Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

OECD Skills Outlook Global Launch - Skills and Global Value Chains

26,496 views

Published on

Since the 1990s, the world has entered a new phase of globalisation. Information and communication technology, trade liberalisation and lower transport costs have enabled firms and countries to fragment the production process into global value chains (GVCs). Many products are now designed in one country and assembled in another country from parts manufactured in several countries. Thirty percent of the value of exports of OECD countries comes from abroad. In this new context, GVCs and skills are more closely interrelated than ever. Skills play a key role in determining countries’ comparative advantages in GVCs. A lot of the opportunities and challenges brought about by GVCs are being affected by countries’ skills.

The OECD Skills Outlook 2017 shows how countries can make the most of global value chains, socially and economically, by investing in the skills of their populations. Applying a “whole of government” approach is crucial. Countries need to develop a consistent set of skills-related policies such as education, employment protection legislation, and migration policies, in coordination with trade and innovation policies. This report presents new analyses based on the Survey of Adult Skills and the Trade in Value Added Database. It also explains what countries would need to do to specialise in technologically advanced industries.

Published in: Education
  • Your opinions matter! get paid for them! click here for more info...♥♥♥ http://ishbv.com/surveys6/pdf
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I went from getting $3 surveys to $500 surveys every day!! learn more... ♣♣♣ https://tinyurl.com/make2793amonth
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Intéressant
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

OECD Skills Outlook Global Launch - Skills and Global Value Chains

  1. 1. OECD Skills Outlook Global Launch Skills and Global Value Chains @UniofBathIPR, @OECDEduSkills #OECDSkills 4 May 2017 Andreas Schleicher Andrew Wyckoff
  2. 2. People are at the centre of Global Value Chains 2
  3. 3. What Global Value Chains (GVCs) mean Value added The Smiling Curve 3 R&D Design Logistic purchase Production Assembling Logistic s Market ing Service s Pre-production Upstream activities Post-production Downstream activities Production Value chain activities
  4. 4. 4 A comprehensive approach Exports of manufactured goods include a large share of value added from abroad Foreign value added embodied in exports, manufactured goods and services, 2011 0 10 20 30 40 50 60 70 80 90 100 Domestic, in manufactured exports Foreign, in manufactured exports Foreign, in business services exports Source: OECD Trade in Value Added database (TiVA).
  5. 5. 0 10 20 30 40 50 60 70 80 90 % EU28 East and Southeast Asia (excl. China) NAFTA China Rest of the world Many jobs depend on demand in foreign countries Source: OECD (2015b), OECD Science, Technology and Industry Scoreboard 2015: Innovation for growth and society. Jobs in the business sector sustained by foreign final demand, by region of demand As a percentage of total business sector employment, 2011 5
  6. 6. +100 +1.1% +0.4% Source: OECD calculations based on Marcolin et al. (2016) . Technology and employment in GVCs
  7. 7. 7 Investing in KBC and skills…. Countries differ in the number and type of workers performing tasks shaping the long-term functioning of firms, i.e. in their Organisational Capital. Health, Science & Engineering professionals … 12 14 12 12 12 10 9 14 19 14 15 17 17 20 15 24 20 22 21 26 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 CZE SVK ITA ESP SWE KOR DNK BEL EST DEU AUT POL IRL FRA JPN NOR USA CAN NLD GBR % Investment: Managers Investment: Non-managers Employed persons in OC occupations as a percentage of total employed persons Employment and investment in Organisational Capital, 2011-12 (As % of total VA) Source: OECD Science, Technology and Industry Scoreboard 2015, DOI : 10.1787/sti_scoreboard-2015-en. Managers
  8. 8. 8 …..is key to thrive in GVCs Source: OECD Science, Technology and Industry Scoreboard 2015, 12 14 12 12 12 10 9 14 19 14 15 17 17 20 15 24 20 22 21 26 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 CZE SVK ITA ESP SWE KOR DNK BEL EST DEU AUT POL IRL FRA JPN NOR USA CAN NLD GBR % Investment: Managers Investment: Non-managers Employment and investment in Organisational Capital, 2011-12 (As % of total VA) Source: Marcolin et al. (forthcoming) . OC over VA, by industry intensity in ICT, 2011
  9. 9. 9 …..is key to thrive in GVCs Source: OECD Science, Technology and Industry Scoreboard 2015, ICT investment over VA, by degree of input offshoring Services industries 12 14 12 12 12 10 9 14 19 14 15 17 17 20 15 24 20 22 21 26 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 CZE SVK ITA ESP SWE KOR DNK BEL EST DEU AUT POL IRL FRA JPN NOR USA CAN NLD GBR % Investment: Managers Investment: Non-managers Employment and investment in Organisational Capital, 2011-12 (As % of total VA) Source: Marcolin et al. (forthcoming) . OC over VA, by industry intensity in ICT, 2011
