 26.7 32.7 32.2 36.1 36. 31.7 32. 29.3 37.1 21.9 28.2 34. 34.6 2 1 11.5 U.S. Canada Mexico Australia Hong Kong SAR Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: Hong Kong SAR stands for Hong Kong Special Administrative Region of China. Purchasing Power Parity (PPP) is the number of foreign currency units required to buy goods and services in a foreign country equivalent to what can be bought with one dollar in the United States. SOURCE: Bureau of Labor Statistics and World Bank. 2 Gross Domestic Product Per Capita
CHART 1.2 Average annual growth rates for real GDP per capita, 1996-26 In most of the 21 economies, real GDP per capita grew during the decade at an average rate of 1.4 to 2.8 percent per year; the U.S. growth rate was in the middle of the range, at 2.1 percent per year. Ireland registered the greatest increase in real GDP per capita, by far, followed by the Republic of Korea, Hong Kong SAR, and Singapore; Japan and Italy had the smallest increases. Percent 6 5.5 5 4 3 2 1 2.1 2.5 2.4 2.3 3.5.9 3.7 1.8 3.1 1.8 1.8 1.8 1.7 1.4 1.1 2. 2.1 1.5 2.5 2.8 2.4 U.S. Canada Mexico Australia Hong Kong SAR Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: Hong Kong SAR stands for Hong Kong Special Administrative Region of China. SOURCE: Bureau of Labor Statistics, including special tabulations using data from the Organization for Economic Cooperation and Development, World Bank, and national sources. Gross Domestic Product Per Capita 3
SECTION 2 Labor Market Indicators Charts 2.1 through 2.15 show comparisons of the labor force, employment, unemployment, and related indicators. The size of the labor force is shown in chart 2.1. Labor force growth (chart 2.2) sums up changes in both employment and unemployment over the period. Labor force participation rates (charts 2.3-2.5) express the extent to which different groups are either working or unemployed. Here comparisons are shown by sex and for four selected age groups relating to youth and older workers. Employment and unemployment are key indicators of the functioning of labor markets both within and among countries. Charts 2.6-2.9 compare the proportion of the working-age population employed, employment growth rates, trends in fulltime and part-time employment, and annual hours worked per employed person. Charts 2.1-2.15 explore unemployment rates, long-duration unemployment, and the connection between unemployment rates and levels of education. All charts cover 19 or 2 countries. In addition, the EU-15 is shown on all but three of the charts. Comparative labor market indicators were not available for Taiwan or Hong Kong SAR, and some indicators were not available for Singapore. Labor Market Indicators 5
CHART 2.1 Size of the labor force, 26 The U.S. labor force was the largest, by far. The EU-15 countries combined had a larger labor force than the United States. Millions 2 182. 16 151.4 12 8 66. 4 U.S. 43.2 24. 17.4 1.7 2.2 2.2 Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 41.3 27.2 4.1 2.9 2.1 Austria Denmark France Germany Ireland 24.4 21.5 8.4 2.4 5.6 4.7 Italy Netherlands Norway Portugal Spain Sweden 3.5 U.K. NOTE: 25 for the EU-15. 24 for Singapore. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. 6 Labor Market Indicators
CHART 2.2 Average annual growth rates for the labor force, 1996-26 U.S. labor force growth outpaced that of the EU-15 average; in Europe, labor force growth was stronger in Ireland, Spain, and Portugal than in the United States. Singapore, the other North American countries, New Zealand, and Australia also recorded higher labor force growth rates than the United States. Percent 4 3.4 3 2.5 2.7 2 1.7 2. 1.6 1.7 1.6 1 1.2 1.2.9.7.3.9.5.7 1.2.9.6.8 -.1-1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 1996-25 for the EU-15. 1996-24 for Singapore. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. Labor Market Indicators 7
CHART 2.3 Labor force participation rates by sex, 26 Across countries, women s labor force participation rates varied more than men s rates. In Canada, the Scandinavian countries, New Zealand, and Australia, women participated in the labor force at about the same high rate as U.S. women. Italian and Mexican women had the lowest participation rates. Participation rates for men were at least 7 percent in 12 out of 2 countries; the lowest rates for men were found in Italy and France. Percent Men Women 1 8 6 4 77. 73.5 72.8 62.1 59.4 42.9 73. 73. 71.5 58.4 5.6 47.9 74.9 76.2 6.7 54.9 66.7 64.6 51.9 48.7 7.4 6.8 62.4 5.9 65.7 51.2 72.7 52.5 6.6 38.1 71.1 69.5 69.5 67.8 6.3 56.4 55.8 47. 69.3 6.8 7.9 56.7 2 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 25 for the EU-15. 24 for Singapore. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. 8 Labor Market Indicators
