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THE OECD SKILLS STRATEGY Better Skills, Better Jobs, Better Lives 2012 LLAKES Conference Lifelong Learning, Crisis and Social Change Thursday 18 October to Friday 19 October 2012 Glenda Quintini Senior Economist - Employment Analysis And Policy Division Directorare For Employment Labour And Social Affairs At OECD

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The OECD Skills Strategy Better Skills, Better Jobs, Better Lives 2012 LLAKES Conference Lifelong Learning, Crisis and Social Change Thursday 18 October to Friday 19 October 2012. - PowerPoint PPT Presentation

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Page 1: Why skills matter

THE OECD SKILLS STRATEGYBetter Skills, Better Jobs, Better Lives

2012 LLAKES ConferenceLifelong Learning, Crisis and Social ChangeThursday 18 October to Friday 19 October 2012

Glenda QuintiniSenior Economist - Employment Analysis And Policy DivisionDirectorare For Employment Labour And Social Affairs At OECD

Page 2: Why skills matter

Why skills matter

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Page 3: Why skills matter

Skills matter……because they have an increasing impact on economic outcomes and social participation

Page 4: Why skills matter

0 1 2 3 4,1.0

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In lowest two quintiles of personal income

Unemployed

Received social assis-tance in last year

Did not receive in-vestment income in last year

Number of skills domains with low performance

Increased likelihood of failure (16-65 year olds)*

Low skills and economic outcomes

*Odds are adjusted for age, gender and immigration status.

Page 5: Why skills matter

...but qualifications are not the same as skills...

…because we continue to learn after obtaining a degree…and because we lose skills that we do not use

Page 6: Why skills matter

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Country A Country B Country C

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Skill score

Measuring the value of qualificationsInterquartile range in skill distribution by educational qualification

Page 7: Why skills matter

The OECD Skills Strategy

Page 8: Why skills matter

How does a country maximise its skills?

Developing the right skillso By encouraging and enabling people to learn throughout life

o Gather and use evidence about changing skills demand to guide skills developmento Engage social partners in designing and delivering education and training

programmeso Ensure that education and training programmes are of high qualityo Promote equity by ensuring access to, and success in, quality education for allo Ensure that costs are shared and that tax systems do not discourage investments in

learningo Maintain a long-term perspective on skills development, even during economic crises

o By fostering international mobility of skilled people to fill skills gapso Facilitate entry for skilled migrants and support their integrationo Design policies that encourage international students to remain after their studieso Make it easier for skilled migrants to return to their country of origin

o By promoting cross-border skills policies o Invest in skills abroad and encourage cross-border higher education

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Page 9: Why skills matter

Keeping learning beyond schoolCross-sectional skill-age profiles for youths by education and work status

16 17 18 19 20 21 22 23 24 25220

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Age

Mean skill score

Youth in education

Youth in education and work

Youth in work

Not in education, not in work

Page 10: Why skills matter

Unused skills may be more likely to atrophy

15 25 35 45 55 65

Average proficiency of adults who engage the least in reading at work and in daily life (bottom 25%)Average proficiency of adults who engage the most in reading at work and in daily life (top 25%)

Age

Skills score

Low

High

Page 11: Why skills matter

The OECD Skills Strategy

Page 12: Why skills matter

How does a country maximise its skills?

Activate the supply of skills o By encouraging people to offer their skills to the labour market

o Identify inactive individuals and the reasons for their inactivityo Create financial incentives that make work payo Dismantle non-financial barriers to participation in the labour

force

o By retaining skilled people in the labour marketo Discourage early retiremento Staunch brain drain

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Page 13: Why skills matter

Labour force participation variesPercentage of 25-64-year-olds active in the labour market, 2011

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Page 14: Why skills matter

The OECD Skills Strategy

Page 15: Why skills matter

How does a country maximise its skills?

Put skills to effective useo By creating a better match between people’s skills and the requirements

of their jobo Help employers to make better use of their employees’ skillso Tackle unemployment and help young people to gain a foothold in

the labour marketo Provide better information about the skills needed and availableo Facilitate mobility among local labour markets

o By increasing the demand for high-level skills o Help economies to move up the value-added chaino Stimulate the creation of more high-skilled and high value-added

jobso Foster entrepreneurship

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Page 16: Why skills matter

Evidence on the link between skill mismatch and earningsSkill mismatch and earnings are strongly related

30 35 40 45 50 55 60 651000

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Page 17: Why skills matter

Follow up

o Skills Outlook:o 2013 – First International Report of the OECD

Survey of Adult Skills (PIAAC)o 24 countrieso Direct assessment, Job Requirements module,

background questionnaireo Publication of first results: October 2013

o 2014+ Showcasing horizontal work on skills

o Projects on: “Anticipating Skill Needs” and “National Skills Strategies”

Page 18: Why skills matter

THANK YOU