  10. 10. Globalisation is being questioned AUS AUT BEL CAN CZE DNK EST FIN FRA DEU GRC HUN ISL ISR ITA JPN KOR LUX MEX NLD NZL NOR POL PRT SVK SVN ESP SWE TUR GBR USA -0.08 -0.06 -0.04 -0.02 0 0.02 0.04 0.06 -15 -10 -5 0 5 10 15 Change in the Gini coefficient Change in backward participation in GVCs IRL Inequalities have increased or decreased in countries that have increased their participation in GVCs Source: OECD Trade in Value Added Database (TiVA); OECD Income Distribution Database. 2000-12 10
  11. 11. Skills Matter for globalisation 11
  12. 12. • Realise productivity gains – offered by new technologies and participation in GVCs • Protect workers against negative impact – Job losses, lower job quality • Specialise in advanced industries and services – Innovation, higher productivity, job creation 12 Why skills?
  13. 13. The Race between Technology and Education Inspired by “The race between technology and education” Pr. Goldin & Katz (Harvard) Industrial revolution Digital revolution Social pain Universal public schooling Technology Education Prosperity Social pain Prosperity
  14. 14. 0 0.5 1 1.5 2 2.5 Backward participation (exports) Backward participation (final demand) Forward participation (final demand) Least fragmentable industries Most fragmentable industries Percentage points Average annual increase in productivity growth, 1995-2009 Larger increase in: Transport eq., Electrical and optical eq., Food products, Chemicals Smaller increase in: Computer activities, R&D and other business activities, health and social work Source: OECD calculations based on OECD TiVA database and World Input-Output Database (WIOD). Participation in GVCs can lead to productivity gains, especially if associated with skills 14 Skills channel
  15. 15. 15 Link between exports in GVCs and skills indicators Source: OECD calculations based on OECD TiVA database and Survey of Adult Skills (PIAAC) Countries can grow in global markets if their workers have a range of skills -0.02 -0.01 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 Regression coefficient Assessed cognitive skills Task-Based skills Personality trait
  16. 16. • Sources of inequality – Skill-biased technological change and institutions: important sources – Competition from low-cost countries: another source • What people do and the type of skills they develop makes a difference – More educated workers enjoy higher job quality – Gap in job strain between low and highly educated workers is larger in countries more active in GVCs • Investing in skills particularly important in countries engaged in lower end of GVCs 16 Impact of GVCs on inequalities within countries
  17. 17. 17 Gap in job quality between high-skilled and low-skilled workers and participation in global value chains More educated workers enjoy better job quality AUT BEL CZE DNK EST FIN FRA DEU GRC HUN IRL ITA LUX NLD NOR POL PRT SVK SVNESP SWE TUR GBR 0 10 20 30 40 50 60 0 10 20 30 40 50 60 70 Gap in the quality of the working environment between high-skilled and low-skilled workers Backward participation in GVCs, % In countries more integrated in global markets, the gap in job quality between educated and less educated workers is bigger Source: OECD calculations based on OECD Job Quality Database and OECD Trade in Value Added database (TiVA). Earnings quality Level and distribution of earnings Labour-market security Risk of unemployment and available income support Quality of the working environment Nature and content of work performed, work-time arrangements and workplace relationships)
  18. 18. 18 Production Marketing Services Design R&D Value added along GVCs From economic to social outcomes By investing in skills, countries can help make GVCs work for all Skills Employment Social outcomes Productivity
  19. 19. 19 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes Limited share of low- skilled workers To participate in GVCs, ensure that participation translates into productivity growth and limit risk of employment loss, increased inequality and poor job quality Developing skills To ensure that participation in GVCs translates into good economic and social outcomes, countries need to raise skill outcomes Advanced skills To specialise in technologically advanced industries, the quality of skills at the top end of the skill distribution is important Increasing participation in GVCs How successfully have countries extended their participation in GVCs by importing foreign inputs for exports and producing inputs used in other countries inputs Specialised in advanced industries Specialisation in technologically advanced industries is linked to value creation, innovation and productivity gains (revealed comparative advantage) Increasing specialisation in advanced industries How quickly has the revealed comparative advantage grown Increasing productivity Increased participation in GVCs can lead to productivity gains through many channels, including specialisation, increased competition and technology diffusion Increasing employment Participation in GVCs can affect employment through both job destruction and job creation Improving social outcomes Increased integration in GVCs can affect wages and inequalities, labour-market security and the quality of the working environment