CHART 2.4 Labor force participation rates for youth, 26 Labor force participation rates varied widely for teenagers, ranging from 7.5 percent (the Republic of Korea) to 59.9 percent (Australia). Persons ages 2 to 24 participated in the labor market to a much greater extent than teenagers, with the highest participation rates in Australia and the Netherlands. Percent Persons ages 15 or 16 to 19 1 75 5 25 53.7 43.7 U.S. Canada Mexico 59.9 54.8 59.8 43.3 36.5 28.7 3.4 26.6 16.5 7.5 12.4 Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland 58.6 55.3 43.2 39.1 29.3 11.8 17.7 Italy Netherlands Norway Portugal Spain Sweden U.K. Percent Persons ages 2 to 24 1 75 5 25 74.6 78.6 82.1 76.1 74.5 79.4 7.8 74.4 8.1 69.6 74.6 65.5 67.9 71.2 61.3 63.1 54.6 54.4 51.6 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. 76. SOURCE: Organization for Economic Cooperation and Development. Labor Market Indicators 9
CHART 2.5 Labor force participation rates for older workers, 26 Persons ages 55 to 64 participated in the labor market far less in Italy and Austria than in the remaining countries. Participation rates for persons ages 65 and over varied widely from 1.1 percent (France) to about 3 percent (the Republic of Korea and Mexico); the U.S. rate was nearly four times higher than the EU-15 average. Percent Persons ages 55 to 64 1 63.7 67.3 71.8 75 58.7 55.9 57.5 6.7 63.2 48.8 36.8 43.6 5 55.3 54.7 25 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland 68.2 73. 49.1 53.4 46.8 33.4 Italy Netherlands Norway Portugal Spain Sweden 59.1 U.K. Percent 1 75 5 29. 25 15.4 8.2 U.S. Canada Mexico Australia Persons ages 65 and over 3.5 19.8 7.9 12.7 4. 3.6 5.2 1.1 3.5 8.7 14. 18. 3.3 4.6 1.3 2.1 6.9 Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. SOURCE: Organization for Economic Cooperation and Development. 1 Labor Market Indicators
CHART 2.6 Employment as a percent of the working-age population, 26 New Zealand, Canada, and the United States had the highest percentages of the working-age population employed. In Italy, less than half of the working-age population was employed. Percent 1 8 6 63.1 63.6 57.5 62.5 57.5 58.9 65. 61.8 51.7 56.2 62.8 5.9 52.2 59.8 45.5 61. 62.6 57.5 52.3 6.4 6. 4 2 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 25 for the EU-15. 24 for Singapore. The working-age population is defined as persons ages 15 or 16 and over. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. Labor Market Indicators 11
CHART 2.7 Average annual growth rates for employment, 1996-26 Spain and Ireland had the highest growth rates in employment. Employment declined only in Japan. U.S. employment growth, although identical to the EU-15 average, outpaced that of 8 of the 12 European countries; the remaining countries recorded higher employment growth than the United States, except for Japan and the Republic of Korea. Percent 5 4 4.3 4.4 3 2 1 1.3 2.1 2.3 2. 1.1 1.9 2.2 1.3.6.6 1.1.4 1.2 1.4 1.1 1.5 1. 1.1 -.2-1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 1996-25 for the EU-15. 1996-24 for Singapore. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. 12 Labor Market Indicators
CHART 2.8 Average annual growth rates for full-time and part-time employment, 1996-26 Full-time employment grew faster than part-time employment in six countries, including the United States. Average annual growth rates for full-time employment were highest in Spain, followed by Ireland, Mexico, and Canada. Percent Full-time Part-time 11 9 8.4 8.1 7 6.7 5 3 1 1.5.3 2.2 1.5 2.4 2.5 2.7 1.7.9.5 1.9 1.6.7 2.9 5.1.4 1.4 1..4 4.4 2.5.6 4.7 3.8.9 1.1.8 1.5 1.5 3.5 1.1..7.4-1 -.6 -.4 -.5-3 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 1996-24 for Mexico. Full-time employment is defined as persons usually working over 3 hours per week in their main job. U.S. data refer to wage and salary workers only. Data for other countries refer to total employment, which includes wage and salary workers, self-employed persons, and unpaid family workers. SOURCE: Organization for Economic Cooperation and Development. Labor Market Indicators 13
