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     1OECD Skills Strategy




                                     Skills Strategy
                             A propo...
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     2                                               The context
                                Growth and competitive...
3                       Assist countries in improving economic and social outcomes through
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                        ...
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     4                        A work programme with four pillars
                             How do we identify and    ...
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     5                         A Pillar 1: Drivers for skill demand
                                 work programme with...
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     6                       Pillarwork programme with four pillars
                                A 2: Right mix of sk...
Pillar 3: Are skills developed in effective,
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     7                         A work programme with four pillars
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Pillar 4: Who should pay for what, when,
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     8                         A work programme with four pillars
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     9                                                  Outcomes
                                A Skills Strategy for ...
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                                                     PIAAC
PIAAC
        OECD Programme for the International
  ...
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                                                     PIAAC
PIAAC
        OECD Programme for the International
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   PIAAC will…
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                                    in each country interview 5000 adults aged 16-65 in
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13                             A collaboration among
                              Country participation
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                                                     PIAAC
PIAAC
        OECD Programme for the International
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15                                           Key elements of PIAAC:
                             A multi-cycle internat...
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                                                     PIAAC
PIAAC
        OECD Programme for the International
  ...
x                High potential policy impact
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•Description of the population with low skills,of OECD countries groups
1...
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18                             The qualifications we acquired don’t tell us
                                  everythin...
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19                           Skill make a difference for labour market outcomes
                             The probab...
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                                                     PIAAC
PIAAC
        OECD Programme for the International
  ...
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21                                                  State of play
                                PIAAC is now at a cr...
Andreas Schleicher
Canberra, 13-14 May 2010   OECD Skills Strategy   22
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Skills Strategy

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  • As we all know, growth and competitiveness increasingly depend on the capacity of countries to anticipate the evolution of labour demand and to promote skill acquisition and equity of access to learning. But an equally important challenge for countries is to deploy their talent pool effectively by ensuring that the right mix of skills is being taught and learned and employers find workers with the skills they need. And finally, it is important to develop more efficient and sustainable approaches to the financing of learning that also provide a rational basis for who should pay for what, when, where and how much. Transitions to environmentally sustainable economies are an additional driver in the mix of skills that countries require, as are enhanced skill requirements for social and political participation. International migration is also a source of skills but one that needs to be managed appropriately in order to match individual aspirations with the needs of both sending and receiving countries. Last but not least, growth is not just affected positively by the available talent pool, but also negatively by the economic and social costs associated with declining employment prospects for those without sufficient skills.
  • With an OECD Skills Strategy , we would seek to assist countries to improve economic and social outcomes through better skills and their effective utilisation. More specifically, we would seek to improve: (1) responsiveness (ensuring that education/training providers can adapt efficiently to changing demand); (2) quality and efficiency in learning provision (ensuring that the right skills are acquired at the right time, right place and in the most effective mode); (3) flexibility in provision (allowing people to study/train what they want, when they want and how they want); (4) transferability of skills (such that skills gained are documented in a commonly accepted and understandable form); (5) ease of access (e.g. by reducing barriers to entry such as institutional rigidities, up-front fees and age restrictions, existence of a variety of entry and re-entry pathways); and (6) low costs of early exit (e.g. credit is granted for components of learning, modular provision, credit accumulation and credit transfer systems exist). The work would take a lifecycle perspective in designing policy responses to the challenges of building, maintaining and improving skills in the different transitions over the life course.
  • We have structured the work under four pillars: The first pillar deals with the question: How do we identify and assess essential skills for strong, sustainable and balanced growth and what are the factors driving the evolution of skill demand? Pillar 2: Is the right mix of skills being taught and learned and can employers find workers with the skills they need? Pillar 3: Are skills developed in effective, equitable, efficient and sustainable ways? Pillar 4: How can governments build strong coalitions with the business sector and social investors and find sustainable approaches to who should pay for what, when, where and how much?Let me briefly lead you through these pillars.
