To ensure consistency of data across policy fields, 2018 data are used which is the latest available information for active labour market programmes.

(i) Dispersion of public power within the structure of the state (D): This is approximated by assessing the percentage of revenue and expenditure that is centralized or devolved.

D = (a1+a2)/2

Where a1 = Taxation collected at the state and local level as a per cent of general government expenditure

And a2 = Revenue spent at the state and local level as a per cent of general government revenue

(Social security is considered to be centralized rather than devolved)

Source: OECD Government at a Glance 2021 database (www.oecd.org/ gov/government-at-a-glance-2021-database.htm). No data issues identified for 2018.

(ii) Dispersion of private power in labour markets (L): Maximize labour force participation and ability to compete in the labour market through upper- secondary education, vocational training and active labour market schemes.

L = (b1+ b2+ b3)/3

Where b1 = Labour force participation rate in per cent And b2 = Population with at least an upper-secondary education in per cent

And b3 = per cent of upper-secondary education undertaking vocational training × per cent GDP spent on ALMP

Sources: Employment – Labour force participation rate – OECD Data (https://data.oecd.org/emp/labour-force-participation-rate.htm). No data issues identified for 2018.

Education attainment – Adult education level – OECD Data (https://data.oecd.org/eduatt/adult-education-level.htm). Data for Japan taken from (OECD, 2015) hence it is stale although is unlikely to have changed significantly.

Enrolment by type of institution (https://stats.oecd.org/Index. aspx?DataSetCode=EDU_ENRL_INST). No data issues identified for 2018.

OECD iLibrary – Labour market programmes: expenditure and participants (www.oecd-ilibrary.org/employment/data/oecd-employmentand- labour-market-statistics/labour-market-programmes-expenditure-andparticipants_data-00312-en). Data for Greece taken from (Martin, 2015), UK padded forward from 2011 and Iceland is estimated from publicly available information. Hence, UK and Greece data is stale but are the best available estimates.

(iii) Dispersion of private power in product markets (W): Mean real wage growth over a ten-year period (median wage growth would be a more appropriate measure due to faster rise in wages of top decile but due to data limitations the mean is used).

W = (r2018 – r2008)/ r2008 where ri (real wages) are indexed at 2008 = 100 ri = Nominal wage growthi – CPIi

Sources: Average annual wages (https://stats.oecd.org/Index.aspx?DataSetCode=AV_AN_WAGE).