OECD publishes proposal for economic growth in Hungary
Hungary should reduce the tax wedge on labor income, scale back disincentives for those wishing to work at an older age and improve outcomes and equity in education in order to support economic growth, OECD said in an annual report, dubbed "Going for Growth", published today. OECD took stock of Hungary's recent policy reforms and made recommendations for actions to support growth.
It also recommended further reductions in the tax wedge on low salaries through better targeting of cuts in social contributions and introducing an employment tax credit that would progressively decline with wage levels. It added that Hungary should index the statutory retirement age to gains in life expectancy and close pathways into early retirement for women.
Among its recommendations for education, the OECD suggested postponing the implementation of a student tracking system and instead improving general skills and promoting equity as well as extending tuition exemption to all disadvantaged students who meet higher education admission criteria.
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