  20. 20. 0 10 20 30 40 50 60 70 % Workers In both literacy and numeracy In literacy only In numeracy only The proportion of low performers in literacy and/or numeracy Source: OECD calculations based on OECD Survey of Adult Skills (PIAAC) (2012 and 2015). 20 More than 200m adults in OECD countries have low literacy or numeracy skills and 60% lack both
  21. 21. 100 80 60 40 20 0 20 40 Turkey Greece Chile Lithuania Israel United States Poland Russian Federation Ireland Slovak Republic England (UK) Northern Ireland (UK) Japan OECD average Slovenia Estonia Denmark Austria Australia Canada New Zealand Germany Czech Republic Norway Flanders (Belgium) Netherlands Sweden Finland Korea Singapore Level 2 Level 3 Level 2 Level 3 Young adults (16-24 year-olds) Older adults (55-65 year-olds) % Medium to advanced digital problem-solving skills
  22. 22. -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 Literacy skills Numeracy skills Problem solving skills in technology-rich environments Physical skills Correlation between the employment share in high routine jobs and average workers’ skills Workers in high routine jobs tend to have low cognitive skills Source: OECD calculations based on OECD Survey of Adult Skills (PIAAC) (2012); and Marcolin, L., S. Miroudot and M. Squicciarini (2016), ‘Routine jobs, employment and technological innovation in global value chains’, OECD Science, Technology and Industry Working Papers, No. 2016/01. Workers in high routine jobs tend to have high physical skills 23 Those with higher cognitive skills are less likely to be in routine jobs
  23. 23. 24 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes Limited share of low- skilled workers To participate in GVCs, ensure that participation translates into productivity growth and limit risk of employment loss, increased inequality and poor job quality Developing skills To ensure that participation in GVCs translates into good economic and social outcomes, countries need to raise skill outcomes Advanced skills To specialise in technologically advanced industries, the quality of skills at the top end of the skill distribution is important Increasing participation in GVCs How successfully have countries extended their participation in GVCs by importing foreign inputs for exports and producing inputs used in other countries inputs Specialised in advanced industries Specialisation in technologically advanced industries is linked to value creation, innovation and productivity gains (revealed comparative advantage) Increasing specialisation in advanced industries How quickly has the revealed comparative advantage grown Increasing productivity Increased participation in GVCs can lead to productivity gains through many channels, including specialisation, increased competition and technology diffusion Increasing employment Participation in GVCs can affect employment through both job destruction and job creation Improving social outcomes Increased integration in GVCs can affect wages and inequalities, labour-market security and the quality of the working environment
  24. 24. Countries can shape their specialisation within global value chains through the skills of their populations 25
  25. 25. 26 Change in specialisation, 2000-11: Increase Decrease Source: OECD calculations based on the Trade in Value Added Database. Most OECD countries have increased their specialisation in technologically advanced industries Decrease in low tech. industries Increase in high tech. industries AustraliaAustriaBelgiumCanadaChile Czech Republic Denm ark EstoniaFinlandGerm any GreeceIrelandIsraelJapanKoreaNetherlands New Zealand Norw ayPolandSlovakRepublic SloveniaSw edenTurkeyUnited Kingdom United States Low-tech manufacturing Food products Textiles Wood Pulp and paper Manufacturing n.e.c Coke, petroleum Rubber products Other mineral products Basic metals Fabricated metal products Wholesale and retail trade Hotels and restaurants Transport and storage Post and telecom. Machinery and eq. Electrical machinery Motor vehicles Chemicals Computer, optical Other transport eq. Finance and insurance Real estate activities Renting of eq. Computer R&D Low-tech manufacturing Medium/low-tech manufacturing Business services (less complex) Medium/high- tech manufacturing High-tech manufacturing Business services (more complex)
  26. 26. Specialising in most technologically advanced industries (incl. services) requires a good alignment of countries’ skills with industries’ skills requirements For instance, the finance and insurance industry requires : Workers with good numeracy skills but also managing and communicating skills to perform the various activities Pools of workers with qualifications that reflect what they can do: Many technologically advanced industries involve long sequences of tasks and poor performance at any stage greatly reduces the value of output 27
