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We live in a service economy, but the extent of development of service employment differs across developed countries. This paper assesses the role of structural factors and institutions in explaining the common patterns and main differences in the recent expansion of service employment in OECD countries. It finds that GDP per capita, the size of the government sector and the extent of urbanization are positively associated with the service employment share. However, the evidence suggests that laws and institutions such as product market regulations, unions and more coordinated wage-setting systems are hampering the expansion of service employment. [Julián Messina]

Immigration in Finland and in Turku is relatively new. It has been predominantly supply-driven (refugees, returnees and family related migration) and is now gradually changing to more demand-driven migration. Policy reactions – both at the national and local level – have been partial and targeted mainly at the refugee category. Migration and integration policies are in an early phase, primarily reacting to specific vulnerable categories of immigrants. Specific policies relating to reception of refugees and returnees have been initiated at the national level first. Local authorities were then urged to develop integration programmes for migrants. [...][Rinus Penninx]

Since September 2004, Insee has published the results of its business survey in the services sector on a monthly basis together with a synthetic indicator. This indicator is extracted from both monthly and quarterly balances of opinion derived from the survey. The methodological framework is provided by dynamic factor analysis. Indeed, it is flexible enough to deal with both multi frequency series and changes in frequencies. This model has a state-space representation and can be estimated by a Kalman filter. Alternative models have been explored and yield very similar indexes, which emphasizes the robustness of the Insee indicator.This index can be obtained at a disaggregated level and provides an economic outlook of the services sector. Thus, it confirms the resurgence of activity in the services sector in France since mid-2003. More precisely, the activity appeared to be rather bumpy in 2004 and tends to decelerate in the beginning of 2005. [Author vide Copyright]

This report explores the growing role of the private sector in the provision of public services in the EU. The research is based on sector-specific case studies carried out in Lithuania, Spain, Sweden and the UK. It focuses specifically on social services of general interest (SSGIs) in the areas of healthcare, early childhood education and care (ECEC), employment services and long-term care. The findings show that in the two countries with long-established welfare systems (Sweden and the UK), the key factor driving governments to expand the role of the private sector has been the expectation of gains in quality and efficiency. In the countries with less-extensive welfare services (Lithuania and Spain), budgetary constraints have been the key driver. The report finds that greater private sector involvement in the provision of public services often leads to less equitable access and that quality-related outcomes can be mixed. An executive summary is available - see Related content. [Author vide Copyright]