How to drive up employment rates in countries where they are low?

Low employment rates reduce per capita income and increase income inequality before redistribution. What does the employment rate in OECD countries depend on? We show that a high employment rate is associated with: A low tax burden on companies; High labour force skill levels; The ability of young people to enter the labour market, and therefore the quality of the education system; A rapid increase in demand; A high level of industrial automation. To raise the employment rate: Some policies can have a rapid effect; But other policies will take time (improving the education system and skills, corporate automation).