  27. 27. 30 Countries can increase specialisation within GVCs through their skills characteristics The effect of countries’ skills characteristics on specialisation within GVCs Change in exports (in value added terms) Source: OECD calculations based on the Survey of Adult Skills (PIAAC) and Trade in Value Added Database. 0 2 4 6 8 10 12 Numeracy and literacy Literacy and problem- solving in technology-rich environment Numeracy and problem- solving in technology-rich environment % Skills mix Pools of workers with qualifications reflecting what they can doDifferences in countries to equip workers with right skill mix can lead to differences in relative exports • 8% between two countries with average differences in skill mix • Up to 60% between two countries with large difference in skill mix
  28. 28. Specialisation opportunities in complex business services, high-tech and medium high-tech manufacturing resulting from alignment between countries skill characteristics with industry requirements Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) The revealed comparative advantage captures countries’ specialisation in industries within global value chains. It shows the comparative advantage/disadvantage a country has in an industry relative to other countries and all other industries Revealed comparative advantage (2011RCA>1) No revealed comparative advantage (2011RCA<1)
  29. 29. Specialisation opportunities in complex business services, high-tech and medium high-tech manufacturing resulting from alignment between countries skill characteristics with industry requirements Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Skills characteristic provides opportunity for specialisation Revealed comparative advantage (2011RCA>1) No revealed comparative advantage (2011RCA<1)
  30. 30. Specialisation opportunities in complex business services, high-tech and medium high-tech manufacturing resulting from alignment between countries skill characteristics with industry requirements Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Skills characteristic provides opportunity for specialisation Skills characteristics insufficient to meet requirements of advanced industries
  31. 31. Specialisation opportunities in complex business services, high-tech and medium high-tech manufacturing resulting from alignment between countries skill characteristics with industry requirements Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Skills characteristic provides opportunity for specialisation Could explore wide spectrum of specialisation opportunities
  32. 32. Specialisation opportunities in complex business services, high-tech and medium high-tech manufacturing resulting from alignment between countries skill characteristics with industry requirements Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Skills characteristic provides opportunity for specialisation Could explore specialisation in services
  33. 33. Specialisation opportunities in complex business services, high-tech and medium high-tech manufacturing resulting from alignment between countries skill characteristics with industry requirements Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Revealed comparative advantage increased Revealed comparative advantage decreased Australia Austria Canada Chile Estonia Finland Germ any Ireland Japan Korea NetherlandsNew ZealandNorw ay Poland SlovakRepublic Slovenia Sw eden Turkey United Kingdom United Stat Technology category Industry name changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 changeinRCA 2011RCA>1 Machinery and equipment n.e.c Electrical mach., apparatus n.e.c Motor vehicle, trailers,semi-trailers Chemicals and chemical products Computer, electronic, and optical Other transport equipment Finance and insurance Real estate activities Renting of machinery, equipment Computer and related activities Research and development,others Medium/high- tech manufacturing High-tech manufacturing Business services (more complex) Skills characteristic provides opportunity for specialisation Could explore specialisation in manufacturing