CHART 2.9 Annual hours worked per employed person, 1996 and 26 In both years, Koreans worked the most hours annually. The Republic of Korea and Ireland experienced the largest reductions in annual hours worked per employed person. Hours 1996 26 3 2648 235 184 184 1784 1738 192 1883 1777 1714 1892 1784 1833 1787 1664 1655 1495 1577 1655 1564 1518 1436 1882 164 1873 18 1421 1391 1483 147 1848 1758 1811 1764 1635 1583 1742 1669 2 1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. SOURCE: Organization for Economic Cooperation and Development. 14 Labor Market Indicators
CHART 2.1 Unemployment rates, 26 Most of the European countries had higher unemployment rates than the United States. The Republic of Korea, Norway, and Mexico had the lowest unemployment rates. Percent 12 1 9.7 1.4 8.5 8 7.4 6.9 7.7 7. 6 4 4.6 5.5 3.6 4.8 4.2 3.5 3.8 4.8 4.7 3.9 4.4 4.4 3.5 5.5 2 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 24 for Singapore. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. Labor Market Indicators 15
CHART 2.11 Unemployment rates for youth, 26 Italian teenagers had the highest unemployment rate, followed by their counterparts in Sweden and France. Unemployment rates for teenagers were higher than those for 2- to 24-year-olds in all countries. Percent Persons ages 15 or 16 to 19 Persons ages 2 to 24 4 3 3.9 33.2 25.5 29. 31.1 2 1 15.4 14.8 8.2 8.2 6.8 5.7 14.7 6.7 1.7 9.6 9.9 7.8 13.7 6.4 2. 19.7 14.6 11.9 1.4 7.5 6.3 5.3 22.1 14.2 13.7 11.8 7.3 19.6 1.1 5.2 11.6 6.8 14.1 14.8 2.3 16.8 1.5 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 24 for Singapore. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. 16 Labor Market Indicators
CHART 2.12 Ratio of youth to adult unemployment rates, 26 In most countries, unemployment rates were two to three times higher for youth than for adults. The ratios of youth to adult unemployment rates were highest in Sweden, New Zealand, and Italy. The ratio was lowest in Germany. Ratio 5 4 3 2 2.9 2.3 2.6 2.8 2.1 3.5 3.9 2. 2.4 2.2 2.3 3. 1.4 2.3 3.9 1.9 3.3 2.4 2.5 4.3 3.7 1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 24 for Singapore. Youth are defined as persons ages 15 or 16 to 24. Adults are defined as persons ages 25 and over. SOURCE: Bureau of Labor Statistics, Organization for Economic Cooperation and Development, and International Labor Office. Labor Market Indicators 17
CHART 2.13 Persons unemployed one year or longer, 26 as a percent of total unemployment Long-duration unemployment was least prevalent in the Republic of Korea and Mexico. The EU-15 countries combined had a relatively high percentage of persons unemployed one year or longer. More than half of the unemployed were without work for at least one year in Germany, Italy, and Portugal. Percent 7 6 5 44.2 44. 57.2 52.9 45.2 51.8 4 3 2 1 1. 8.7 2.5 17.8 33. 1.1 7.1 27.3 2.4 34.3 14.1 29.5 14.2 22.1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. SOURCE: Organization for Economic Cooperation and Development. 18 Labor Market Indicators
CHART 2.14 Ratio of unemployment rate of persons without high school degrees to that of persons with college or university degrees, 25 Unemployment rates were higher for persons without high school degrees, except for men and women in Mexico and for women in the Republic of Korea. The unemployment rates of persons without high school degrees were at least three times those of persons with college or university degrees for men in Norway and Austria, and for both men and women in Germany, Ireland, the United Kingdom, and the United States. Ratio Men Women 6 5. 4.6 4 2 3.6 3.2 3.2 3.3 3.3 3.1 3.2 3.2 2.7 2.8 2.6 2.6 2.3 2.4 2.1 2.2 2.1 2.1 2.2 2. 1.7 1.8 1.5 1.6 1.6 1.6 1.7 1.6 1.7 1.4 1.4 1.3 1.2.6.7.8 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 24 for Austria. 23 for Japan. The unemployment rates used to calculate these ratios are for men and women ages 25 to 64. SOURCE: Organization for Economic Cooperation and Development. Labor Market Indicators 19
