This study suggests that governments should consider tax cuts for employers who hire low-skilled workers, particularly youth and the long-term unemployed. To give all people an incentive to work, the report proposes a number of reforms targeted at three groups that tend to be under-represented in labour markets across the world: low-income workers; second earners (generally women); older workers. Analysis suggests tax reform would improve incentives and encourage them to work.

For further details see http://www.oecd.org/document/0/0,3746,en_21571361_44315115_48824192_1_1_1_1,00.html