  34. 34. 37 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes Limited share of low- skilled workers To participate in GVCs, ensure that participation translates into productivity growth and limit risk of employment loss, increased inequality and poor job quality Developing skills To ensure that participation in GVCs translates into good economic and social outcomes, countries need to raise skill outcomes Advanced skills To specialise in technologically advanced industries, the quality of skills at the top end of the skill distribution are important Increasing participation in GVCs How successfully have countries extended their participation in GVCs by importing foreign inputs for exports and producing inputs used in other countries inputs Specialised in advanced industries Specialisation in technologically advanced industries is linked to value creation, innovation and productivity gains (revealed comparative advantage) Increasing specialisation in advanced industries How quickly has the revealed comparative advantage grown Increasing productivity Increased participation in GVCs can lead to productivity gains through many channels, including specialisation, increased competition and technology diffusion Increasing employment Participation in GVCs can affect employment through both job destruction and job creation Improving social outcomes Increased integration in GVCs can affect wages and inequalities, labour-market security and the quality of the working environment
  35. 35. 38 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes
  36. 36. 39 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes UK
  37. 37. 40 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes UK Germany Korea Poland Seized the benefits of GVCs by increasing participation in GVCs, increasing specialisation in advanced industries and delivering better outcomes
  38. 38. 41 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes UK Germany Korea Poland US Denmark Ireland Increased participation in GVCs but have seen weak outcomes, in part because of insufficient skills
  39. 39. 42 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes UK Germany Korea Poland US Denmark Ireland Finland Japan Could benefit more from participation in GVCs by deepening specialisation in technologically advanced industries and by increasing productivity and employment
  40. 40. 43 Limitedshareof low-skilledworkers Developingskills Advancedskills Increasing participationin GVCs Specialisedin advancedindustries Increasing specialisationin advancedindustries Increasing productivity Increasing employment Improvingsocial outcomes UK Germany Korea Poland US Denmark Ireland Finland Japan Turkey Chile Have increased participation in GVCs and developed skill base but could do more to develop skills needed in advanced industries and increase specialisation in these areas
  41. 41. Implications for education and training policies Implications for: Education and training policies 44
  42. 42. • Improve quality of education and training • Better connect the worlds of learning and work – Countries comparative advantage emerges from interactions between skills characteristics and industry requirements • Remove barriers to further skills development – Don’t expect workers to accept they lose their jobs if they don’t feel prepared to get or create a new one 45 Implications for skills policies
  43. 43. 180 200 220 240 260 280 300 Score Literacy skills in younger and older generations 55-65 to 16-24 years Average 55-65 year-olds Average 16-24 year-olds Chile Singapore Lithuania France Germany New Zealand US UK
  44. 44. Participation in all education and training, by literacy level (Adults aged 25-65 years) 0 20 40 60 80 100 Levels 4/5 Level 1 or below%
  45. 45. • Improve quality of education and training • Better connect the worlds of learning and work – Countries comparative advantage emerges from interactions between skills characteristics and industry requirements • Remove barriers to further skills development – Don’t expect workers to accept they lose their jobs if they don’t feel prepared to get or create a new one • Ensure relevant and reliable qualifications – There is huge variation in the skills of people with similar qualifications 48 Implications for skills policies
  46. 46. 49 Mean literacy proficiency and distribution of literacy scores, by educational attainment 100 125 150 175 200 225 250 275 300 325 350 375 400 Lower than upper secondary Upper secondary Tertiary Italy Score 25th percentile Mean 75th percentile Lower than upper secondary Upper secondary Tertiary 100 125 150 175 200 225 250 275 300 325 350 375 400 Japan Score Qualifications don’t always equal skills
  47. 47. 150 170 190 210 230 250 270 290 310 330 Less than upper secondary Upper secondary Tertiary Literacy proficiency by level of educational attainment (25-34 year olds):
  48. 48. Equip graduates with reliable skills-based qualifications 0 10 20 30 40 50 60 % Percentage of young graduates from university with a low level (level 2 or below) of numeracy skills Tertiary-type A only, 20-34 years-old, 2012 or 2015 Source: OECD calculations based on OECD Survey of Adult Skills (PIAAC) (2012 and 2015). 51
  49. 49. • Improve quality of education and training • Better connect the worlds of learning and work – Countries comparative advantage emerges from interactions between skills characteristics and industry requirements • Remove barriers to further skills development – Don’t expect workers to accept they lose their jobs if they don’t feel prepared to get or create a new one • Ensure relevant and reliable qualifications – There is huge variation in the skills of people with similar qualifications • Use skills more effectively – Skills can enable countries to perform well in GVCs, but only if people are working where they use their skills effectively – Combine flexibility to firms with security for workers 52 Implications for skills policies