CHART 2.15 Educational attainment of the adult population, 25 by highest level of education attained More than one-third of the adult population has tertiary (university) education in Canada, Japan, the United States, and Denmark. In Mexico, Portugal, and Spain, more than half of the adult population has less than upper secondary education. Percent Below upper secondary Upper secondary and post-secondary non-tertiary Tertiary 1 8 39 46 15 6 32 4 32 27 18 34 25 25 29 12 3 33 13 13 28 3 3 6 4 49 39 79 33 44 44 52 63 49 41 58 36 39 42 45 74 21 54 56 2 U.S. 12 15 Canada Mexico Australia 35 24 21 19 16 Japan Korea, Rep. of New Zealand Austria Denmark 17 France 34 Germany 17 Ireland 35 Italy 49 Netherlands 28 Norway 22 Portugal Spain 51 Sweden 16 14 U.K. NOTE: 23 for Japan. The adult population is defined as persons ages 25 to 64. Below upper secondary education is equivalent to less than high school. Upper secondary and post-secondary non-tertiary education is equivalent to high school and also includes trade school. Tertiary education is equivalent to higher education provided by a college or university. SOURCE: Organization for Economic Cooperation and Development. 2 Labor Market Indicators
SECTION 3 Competitiveness Indicators for Manufacturing Relative levels and changes in manufacturing hourly compensation costs and relative changes in manufacturing labor productivity (output per hour) and unit labor costs can be used to partially assess international competitiveness. These data are available on a comparative basis only for the manufacturing sector. Charts 3.1 and 3.2 compare the level and trends of hourly compensation costs for production workers in manufacturing. The data are adjusted to U.S. dollars at market exchange rates. Changes over time in compensation costs denominated in U.S. dollars reflect the underlying national wage and benefit trends measured in national currencies, as well as frequent and sometimes sharp changes in currency exchange rates. The hourly compensation figures in U.S. dollars provide comparative measures of employer labor costs; they do not provide comparative measures of the purchasing power of worker incomes. Chart 3.3 depicts employer social insurance expenditures and other labor taxes as a percent of hourly compensation costs. Charts 3.4 through 3.7 provide comparisons of manufacturing productivity growth rates, the composition of productivity growth in terms of changes in output and hours worked, trends in unit labor costs, and shares of world manufacturing output. Unit labor costs are defined as the cost of labor compensation per unit of output. Changes in unit labor costs reflect the net effect of changes in hourly worker compensation and in labor productivity. Unit labor costs rise when compensation per hour rises faster than labor productivity. Conversely, if labor productivity rises faster than hourly compensation, unit labor costs decline. The compensation costs indicators provide the most extensive coverage in this chartbook. Twenty-two economies and the EU-15 are shown on those charts. For productivity and its related indicators, the coverage is limited to 15 economies. Chart 3.7 on world manufacturing output covers 2 economies and the EU-15. Competitiveness Indicators for Manufacturing 21
CHART 3.1 Hourly compensation costs, 25 for production workers in manufacturing in U.S. dollars Eight European countries, as well as Australia and Canada, had higher hourly compensation costs than the United States. Hourly compensation costs were well under $1 in Mexico, Hong Kong SAR, Taiwan, Portugal, and Singapore. U.S. Dollars 5 4 3 2 23.65 23.82 24.91 21.76 13.56 14.97 27.52 29.42 35.47 24.63 33. 22.76 21.5 31.81 39.14 17.78 28.73 25.66 1 2.63 5.65 7.66 6.38 7.33 U.S. Canada Mexico Australia Hong Kong SAR Japan Korea, Rep. of New Zealand Singapore Taiwan EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: Hong Kong SAR stands for Hong Kong Special Administrative Region of China. SOURCE: Bureau of Labor Statistics. 22 Competitiveness Indicators for Manufacturing
CHART 3.2 Average annual growth rates for hourly compensation costs, 1995-25 for production workers in manufacturing in U.S. dollars Growth in hourly compensation costs in U.S. dollars was similar for the United States and the EU-15 as a whole. Only Japan had a decrease in hourly compensation costs over the period. Percent 8 6.4 6.4 6 4 3.3 3.7 4.5 4.9 3.8 3.1 3.4 2.5 5.2 3. 2.8 4.7 3.7 3.4 2.9 2 1.6.1.6 1.5.9 -.8-2 U.S. Canada Mexico Australia Hong Kong SAR Japan Korea, Rep. of New Zealand Singapore Taiwan EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: Hong Kong SAR stands for Hong Kong Special Administrative Region of China. SOURCE: Bureau of Labor Statistics. Competitiveness Indicators for Manufacturing 23