  • One of the reasons why skill shortages often do not translate efficiently into learning provision is the lack of a common language through which skills are identified, articulated, recognised and communicated from those who use them to those who produce them. This pillar would seek to assist countries with identifying, defining and assessing essential skills, giving adequate recognition to generic skills as well as domain-specific and firm-specific skills. Our analysis would examine both changing skill demands within existing jobs – often driven by technology – as well as changing aggregate skill demands resulting from shifts in occupational composition. Another important objective of this first pillar would be the development of better evidence on the economic and social outcomes of skills at both individual and aggregate levels.
  • A better understanding of the drivers of changes in skill demand within firms, occupations and countries will be crucial for countries to shift the focus of learning provision from supplying skills for today’s labour market to shaping future jobs. Labour markets are becoming increasingly complex and dynamic, are characterised by growing convergence of occupational sectors and rising job and occupational mobility. These forces combined with depreciation of domain-specific knowledge require individuals to upgrade their skills more regularly leading to changing patterns of work and learning. Skill mismatches occur at both the individual level – when a worker would be more productive in another position – as well as at the aggregate level – when there is a general surplus or shortage of specific skills. It is important in this context that policy makers are seeking to meet skills shortages, and not just labour shortages created by unattractive and low quality employment. There are also ‘age training gaps’ and ‘gender training gaps’ with older workers and women often being less involved in training that their younger and male counterparts, respectively. Why do these gaps exist and how can be best addressed? What are the key institutional factors that can promote participation in training of older workers (e.g. wage-setting mechanisms; retirement policies)? What policy and institutions could reduce the gender training gap (e.g. family-friendly policies that encourage more continuity in working careers for women)? Finally, how to manage the global search for talent while also dealing with brain drain and brain gains issues? How to strengthen education outcomes of children of immigrants in receiving countries? How to promote return migration and better use of competencies in the home country?
  • Third, with a rapidly rising demand for skills, countries can no longer simply rely on education and training systems that efficiently sort individuals, but need to improve their skill base throughout the population and to capitalise on the full potential of all individuals. This requires countries to ensure that skills are developed in effective, efficient and fair ways through lifelong and lifewide learning, and to ensure responsiveness, quality and flexibility in provision. The OECD could play a pathfinder role for countries to: (1) identify effective strategies for new ways of learning and skill provision; (2) improve the knowledge base about skill development; and (3) support systems of continuous innovation and feedback to develop knowledge of what policies work in which circumstances. This would also involve identifying the policy levers, incentive systems and support structures that lead to enhancing skills through the formal educational system, in the work-place or through incentives addressed at the general population. It would also include sustaining workplace training and meeting the increased demand for full-time vocational education and training.There is also significant potential for peer-learning among countries with regard to how individuals learn differently, and differently at different stages of their lives, and what effective policies are to meet those individual needs of people, wherever they learn, to look into new ways to take learning to the learner, examine new forms of educational provision and new relationships between learners, providers, funders and social innovators. Similarly, peer-learning offers important policy insights for establishing the appropriate mix of academic and vocational programmes in ways that reflect student preferences and employers’ needs, with vocational training providing immediate employability, but also basic transferable skills to support occupational mobility.
  • Fourth, governments need to build new relationships, networks and coalitions between learners, providers, governments, businesses, social investors and innovators that bring together the legitimacy, innovation, and resources that are needed to make lifelong learning a reality for all. Much of this networking and engagement takes place at the level of local labour markets, and it is therefore at this level that relevant stakeholders interact and collaborate to gear education and training to local labour market needs, attract and retain talent, and ensure that disadvantaged groups are integrated into learning systems. The rising demand for skills also implies that all stakeholders must be prepared to mobilise more time and money for learning. At the same time, there is an urgent need to improve the efficiency of educational provision. Investment in learning needs to be cost and tax-efficient for individuals and their employers. For those out of work, funding needs to be accessible to support and incentivize learning. Governments need to use regulation and taxation to encourage financial institutions to develop new financial instruments that allow learners to access opportunities when they need them most, including through lowering cost, reducing risk and smoothing repayments. For learning beyond universal education, education and training systems need to find ways to share the costs among government, employers and students based on the respective benefits obtained.
