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Mind the skills gap! Regional and industry patterns in emerging economies

Type:
Document
Content Type:
Mind the skills gap! Regional and industry patterns in emerging economies
Language:

English

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english
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skpEng
Sources:

Information is gathered from other international organizations that promote skills development and the transition from education and training to work. The Interagency Group on Technical and Vocational Education and Training (IAG-TVET) was established in 2009 to share research findings, coordinate joint research endeavours, and improve collaboration among organizations working at the international and national levels.

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skpIntOrg
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international-organizations
Topics:

Anticipating and matching skills needs

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Anticipating and building skills for the future is essential to a rapidly changing labour market. This applies to changes in the types and levels of skills needed as well as in occupational and technical areas. Effective methods to anticipate future skills needs and avoid potential mismatches include: sustained dialogue between employers and trainers, coordination across government institutions, labour market information systems, employment services and performance reviews of training institutions. 

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skpAFSN
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anticipating-and-matching-skills-needs

Lifelong learning

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There is a critical need for a greater overall investment in education and training, particularly in developing countries. Education and training investments should be closely linked to economic and employment growth strategies and programmes. Responsibility should be shared between the government (primary responsibility), enterprises, the social partners, and the individual. To make lifelong learning for all a reality, countries will need to make major reforms of their vocational and education and training systems. School-to-work schemes for young people should integrate education with workplace learning. Training systems need to become more flexible and responsive to rapidly changing skill requirements. Reforms should also focus on how learning can be facilitated, not just on training for specific occupational categories.

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skpPSLLL
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lifelong-learning
Knowledge Products:

Research papers

Working papers, reports, and other publications from international organizations, academic institutions and bilateral agencies. Research findings to stimulate informed debate on skills, employment and productivity issues. 

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skpRPS
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research-papers
Publication Date:
04 Feb 2016
Working Paper No. 329 Most emerging economies are characterised by lagging levels of productivity. While economic growth has been robust in much of the emerging world during the last two decades, it has generally been grounded on factor accumulation, with marginal contributions from productivity. With the economic literature pointing to human capital and skills as a key conduit of productivity, the inability of firms to find the skills they need appears as a key brake on development.

This paper aims to identify the dimensions where this skill gap is more prevalent, particularly across emerging regions and industries. It devises an empirical analysis that uses two alternative specifications based on limited dependent variable analysis. The results place Latin America as the emerging region where firms have the greatest problems derived from the lack of adequate skills, well ahead of emerging Asia and Europe, but also of sub-Saharan Africa. In terms of sectors, two advanced manufacturing industries (machinery and motor vehicles) are particularly affected by this relative scarcity of adequately trained workers. Policy recommendations hinge on the need to solve the mismatch between the provision of skills by educational systems and the needs of the economy.

DOI :10.1787/18151949
Subject Tags:

Employability

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employability
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643

Qualification frameworks

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qualification-frameworks
Identifier
651

School-to-work transition

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school-to-work-transition
Identifier
652

Skills and training policy

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skills-and-training-policy
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666

Skills anticipation

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skills-anticipation
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677

Youth

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youth
Identifier
319
Regions:

Americas

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