  50. 50. Use of skills at work 1.4 1.6 1.8 2 2.2 2.4 Reading at work Writing at work Numeracy at work ICT at work Problem solving at work United States Japan Most frequent use = 4 Least frequent use = 0 Indexofuse
  51. 51. Labour productivity and the use of reading skills at work AustraliaAustria Canada Chile Czech Republic Denmark Estonia Finland Flanders (Belgium) France Germany Greece Ireland Israel Italy Japan Korea Lithuania Netherlands New Zealand Norway Poland Russian Federation Slovak Republic Slovenia Spain Sweden Turkey UK United States Slope = 0.666 R² = 0.321 3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 1.7 1.9 2.1 2.3 2.5 2.7 2.9 3.1 3.3 Labourproductivity(log) Mean use of reading skills at work
  52. 52. 2.0 2.5 3.0 3.5 Reading Writing Numeracy ICT Problem solving Indexofuse 1-10 employees 11-50 employees 51-250 employees 251-1000 employees 1000+ employees Skills use at work, by proficiency level, by firm size (OECD average) Most frequent use = 5 Less frequent use = 1
  53. 53. • Improve quality of education and training • Better connect the worlds of learning and work – Countries comparative advantage emerges from interactions between skills characteristics and industry requirements • Remove barriers to further skills development – Don’t expect workers to accept they lose their jobs if they don’t feel prepared to get or create a new one • Ensure relevant and reliable qualifications – There is huge variation in the skills of people with similar qualifications • Use skills more effectively – Skills can enable countries to perform well in GVCs, but only if people are working where they use their skills effectively – Combine flexibility to firms with security for workers • Enhance international collaboration on skills – GVCs make it harder for countries to recoup their investment in skills – Recognition of qualifications – Financing arrangements that reflect the distribution and benefits of costs across countries 56 Implications for skills policies
  54. 54. Implications for education and training policies Policy effort has to go beyond education and training policies 57
  55. 55. Adopt a whole-of-government approach 58 Co-ordinate these policies with other policy domains:  Industry  Innovation  Trade  Investment  And others… Look at full range of reforms affecting skills:  Education and training  Labour market  Firms’ organisation and management practices  Migration  And others…
  56. 56. 59 Firms of all sizes need investing in training…. 15 10 5 0 5 10 15 % Small Medium Large Manufacturing Services Investment in firm-based training, by industry and firm size, 2011-12, as % of VA in the industry Source: OECD Science, Technology and Industry Scoreboard 2015, DOI : 10.1787/sti_scoreboard-2015-en.
  57. 57. … and financial incentives aligned for skills development 0 2 4 6 8 10 12 14 % of wage before education How much earning needs to increase after education so that people earn back the cost of an investment in lifelong learning Source: OECD (2017), Taxation and Skills, OECD Tax Policy Studies, No. 24. Financial incentives are low 60
  58. 58. Countries need to cooperate on education, training, and innovation policies Share of international or foreign students by level of tertiary education 2014 International students Foreign students Some countries have substantial share of foreign students in tertiary education Source: OECD (2016), Education at a Glance 2016: OECD Indicators. 61
  59. 59. Countries can shape their potential to be part of global education, innovation and research networks Source: OECD, STI Micro-data Lab: Intellectual Property Database, http://oe.cd/ipstats, June 2015; OECD and SCImago Research Group (CSIC), Compendium of Bibliometric Science . 62 ARG AUS BRA CAN CHN FRA DEU IND IDN ITA JPN KOR MEX RUS SAU ZAF TUR GBR USA 0 10 20 30 40 50 0 25 50 75 International co-inventions (%) International co-authorship (%) G20 countries Other OECD countries Co-inventions countries' median Co-authorship countries' median
  60. 60. Implications for education and training policies Implications for: Education and training policies 63 Making global value chains work for all Invest in skills Adopt a whole-of government approach to skills Co-ordinate this effort with other policies Develop international cooperation Equip the population with strong mixes of skills, well signalled by qualifications, aligned with industries’ needs Coordinate education, training, labour market, migration and other policies affecting the development and use of skills Align skills policies with trade, investment, innovation, and industry policies to make the most of GVCs As production, education, and innovation become internationalised, countries need to better co-operate on their policies
  61. 61. Find Out More at: http://bit.ly/skillsout17 64 Email Andrew.Wyckoff@OECD.org Twitter @OECDinnovation

×