Bloomberg ranked OECD countries based on their working environment.
The ranking focused on compensation and quality of peers, assuming that workers would prefer countries where they can expect to be competitively compensated, have the least amount of direct outlay for their own health care and retirement, and have productive and educated colleagues. Competitiveness of pay was divided into three factors: annual wages, calculated by annualizing monthly wage data in local currency from the International Labor Organization and converting figures into U.S. dollars using year-end exchange rates for each of the five years; compensation, such as cash and in-kind payments, as well as contributions to social security and pension, as a percentage of expense; and out-of-pocket spending on health care, such as direct outlay to health practitioners, pharmaceuticals and therapeutic devices. Quality of peers included: productivity (GDP per person employed); labor force participation; and labor force with tertiary education. For each factor, countries were scored as percentages to the maximum value within the OECD. Factors were then averaged to derive the total score for each country. Countries with fewer than five data points were excluded. The most recent five-year average data available were used to smooth out the short-term volatility due to recent financial swings.
OECD, International Labor Organization, IMF, The Conference Board, World Bank
May 3, 2013