The Republic has largely caught up with leading OECD countries in terms of productivity and, to a lesser extent, income levels, according to a new study.

The OECD study said that the rapid pace of economic growth over the past decade had been underpinned by a major expansion in the workforce. However, it said that female participation needed to be encouraged.

The study, Going for Growth, made several recommendations including a tax credit for childcare to encourage those seeking part-time work and lower skilled second earners.

The study also said the regulatory burden on business and non-manufacturing sectors should be eased.

It calls for anti-competitive "devices" in retailing such as the groceries order and the retail planning guidelines to be eliminated.

It says areas such as transport, electricity, retail distribution and to a lesser extent, telecoms suffer from unnecessary regulation, including barriers to entry, that show up in high prices.

The OECD also recommends that efforts to open professional services to foreign trained professionals should be pursued.

It says other priorities should be phasing out the tax relief on mortgage interest and avoiding frequent changes in stamp duties. It says the latter leads to "undue volatility" in house prices.

The study also calls for more powers for the Competition Authority and the "possibility" of imposing sanctions and fines.

Elsewhere, the OECD study,which urged labour market reform to boost growth, said Germany needed to encourage older people to work and France should stimulate demand for younger workers.

Unemployment in France rose to a five-year high of 10 per cent in January, and the unadjusted jobless rate in Germany stood at 12.6 per cent in February.

(Additional reporting, Reuters)