CHART 3.3 Employer social insurance expenditures and other labor taxes as a percent of hourly compensation costs, 25 for production workers in manufacturing Employer social insurance costs as a percent of hourly compensation costs were similar for the United States and the EU-15 as a whole, but U.S. costs were higher than in all of the non-european economies. In Europe, social insurance costs as a percent of total hourly compensation costs ranged widely: France and Italy had higher costs than the United States, while Denmark and Ireland had much lower costs. Percent 4 3 2 22.5 19.4 2.3 17. 21.7 23.5 27.1 31.2 22.6 3.9 21.5 2. 19.7 25.2 28.1 18.5 1 1.9 8.5 4.5 14. 12.1 1.3 12.7 U.S. Canada Mexico Australia Hong Kong SAR Japan Korea, Rep. of New Zealand Singapore Taiwan EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: Hong Kong SAR stands for Hong Kong Special Administrative Region of China. SOURCE: Bureau of Labor Statistics. 24 Competitiveness Indicators for Manufacturing
CHART 3.4 Average annual growth rates for manufacturing productivity, 1996-26 The Republic of Korea had, by far, the largest increase in manufacturing labor productivity, followed by Sweden, Taiwan, and the United States. Manufacturing labor productivity declined on average only in Italy. Percent 1 8.8 8 7.1 6 5.4 5.6 4 2.3 2.5 3.4 3.1 4.3 3.8 3.3 3. 3.8 2 1.6 -.1-2 U.S. Canada Australia Japan Korea, Rep. of Taiwan Denmark France Germany Italy Netherlands Norway Spain Sweden U.K. NOTE: Productivity is defined as output per hour worked. SOURCE: Bureau of Labor Statistics. Competitiveness Indicators for Manufacturing 25
CHART 3.5 Average annual growth rates for manufacturing output and hours worked, 1996-26 Average annual growth rates for manufacturing output were highest in the Republic of Korea, Sweden, and Taiwan. The United Kingdom, the United States, and Japan had the largest percentage declines in hours worked; hours worked increased only in Spain and Canada. Percent 1 Output Hours worked 8 7.5 6 5.3 6.1 4 2 3.3 2.6 1.4 1.3 1.7 2.4 2.6 2. 1.8 3. 1.4-2 -2..4-1.1-2. -1.2 -.3-1.3-1.8.. -1.2-1.3-1.1 -.9.4-4 U.S. Canada Australia Japan Korea, Rep. of Taiwan Denmark France Germany Italy Netherlands Norway Spain Sweden U.K. -3.3 SOURCE: Bureau of Labor Statistics. 26 Competitiveness Indicators for Manufacturing
CHART 3.6 Average annual growth rates for manufacturing unit labor costs in U.S. dollars, 1996-26 Unit labor costs (ULC) are a component of total production costs and product prices. Declines in ULC indicate that an economy is becoming more cost-competitive. ULC declined over the period in almost half of the economies, including the United States. Percent 4 2 2.6 1.5 2.5 2. 3.2.1.1.6 -.7-2 -1.6-1.9-4 -3.2-3.2-3.7-4.7-6 U.S. Canada Australia Japan Korea, Rep. of Taiwan Denmark France Germany Italy Netherlands Norway Spain Sweden U.K. SOURCE: Bureau of Labor Statistics. Competitiveness Indicators for Manufacturing 27
CHART 3.7 Manufacturing output as a percent of world manufacturing output, 26 The United States is, by far, the world s leading producer of manufactured goods. The EU-15 countries combined share of world manufacturing output surpassed that of the United States. Percent 3 25 2 2.5 25.6 15 1 11.1 7.4 5 2.5 1.6 1. 2.6.2.7.4 3.3.6 3.7 1..5.3 2.1.8 3.7 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. SOURCE: United Nations. 28 Competitiveness Indicators for Manufacturing
SECTION 4 Other Economic Indicators Charts 4.1 through 4.5 show indicators of broad labor market and population issues, some of these in the policy field. Charts 4.1-4.3 compare the following policy issues: expenditures on labor market programs, the extent of labor and product market regulations, and the level of taxation on labor. Chart 4.4 shows dependency ratios. The dependency ratio is an overall measure of the dependence of children and the elderly on people of working age. However, dependency ratios show the age composition of a population, not necessarily economic dependency. Some children and elderly people are part of the labor force and some working-age people are not. Chart 4.5 compares data on trade in goods as a percent of GDP. This indicator shows an economy s degree of openness. The number of countries covered in this section varies from 18 to 2. EU-15 data were available only for two charts. Other Economic Indicators 29