  • Skills Strategy

    1. 1. 1 1OECD Skills Strategy Skills Strategy A proposed new horizontal OECD project Andreas Schleicher Canberra, 13-14 May 2010 Canberra, 13-14 May 2010
    2. 2. 2 2 The context  Growth and competitiveness increasingly depend OECD Skills Strategy on the capacity of countries to  anticipate the evolution of labour demand  promote skill acquisition and equity of access to learning  deploy their talent pool effectively by ensuring that the right mix of skills is being taught and learned and employers find workers with the skills they need Develop efficient and sustainable approaches to the Andreas Schleicher Canberra, 13-14 May 2010  financing of learning that establish who should pay for what, when, where and how much.  Growth is not just affected positively by the available talent pool, but also negatively by the economic and social costs associated with inadequate skills .
    3. 3. 3 Assist countries in improving economic and social outcomes through 3 better skills and their effective utilisation  Responsiveness Ensuring that education/training providers can adapt OECD Skills Strategy  efficiently to changing demand  Quality and efficiency in learning provision  Ensuring that the right skills are acquired at the right time, right place and in the most effective mode  Flexibility in provision  Allowing people to study/train what they want, when they want and how they want  Transferability of skills Andreas Schleicher Canberra, 13-14 May 2010  Such that skills gained are documented in a commonly accepted and understandable form  Ease of access  Reducing barriers to entry such as institutional rigidities, up- front fees and age restrictions, existence of a variety of entry and re-entry pathways  Low costs of early exit  Recognition for components of learning, modular provision, credit accumulation and credit transfer systems exist .
    4. 4. 4 4 A work programme with four pillars How do we identify and Is the right mix of OECD Skills Strategy assess essential skills skills being taught for strong, sustainable and learned and can and balanced growth employers find and what are the workers with the factors driving the skills they need? evolution of skill demand? Pillar 1 Pillar 2 How can (EDU and ELS) (ELS) governments build Andreas Schleicher Canberra, 13-14 May 2010 strong coalitions with the business sector and social Pillar 3 Pillar 4 Are skills investors and find (EDU) (EDU and developed in LEED) sustainable effective, equitabl approaches to who e, efficient and should pay for sustainable ways? what, when, where and how much?
    5. 5. 5 5 A Pillar 1: Drivers for skill demand work programme with four pillars  Issues How do we identify and Is the right mix of OECD Skills Strategy  Changing skill demands within jobs – assess essential skills skills being taught often driven by technology for strong, sustainable and learned and can  Increased demand for certain occupationsemployers find and balanced growth affecting the composition of aggregate skills demand and what are the workers with the factors driving the jobs, driven by innovation –skills they need?  New types of evolution of skill and in services in products demand? Pillar 1 Pillar 2 How can  Greater need (EDU transferable skills, in part driven by for and ELS) (ELS) governments build Andreas Schleicher Canberra, 13-14 May 2010 greater labour mobility . strong coalitions  Work proposals with the business sector and social Are Balancing occupation-specific Pillar 4generic skills [ELS]  skills Pillar 3 and investors and find (EDU) (EDU and developed demands in technology-rich environments [PIAAC]  Skill in LEED) sustainable effective, equitabl approaches to who  Skill demands of innovative firms [CERI] e, efficient and should pay for sustainable ways? in health and green jobs [ELS]when, where  Skill demands what, and how much?  Economic and social outcomes of skills [PIAAC, CERI] .
