The role of education and skills in promoting inclusive growth

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Presentation by Dirk Van Damme, Head of the Innovation and Measuring Progress Division, OECD Directorate for Education and Skills, during the meeting of the OECD Global Parliamentary Network in Mexico City (23-24 June 2014).

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The role of education and skills in promoting inclusive growth

  1. 1. IMPLEMENTING STRUCTURAL REFORMS WITH THE OECD: THE ROLE OF EDUCATION AND SKILLS IN PROMOTING INCLUSIVE GROWTH Dirk Van Damme Head, Innovation and Measuring Progress Division, OECD/EDU 23 June 2014
  2. 2. • Hesitant global economic recovery, but – Unemployment remains very high: >46 million unemployed in OECD countries – The crisis has reinforced increase in income inequality: income of richest 10% is 9.5 times that of poorest 10% (increase of 30% in 25 years) Inclusive Growth: promoting inclusion and boosting long-term growth 2
  3. 3. • Hesitant global economic recovery, but – Inequality increases in many other domains as well: employment, health, education, housing, not only affecting overall quality of life, but also future economic growth and social cohesion • Multidimensionality of inclusive growth • Economic growth is important, but not sufficient for society’s progress if the growth dividend is not shared in a fair way Inclusive Growth: promoting inclusion and boosting long-term growth 3
  4. 4. Productivity Innovation Human capital Education The role of education and skills in fostering growth – the standard view GROWTH Income Competitiveness 4
  5. 5. Average number of years of schooling of the adult population 0 2 4 6 8 10 12 14 16 IND IDN CHN TUR BRA SAU MEX ZAF KOR ESP ITA RUS ARG FRA CAN JPN GBR AUS DEU USA 2010 1990 1970 Emerging countries catching up in education in quantitative terms 5
  6. 6. • But the average levels of educational attainment tell only part of the story, and a very minor one – Average skills level adult population only very weakly related to economic output 6 The role of education and skills in fostering growth – the standard view
  7. 7. 7 Average numeracy score unrelated to economic output Australia Austria Canada Czech Rep Denmark Estonia Finland Germany Ireland Italy Japan Korea Netherlands Norway Poland Slovak Rep Spain Sweden United States FlandersUK 15000 20000 25000 30000 35000 40000 45000 50000 240 250 260 270 280 290 GDP per capita Mean numeracy score PIAAC 2012
  8. 8. • For social progress, the equitable distribution is more important – Equality of opportunity to education – Equitable learning outcomes – A well-balanced skills distribution • Especially at the low ends of the distribution 8 The role of education and skills in fostering inclusive growth
  9. 9. The role of education and skills in fostering inclusive growth High social inequality Unequal family economic & cultural capital Unequal education opportunities Wide distribution in learning outcomes Unequal skills distribution Low social mobility EducationSkills 9
  10. 10. The role of education and skills in fostering inclusive growth High social inequality Unequal family economic & cultural capital Unequal education opportunities Wide distribution in learning outcomes Unequal skills distribution Low social mobility EducationSkills 10
  11. 11. AustraliaAustria Belgium Canada Chile Czech Rep. Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Rep. Slovenia Spain Sweden Switzerland Turkey UK US Singapore Hong Kong-ChinaChinese Taipei Macao-China Liechtenstein Viet Nam Latvia Russian Fed. Lithuania Croatia Serbia Romania Bulgaria United Arab Emirates Kazakhstan Thailand Malaysia PISA 2012 Shanghai-China Socially equitable distribution of learning opportunities Strong socio-economic impact on student performance
  12. 12. The role of education and skills in fostering inclusive growth High social inequality Unequal family economic & cultural capital Unequal education opportunities Wide distribution in learning outcomes Unequal skills distribution Low social mobility EducationSkills 12
  13. 13. Skills inequality relates to income inequality 13 Australia Austria Canada Czech Rep Denmark Estonia Finland GermanyIreland Italy Japan Korea Netherlands Norway Poland Slovak Rep Spain Sweden United States Flanders UK 0.20 0.25 0.30 0.35 0.40 55 60 65 70 75 Gini coefficient Score-point difference between the 75th and 25th percentiles on the numeracy scale PIAAC 2012
  14. 14. Especially, the share of low-skilled relates strongly to social inequality Australia Austria Canada Czech Rep Denmark Estonia Finland Germany Ireland Italy Japan Korea Netherlands Norway Poland Slovak Rep Spain Sweden United States Flanders UK 0.20 0.25 0.30 0.35 0.40 35 40 45 50 55 60 65 70 75 Gini coefficient Percentage of adults scoring below Level 2 on the numeracy scale 14 PIAAC 2012
