This paper explains why a comprehensive skills strategy is needed and offers a comprehensive and integrated framework to assess and identify where policy action is needed to improve skill systems.
The framework put forward in this paper builds on the OECD Skills Strategy (2012) as well as the G20 Training Strategy (2010) and the conceptual framework underlying the World Indicators of Skills for Employment (WISE) database which was developed for the G20 Development Working Group. Building on these initiatives, the policy framework to develop and use skills better is designed around three main areas: i) Building skills for work and life; ii) encouraging firms to invest in skills; and iii) ensuring that skills are fully used (through better activation and matching of skills). Policies in these three areas are instrumental for achieving better economic and social outcomes. In addition, broader labour market settings that enable and provide the right incentives for skill acquisition, higher skill requirements and better skills use are also essential.