    6. 6. 6 6 Pillarwork programme with four pillars A 2: Right mix of skills learned and taught?  Issues How Increasingly complex and dynamic labour-markets mix of  do we identify and Is the right OECD Skills Strategy assess essentialwith depreciation of domain-specific knowledge combined skills skills being taught for strong, sustainable to upgrade their skills learned and can require individuals and more regularly and balanced to changing patterns of work and learning find leading growth employers and what are the workers with the factors driving the aggregate skill mismatches can they need?  Individual and skills be evolution of skill with ineffective signalling of labour market associated demands to education providers and individuals but can demand? Pillar 1 Pillar 2 How can also be the consequence (EDU and ELS) of a lack of responsivenessbuild (ELS) governments on Andreas Schleicher Canberra, 13-14 May 2010 the part of education and training providers coalitions strong  Age training gaps, gender gaps with the business sector and social  Work proposals (EDU) Pillar 3 Pillar 4 Are skills investors and find (EDU and developed in  Prevalence and consequences of skills mismatch [EDU/ELS] LEED) sustainable effective, equitabl approaches to who Improving the utilisation of human capital [ELS] e, efficient and should pay for  sustainable ways? obsolesence among displaced workers [ELS]  Preventing skill what, when, where  Understanding the impact of age on skills [ELS] . how much? and
    7. 7. Pillar 3: Are skills developed in effective, 7 7 A work programme with four pillars equitable and sustainable ways  Issues How Establishing efficient and fair ways ofIs the right mix of do we identify and lifelong and OECD Skills Strategy  assess essential skills and ensuring responsiveness, quality lifewide learning, skills being taught for strong, sustainable provision and flexibility in and learned and can and balanced growth  Incentive systems and support structures employers find to enhancing skills through the formal educational system, in with the and what are the workers the factors driving the through incentives addressed at theneed? work-place or skills they general population and training evolution of skill  Establishing an appropriate mix of academic and demand? Pillar 2 vocational learningand ELS) that reflect student How can Pillar 1 (EDU in ways (ELS) preferences and employers’ needs, withgovernments build Andreas Schleicher Canberra, 13-14 May 2010 vocational training providing immediate employability, but coalitions strong also basic with the business transferable skills to support occupational mobility sector and social  Work proposals Pillar 3 Are skills Pillar 4 investors and find (EDU) (EDU and developedlearning organisations [CERI]  New in LEED) sustainable Vocational education and training [EDU] approaches to who effective, equitabl  e, efficient in access and educational mobility [PIAAC, PISA] for  Equity and should pay sustainable ways? skill potential of immigrants [ELS] when, where  Utilising the what,  Developing innovation oriented skills [CERI] . and how much?
    8. 8. Pillar 4: Who should pay for what, when, 8 8 A work programme with four pillars where and how much?  Issues How Building new and do we identify relationships, networks and coalitions Is the right mix of OECD Skills Strategy  assess essential skills between learners, providers, governments, taught skills being for strong, sustainable and learned and can businesses, social investors and innovators that find and balanced growth employers bring together the legitimacy, innovation, and the and what are the workers with resources that are needed to make lifelong learning factors driving the skills they need? evolution of skill a reality for all demand? Pillar 2 to encourage both employers and can How Pillar 1  Finding ways (EDU and ELS) (ELS) governments build Andreas Schleicher Canberra, 13-14 May 2010 students to participate in workplace training, and strong coalitions ensuring that such training is of good quality, with with the business effective quality assurance and contractualand social Pillar 3 Pillar 4 sector Are skills investors and find frameworks for (EDU) developed in apprentices and (EDU sustainable LEED) effective, equitabl  Mobilising time and money approaches to who e, efficient and should pay for Work proposals  sustainable ways? what, when, where  Joining up local skill strategies . and how much?
    9. 9. 9 9 Outcomes  A Skills Strategy for OECD countries OECD Skills Strategy  An integrated work programme on skills across the entire organisation  A regularly published OECD Skills Outlook that, with a combination of comparative analysis and country studies, will:  Trace the development of skills, through their utilisation in labour markets, how they feed into better jobs, higher Andreas Schleicher Canberra, 13-14 May 2010 productivity, and ultimately better economic and social outcomes  Customise policy insights from comparative analysis and peer learning so that they are useful in national policy contexts  Provide a catalyst for policy discourse on national skill strategies  Contribute to building strategic partnerships for successful policy implementation  All proposals contingent on CPF resources .
