Skills for growth: human capital composition and economic performance
Back to the future of work, policy discussion at the Forum on the Future of Work and Labour Ministerial, 14 and 15 January 2016.
The digital revolution, globalisation and rapid population ageing are changing profoundly the types of jobs needed and the way we work, and may lead to even more dramatic changes over the coming decades. Will the many unemployed ever find a job again with the skills they have today in new world of work? Where are new jobs being created and what do they look like?
This is the newsletter of the OECD LEED Programme.
The OECD’s most recent ‘Investing in Youth’ country reviews identify three broad streams of solutions to provide disadvantaged youth with the skills they need and thus reduce the share of youth outside of education or employment.
Being able to directly measure all the above aspects would be extremely useful but economists and analysts usually face severe data limitations (e.g. small sample size, data comparability, measurement error etc.) and are, in many instances, forced to use second-best proxies to describe skills and build indicators.
Youth who have disconnected from the education system and are not working or planning to return to training are at high risk of marginalisation. Review of programs and other initiatives to re-connect.
High-skilled jobs as an important driver of overall employment growth in the EU and the impact of high-skill job creation goes beyond the highly educated workforce. If European regions are very unequal in terms of high-skill intensity, they are converging slowly.
Older workers earn more than younger workers with the same skills. So what explains the lower return to skill among younger, less-experienced workers? Employers may need time to learn about (and reward) the true skills of young workers. “Experience and the returns to education and skill in OECD countries, Evidence of employer learning?” published in the OECD Journal: Economic Studies.
The potential for automation is limited when it comes to social skills, which is why social skills are increasingly rewarded in the labour market. Technological change is shaping the future of work through, in part, a skill-biased effect on employment.