CHART 4.1 Public expenditures on labor market programs as a percent of GDP, 25-6 Expenditures on labor market programs were less than 1 percent of GDP in the United States, the Republic of Korea, Japan, the United Kingdom, and New Zealand. The highest relative expenditures were in Denmark, the Netherlands, and Germany. Percent 5 4 4.3 3.3 3.4 3 2 1.4 1. 1.1.7.4.8 2.1 2.5 1.5 1.4 1.6 2. 2.2 2.5.7 U.S. Canada Australia Japan Korea, Rep. of New Zealand Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: 25 for the Republic of Korea, Austria, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, and Sweden. Fiscal year 25 for the United Kingdom. Fiscal year 26 for the United States, Canada, Australia, Japan, and New Zealand. SOURCE: Organization for Economic Cooperation and Development. 3 Other Economic Indicators
CHART 4.2 Measures of regulation on labor and product markets, 23 Regulations on market activity were least restrictive in the United States and the United Kingdom. Portugal and Mexico were characterized by more restrictive labor markets, followed by Spain and France; restrictive product markets were most pronounced in Mexico and Italy. Scale -6 from least to most restrictive Labor market Product market 6 5 4 3 2 1 3.5 3.2 3.1 2.9 2.4 2.6 2.6 2.5 2.2 2.2 2.3 2. 1.8 1.8 1.7 1.9 1.5 1.3 1.5 1.6 1.6 1.11.2 1.3 1.5 1.4 1.4 1.3 1.4 1.1 1.2 1.1 1. 1.1 1.1.9.9.7 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. SOURCE: Organization for Economic Cooperation and Development. Other Economic Indicators 31
CHART 4.3 Share of labor costs taken by tax and social security contributions, 26 For the average single worker, the combined employer-employee tax burden was lower in the United States than in all European countries except Ireland. The combined employer-employee tax burden was higher in the United States than in all non-european countries except Canada. Percent 6 5 4 3 2 28.9 32.1 15. 28.1 28.8 18.1 2.9 42.6 48.1 41.3 5.2 52.5 23.1 45.2 44.4 37.3 36.3 39.1 47.9 33.9 1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: Data refer to single persons without children at the income of the average worker. SOURCE: Organization for Economic Cooperation and Development. 32 Other Economic Indicators
CHART 4.4 Dependency ratios, 25 and projections to 225 In 25, Mexico had the highest dependency ratio, while the Republic of Korea had the lowest. Only Mexico s dependency ratio is expected to decrease by 225; Japan is expected to have the highest dependency ratio. Ratio.8 25 225.7.6.5.49.58.44.57.58.59.48.47.51.68.47.57.51.5.59.47.56.51.6.53.62.5.6.47.51.59.6.59.51.52.48.48.55.55.45.53.64.52.59.4.39.3.2.1 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand EU-15 Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. NOTE: The dependency ratio is the ratio of dependents (persons ages 14 and under and persons ages 65 and over) to the working-age population (persons ages 15 to 64). SOURCE: United Nations. Other Economic Indicators 33
CHART 4.5 Trade in goods as a percent of GDP, 25 This indicator shows the relative importance of trade in goods to an economy; the United States and Japan had the lowest ratios. The relatively high figures for Singapore and the Netherlands reflect their status as platforms for re-exports and trans-shipments. Percent 4 35 368 3 25 2 15 123 1 5 21 61 58 32 24 69 44 83 62 46 63 88 43 54 54 43 68 41 U.S. Canada Mexico Australia Japan Korea, Rep. of New Zealand Singapore Austria Denmark France Germany Ireland Italy Netherlands Norway Portugal Spain Sweden U.K. SOURCE: World Bank. 34 Other Economic Indicators