    10. 10. 10 10 PIAAC PIAAC OECD Programme for the International Assessment of Adult Competencies How is PIAAC organised ? How does PIAAC work ? What will PIAAC tell us ? State of play
    11. 11. 11 11 PIAAC PIAAC OECD Programme for the International Assessment of Adult Competencies How is PIAAC organised ? How does PIAAC work ? What will PIAAC tell us ? State of play
    12. 12.  PIAAC will… 12 12  in each country interview 5000 adults aged 16-65 in their homes and test their skills collect information on the antecedents, outcomes and OECD Skills Strategy  contexts of skill development and use … in order to…  provide a comprehensive assessment of the human capital stock – For high performers, show to what extent they are able to apply their skills to solve challenging problems requiring mastery of technology – For those with low literacy, show to what extent their problem is with performing basic reading functions or with understanding and application Andreas Schleicher Canberra, 13-14 May 2010  show to what extent skills held by individuals are actually used at work and identify the role skills play in improving labour market prospects of at-risk populations  improve understanding of the labour market and social returns to education and training  help governments better understand how education and training systems can nurture these skills .
    13. 13. 13 13 A collaboration among  Country participation  countries and sectors building on the PISA model  Australia  A Board of Participating Countries brings together Austria  education and labour ministries and oversees the OECD Skills Strategy development and implementation of PIAAC  Belgium  An international consortium of leading institutions Canada  develops the instruments and survey procedures  National project teams mount the surveys and  Chile collect the data  Czech Republic  A lean management model Denmark  OECD Secretariat co-ordinates the work and guides analysis and reporting Andreas Schleicher Canberra, 13-14 May 2010  Estonia – Share of spending at OECD Secretariat less than a quarter of  Finland the international costs  A sustainable approach to financing  France  46% of internat. costs shared equally among countries,  Germany rest distributed in accordance with OECD scale – in order to balance countries’ ‘capacity to pay’ with the fact  Hungary that much of the international development costs for PIAAC  Ireland is driven by factors unrelated to either the number of countries participating or to the size of their economies .  Italy
    14. 14. 14 14 PIAAC PIAAC OECD Programme for the International Assessment of Adult Competencies How is PIAAC organised ? How does PIAAC work ? What will PIAAC tell us ? State of play
    15. 15. 15 15 Key elements of PIAAC: A multi-cycle international survey of adult skills Measures of adult Measures of key OECD Skills Strategy competencies social and economic  Test-based measures in areas outcomes where methodologies exist  Labour-market experience  Indirect measures in other , status and areas that support PIAAC‘s transitions, earnings, adult policy objectives learning, social outcomes Surveyed: Surveyed: individuals individuals Assessment: Assessment: direct and indirect Andreas Schleicher Canberra, 13-14 May 2010 indirect Surveyed: Surveyed: individuals individuals Measures of the A background Assessment: Assessment: utilisation of indirect, indirect questionnaire competencies e.g. JRA  To contextualise and analyse determinants of at the workplace competencies, their  Through a development, and their job-requirement survey use
    16. 16. 16 16 PIAAC PIAAC OECD Programme for the International Assessment of Adult Competencies How is PIAAC organised ? How does PIAAC work ? What will PIAAC tell us ? State of play
    17. 17. x High potential policy impact 17 •Description of the population with low skills,of OECD countries groups 17 The competitive advantages or special population such as immigrants, andin can and do competition rolejobs wins outcomes. •To whatMust haves global skills play alabour-market the extent the in levelling interrelationships with for Quick •What is playing field, bothin explaining providing high quality education the role of skills in terms of differences in labour-market outcomes between givingthe price native-born and termsDo skill supply to all skills andAdultand of these skills their of skill •Where does initial competencies workers? •Labour force and immigranteducation leave us inareto those who are access to higher education crucial to OECD Skills Strategy able their on aggregate as well as schooling, irrespective where continue their individual differences inand motivated to of increasing was acquired? Do immigrants understand