The 2017 labor law reform significantly improved Lithuania’s position in the Employment Flexibility Index, moving the country from the 27th to 15th position among the EU and OECD countries, according to Employment Flexibility Index 2019 compiled by LFMI based on the World Bank’s Doing Business data.
As part of the implementation of the European Pillar of Social Rights, the European Commission (EC) has adopted a proposal for a Council Recommendation on access to social protection for workers and the self-employed.
On November 15, 2018, the Lithuanian Free Market Institute (LFMI) held a conference on the shadow economy in Vilnius to address the scope and drivers of the shadow economy in Lithuania and across Europe and to discuss the most effective policies in tackling the issue.
The shadow economy in Lithuania remains pervasive despite economic growth, and as many as one in two people would consider informal consumption and undeclared work if their financial circumstances worsened, shows a LFMI research report.
The aim of the publication Shadow Economy: Understanding Drivers, Reducing Incentives is to present and analyse the results of representative population surveys into public perceptions of the shadow economy and engagement in illicit activities that were conducted in six countries.
The competitiveness of a country’s tax system is instrumental in creating a favorable environment for foreign direct investment, stimulating business, and advancing societal well-being. Competition based on endogenous factors should not be perceived as unjust or unnatural.
Labor market flexibility may be characterized by the market participants’ abilities to deviate from standard labor regulations and typical forms of employment. Such possibilities may not only provide positive outcomes to both employers and employees, but they may also benefit the whole economy.
There is evidence showing that increases in mandatory minimum wage might force some firms to increase prices, lay off workers, cut fringe benefits for employees and engage in other revenue-boosting or cost-cutting measures.
Taxation of tobacco products raises severe economic and social concerns which should be taken into account when formulating further tobacco taxation policies, including on novel tobacco products. Increased education rather than higher excise duties should be the main policy.