SECTION 5 Indicators for Large Emerging Economies Charts 5.1 through 5.9 provide a broad overview of basic economic indicators for the United States and five large emerging economies. These emerging economies are not included in the other charts in this chartbook due to data limitations. Charts 5.1-5.3 show population data in three varying ways: world population distribution, age composition of the population, and dependency ratios. Gross Domestic Product (GDP) comparisons are shown in chart 5.4 (GDP per capita) and chart 5.5 (GDP per employed person). Chart 5.6 presents labor force participation rates by age and chart 5.7 employment-topopulation ratios by sex. Chart 5.8 compares trade in goods as a percent of GDP. Chart 5.9 shows manufacturing output as a percent of world manufacturing output. All of these charts include the United States, which is used as a reference point, and five large emerging economies: Brazil, China, India, Indonesia, and the Russian Federation. Indicators for Large Emerging Economies 35
CHART 5.1 World population distribution, 25 The five large emerging economies Brazil, China, India, Indonesia, and the Russian Federation made up 45 percent of the world s population. China and India together made up well over one-third of the world s population. Rest of the World 5% U.S. 5% Brazil 3% Russian Federation 2% Indonesia 3% SOURCE: United Nations. China 2% India 17% 36 Indicators for Large Emerging Economies
CHART 5.2 Age composition of the population, 25 The Russian Federation had the highest proportion of persons ages 65 and over and the lowest proportion ages 14 and under. India had the largest proportion of persons ages 14 and under, accounting for about one-third of the country s total population. Percent Ages 14 and under Ages 15 to 64 Ages 65 and over 1 9 12.3 6.1 7.7 5. 5.5 13.8 8 7 6 5 66.9 66. 7.7 62. 66.1 71.1 4 3 2 1 2.8 27.8 21.6 33. 28.4 15.1 U.S. Brazil China India Indonesia Russian Federation SOURCE: United Nations. Indicators for Large Emerging Economies 37
CHART 5.3 Dependency ratios, 25 and projections to 225 In 25, India had the highest dependency ratio; however, between 25 and 225, India s ratio is expected to experience the largest decline. Although the United States and Indonesia had similar dependency ratios in 25, it is expected that by 225, the U.S. dependency ratio will have risen to become the highest and Indonesia the lowest. Ratio 25 225.7.6.58.61.5.4.49.51.49.41.46.48.51.43.41.48.3.2.1. U.S. Brazil China India Indonesia Russian Federation NOTE: The dependency ratio is the ratio of dependents (persons ages 14 and under and persons ages 65 and over) to the working-age population (persons ages 15 to 64). SOURCE: United Nations. 38 Indicators for Large Emerging Economies
CHART 5.4 GDP per capita, 25 converted at PPP rates Among the five large emerging economies, the Russian Federation and Brazil had the highest GDP per capita, onequarter to one-fifth of the U.S. level; India and Indonesia had the lowest, at less than one-tenth of the U.S. level. China was in the middle of the group, with a GDP per capita at nearly 16 percent of the U.S. level. Thousands of U.S. dollars 5 4 42. 3 2 1 8.7 6.6 1.9 3.5 3.8 U.S. Brazil China India Indonesia Russian Federation NOTE: Purchasing Power Parity (PPP) is the number of foreign currency units required to buy goods and services in a foreign country equivalent to what can be bought with one dollar in the United States. SOURCE: Bureau of Labor Statistics and World Bank. Indicators for Large Emerging Economies 39
CHART 5.5 GDP per employed person, 1996 and 25 in 199 U.S. dollars converted at PPP rates Among the five large emerging economies, GDP per employed person was highest in the Russian Federation and Brazil. China had the largest increase in GDP per employed person from 1996 to 25, with an average annual growth rate of 7.5 percent. Thousands of 199 U.S. dollars 1996 25 7 63. 6 52.6 5 4 3 2 1 14.9 14.7 9.8 5.1 4.5 6.6 8.3 9. 1.4 15.6 U.S. Brazil China India Indonesia Russian Federation NOTE: Purchasing Power Parity (PPP) is the number of foreign currency units required to buy goods and services in a foreign country equivalent to what can be bought with one dollar in the United States. SOURCE: International Labor Office. 4 Indicators for Large Emerging Economies
CHART 5.6 Labor force participation rates by age, 26 Youth and both groups of older workers (persons ages 55 to 64 and persons ages 65 and over) had the lowest participation rates in the Russian Federation. The participation rate for youth was highest in China, while the rates for older workers, particularly persons ages 65 and over, were highest in Indonesia. Percent Ages 15 or 16 to 24 Ages 25 to 54 Ages 55 to 64 Ages 65 and over 1 91. 89.3 8 6 82.9 63.7 6.6 61. 79.9 55.4 69. 55.8 7. 55.4 52.8 78.8 66.2 4 44.7 41.4 39.1 41.5 3.1 22.9 2 15.4 17.2 5.4 U.S. Brazil China India Indonesia Russian Federation SOURCE: Bureau of Labor Statistics and International Labor Office. Indicators for Large Emerging Economies 41