dependdifferent forms of organisation of the education with the perspectivehuman capital global competition for jobs receiveup intheirskill hierarchy. PIAAC social outcomesabout similar economic and higher differentsocial background? can tellobservationally which of the returns to these skills than us more and training system? native-born workers? well do intergenerational mobility will also be cognitive•Further analysis onabouteducational training systems skill and the rapid growth in the impact attainment translated •Has non-cognitive skills are important How learn education and of age on skills and •What can we the JRA measurement of in particular. do in •PIAAC can provide how has thisinsights into the what people and the possible with in generating the required competencies for into better foundation skills? deliver utilisation, systematic changed thoserecent decades risks and rewards over observed in earlier their jobs results compare to and economies, as well •How do the skills in the labour market, for individuals (separating biological as for •Is education levers the labour-market prospects of those as on in policyor skillsassociateddo people gain and lose skillsat risk schooling (PISA)? immigrantsthis specific effects of such as How with Improving mismatch mostly confined to youth early they subgroups aging from differences their professional careers and subsequentlyin technology-rich of Low•How well can adults solve problems in the experiences High feasibility feasibility/costly grow older? diminishes? Is mismatch cohorts over time)?doesinto large earningspopulations Have important and will changes in the this structurethe mobility and environments?translateintergenerational incidence and •How doesEquity and age relate to of penalties? it How Andreas Schleicher Canberra, 13-14 May 2010 intensity such systems in OECD countries shown sufficient aspects of using information technology in and outside work education and trainingas educational attainment feed through to the future talent pool? Ageing and skills adaptability in the face of changing skill demands or are skills mismatches endemic? How do task-based learning (JRA) and job-related Capitalising on technology-rich environments training relate to the length of the working life? (but keep in mind that labour- market outcomes and training are snapshots in time whereas the measured skills are accumulated over the lifespan) What levels of skills do individuals and countries demonstrate, and how do these relate to educational attainment? Money pits Low-hanging fruits … Reasonable potential for policy (Skip examples)
    18. 18. 18 18 The qualifications we acquired don’t tell us everything about the skills we have Mean problem solving1,2 scores on a scale with range 0-500 points, by level of educational attainment, populations aged 16-65, 2003 OECD Skills Strategy 500 450 400 350 300 250 200 Andreas Schleicher Canberra, 13-14 May 2010 150 1 – less than upper secondary 100 2 – upper secondary 50 3 – post-secondary/non-tertiary 4 – tertiary education 0 1 2 3 4 1 2 4 1 2 3 4 1 2 3 4 1 2 3 4 Norway Switzerland Canada Bermuda Italy Source: International Adult Literacy and Life Skills Study (ALLS)
    19. 19. 19 19 Skill make a difference for labour market outcomes The probabilities of unemployed adults aged 16 to 65 to exit unemployment over a 52 week period, by low (Levels 1 and 2) and medium to high (Levels 3 and 4/5) skills, document scale, 2003 OECD Skills Strategy Probability 1.0 0.8 0.6 Andreas Schleicher Canberra, 13-14 May 2010 0.4 High skills (Levels 3, 4 and 5) 0.2 Low skills 0.0 (Levels 1 and 2) 0 4 8 12 16 20 24 28 32 36 40 44 48 5 Weeks Source: International Adult Literacy and Life Skills Study (ALLS)
    20. 20. 20 20 PIAAC PIAAC OECD Programme for the International Assessment of Adult Competencies How is PIAAC organised ? How does PIAAC work ? What will PIAAC tell us ? State of play
    21. 21. 21 21 State of play  PIAAC is now at a critical juncture of moving from an international strategy towards OECD Skills Strategy national implementation  Where we are… – PIAAC strategy agreed among countries – International project consortium in place – Agreement on the scope of the initial report and a discussion on further analytic work Andreas Schleicher Canberra, 13-14 May 2010 – Full pilot in all countries, majority of countries now in the field (1400 respondents, 2010), … and what remains ahead – Review of field trial results and development of main data collection instruments – Main data collection (2011/2012) – Public release of results (2013) .
    22. 22. Andreas Schleicher Canberra, 13-14 May 2010 OECD Skills Strategy 22 22 Thank you !

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