  15. 15. 15 While the share of high-skilled is positively related to economic output Australia AustriaCanada Czech Rep Denmark Estonia Finland Germany Ireland Italy Japan Korea Netherlands Norway Poland Slovak Rep Spain Sweden United States FlandersUK 15000 20000 25000 30000 35000 40000 45000 50000 3 6 9 12 15 18 21 GDP per capita Percentage adults scoring Level 4 or 5 on the numeracy scale PIAAC 2012
  16. 16. 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0 Good to excellent health Being employedHigh levels of interpersonal trust Participation in volunteer activities High levels of political efficacy High wages Low skills impact negatively on social outcomes and can generate huge costs scoring at Level 4/5 compared with those scoring at Level 1 or belowOdds ratio 16 PIAAC 2012
  17. 17. • National differences in connecting education and skills distribution to social and economic outcomes are huge • Hence, policies play a powerful role and can impact on each step in the process • There is a lot of room for improvement towards inclusive growth 17 But policies can have an impact on education systems improving quality and equity
  18. 18. But policies can have an impact on education systems improving quality and equity 18 Education policies
  19. 19. But policies can have an impact on education systems improving quality and equity Germany Netherlands Mexico Sweden OECD average 2003 Uruguay Australia Belgium Austria Canada Czech Republic Denmark Finland France Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg New Zealand Norway Poland Portugal Slovak Republic Spain Switzerland United States Brazil Hong Kong-China Indonesia Latvia Macao-China Russian Federation Thailand Tunisia -4 -3 -2 -1 0 1 2 3 4 5 -8-6-4-202468 Annualisedchangeinmathematicsperformance Change in the percentage of variation in mathematics performance explained by the PISA index of economic, social and cultural status (2012 - 2003) Equity improvedEquity deteriorated Performanceimproved Performance deteriorated 19 PISA 2012 - 2003
  20. 20. The OECD can help! Tailored policy advice 20
  21. 21. The OECD can help! Education GPS: User-friendly knowledge management http://gpseducation.oecd.org/ 21
  22. 22. • Making the analysis and identifying the policy challenges • Helping to set the objectives of reform • Assisting in the national dialogue to foster the acceptance of reform and its implementation • Monitoring outcomes • Identifying next steps The OECD can help! The case of education reform in Mexico 22
  23. 23. • Making the analysis and identifying the policy challenges • Helping to set the objectives of reform • Assisting in the national dialogue to foster the acceptance of reform and its implementation • Monitoring outcomes • Identifying next steps The OECD can help! The case of education reform in Mexico 23
  24. 24. A. Estudiantes: mejores resultados para todos Equidad y calidad: Promover la mejora educativa para niños de contextos socioeconómicos en desventaja y de poblaciones indígenas. Preparar a los alumnos para el futuro: Promover mayor cobertura de educación media superior y asegurar un uso efectivo de cualificaciones en el mercado laboral. B. Instituciones: mejorar la calidad de las escuelas Mejora escolar: Profesionalizar la enseñanza y el liderazgo escolar atrayendo, desarrollando y reteniendo a los mejores candidatos a través de procesos sistemáticos y transparentes. Evaluar para mejorar los resultados de los alumnos: Proveer coherencia a través del sistema, construyendo capacidad y equilibrando las funciones de mejora y rendición de cuentas. C. Instituciones: gestionar el sistema educativo Gobierno: Lograr un balance entre gobiernos federales y estatales, asegurando la capacidad y el involucramiento efectivo de diferentes actores. Financiación: Establecer un financiamiento más transparente y equitativo que alcance a aquellas escuelas y alumnos que más lo necesitan. El marco de análisis y retos en México Contexto: Política educativa en perspectiva 24
  25. 25. • OECD will continue its work on Inclusive Growth – http://www.oecd.org/inclusive-growth/ • The OECD Directorate for Education and Skills (EDU) will structurally include work on Inclusive Growth in its 2015-16 draft work programme – The Centre for Educational Research and Innovation (CERI) will have a project on ‘How skills contribute to Inclusive Growth’ 25 OECD’s work on Inclusive Growth
  26. 26. Thank you ! dirk.vandamme@oecd.org www.oecd.org/edu/ twitter @VanDammeEDU 26

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