CHART 5.7 Employment as a percent of the working-age population by sex, 26 China had the highest percentage of employed working-age men and working-age women. Less than one-third of the female working-age population was employed in India. Percent Men Women 9 8 7 7.1 73. 78.9 77.7 77.5 66.8 62.9 6 56.6 5 49.8 44.3 5.8 4 3 32.2 2 1 U.S. Brazil China India Indonesia Russian Federation NOTE: The working-age population is defined as persons ages 15 or 16 and over. SOURCE: Bureau of Labor Statistics and International Labor Office. 42 Indicators for Large Emerging Economies
CHART 5.8 Trade in goods as a percent of GDP, 25 This indicator shows the relative importance of trade in goods to an economy. China had the highest proportion of trade in goods to GDP, followed by Indonesia and the Russian Federation; the United States had the lowest proportion. Percent 7 63.4 6 56.1 5 48.3 4 3 29.6 21.3 22.2 2 1 U.S. Brazil China India Indonesia Russian Federation SOURCE: World Bank. Indicators for Large Emerging Economies 43
CHART 5.9 Manufacturing output as a percent of world manufacturing output, 26 The U.S. share of world manufacturing output was equal to the combined share of the large emerging economies. Among the large emerging economies, China had the largest share of world manufacturing output, by far. Rest of the World 58% Russian Federation 2% India 2% Indonesia 1% U.S. 21% Brazil 3% China 13% SOURCE: United Nations. 44 Indicators for Large Emerging Economies
SECTION 6 In recent years, governments have dedicated considerable resources and attention to tackling chronic underemployment among persons with disabilities and making work accessible to everyone. This one-time section looks at disability prevalence, benefit recipiency rates, and employment patterns among persons with disabilities. Disability Indicators Chart 6.1 illustrates the prevalence of persons with disabilities while chart 6.2 compares their employment-to-population ratios to those of persons without disabilities. Charts 6.3 and 6.4 present the prevalence of persons receiving disability benefits and their labor force status. All charts cover 13 to 15 countries. Interpreting international statistics on persons with disabilities and disability benefit recipients is challenging for many reasons. At the forefront, a universal statistical definition of disability is not available and therefore is not applied in data collection. Differences in survey instruments, methods, and sampling further reduce the comparability of indicators. In addition, the precise mix of disability benefit programs offered vary by country, as do the eligibility requirements and covered population. Charts 6.1, 6.2, and 6.4 are collected through household surveys, which do not cover the institutionalized population. For charts 6.1 and 6.2, disability status is determined by self-reports of a long-term health problem, disability, or disease in combination with resulting impediments to carrying out daily activities. For chart 6.4, receipt of disability benefits is also self-reported. Chart 6.3 is based on administrative records on benefit recipients. The reader should refer to the appendix for a more complete discussion on international comparability. Disability Indicators 45
CHART 6.1 Persons with disabilities as a percent of the working-age population Mexico and Italy had the lowest percentage of persons reporting that they have disabilities, followed by the United States and Spain. The greatest prevalence of persons reporting disabilities was in Sweden, Portugal, the Netherlands, and Denmark. Percent 25 2 16.1 18.6 15.8 18.1 18.8 16.7 19. 2.6 18.2 15 1 1.7 7. 12.8 13. 7.1 11.3 5 U.S. (1996) Canada (FY 1999) Mexico (1996) Australia (1998) Austria (1997) Denmark (1997) France (1997) Germany (1996) Italy (1997) Netherlands (1997) Norway (1998) Portugal (1997) Spain (1997) Sweden (1997) U.K. (1996) NOTE: The working-age population is defined as persons ages 2 to 64. SOURCE: Organization for Economic Cooperation and Development. 46 Disability Indicators