The distribution of skills among the European adult population and unemployment: A comparative approach

Abstract

The IEB research group in Human Capital aims at promoting research in the Economics of Education. The main objective of this group is to foster research related to the education and training of individuals and to promote the analysis of education systems and policies from an economic perspective. Some topics are particularly relevant: Evaluation of education and training policies; monetary and non-monetary effects of education; analysis of the international assessments of the skills of the young (PISA, PIRLS, TIMMS) and adult populations (PIAAC, IALS); education and equality, considering the inclusion of the disabled in the education system; and lifelong learning. This group puts special emphasis on applied research and on work that sheds light on policy-design issues. Moreover, research focused in Spain is given special consideration. Disseminating research findings to a broader audience is also an aim of the group. This research group enjoys the support from the IEB-Foundation.The Barcelona Institute of Economics (IEB) is a research centre at the University of Barcelona (UB) which specializes in the field of applied economics. The IEB is a foundation funded by the following institutions: Applus, Abertis, Ajuntament de Barcelona, Diputació de Barcelona, Gas Natural, La Caixa and Universitat de Barcelona. The IEB working papers represent ongoing research that is circulated to encourage discussion and has not undergone a peer review process. Any opinions expressed here are those of the author(s) and not those of IEB. Documents de Treball de l'IEB 2015/35 THE DISTRIBUTION OF SKILLS AMONG THE EUROPEAN ADULT POPULATION AND UNEMPLOYMENT:A COMPARATIVE APPROACH * Jorge Calero, Álvaro Choi ABSTRACT: The most painful effect of the Great Recession in European countries has been the surge in unemployment rates during a period that has been characterised most notably by an increase in income inequality and the heterogeneous pattern of this inequality by educational level. Thus, workers with low levels of educational attainment were among the first to lose their jobs. This paper addresses two main research questions: first, it estimates the importance of the level of skills and education on the probability of being unemployed; and, second, it provides evidence of the impact of inequalities in the previous socioeconomic and cultural background of individuals on the probability of being unemployed. These two objectives are assessed using data for 24 jurisdictions participating in the first round of the OECD's Programme for the International Assessment of Adult Competencies (PIAAC). Skill levels play a central role in explaining unemployment in Europe and act as an indirect channel via which a family's sociocultural background has an impact on its labour market status.JEL Codes: J24, J62, I24

On the comparability of adults with low literacy across LEO, PIAAC, and NEPS. Methodological considerations and empirical evidence

“…Another strand of research has highlighted the relationship between literacy proficiency, educational attainment and labor market outcomes, for example, in terms of a person's occupational status or employment status (Arendt et al 2008;Barone and Werfhorst 2011;Calero and Choi 2017;Grotlüschen et al 2016;McIntosh 2001;OECD 2013b;Perry and Gauly 2019;Shomos 2010;Wicht et al 2019). Undoubtedly, educational attainment influences opportunities for access to the labor market (Arrow 1973;Spence 1973), and this applies particularly to Germany with its strong emphasis on vocational training and formal educational credentials (Solga et al 2014).…”

“…Because educational attainment and labor market outcomes are interrelated, it is not surprising that unemployment rate is higher among adults with lower proficiency (Arendt et al 2008;Calero and Choi 2017;Grotlüschen et al 2016). Yet not only lower educational attainment but also literacy proficiency itself cause problems in (re-)entering the labor market (Arendt et al 2008;Calero and Choi 2017). On the other hand, following practice engagement theory (Reder 2009), unemployment can also entail literacy losses by reducing engagement with written material due to lack of such requirements.…”

Untangling the roles of low skill and education in predicting youth NEET statuses: negative signalling effects in comparative perspective

“…Particularly in countries that have experienced high educational expansion, these youth risk being excluded from the labour market regardless of their actual skills (Araki 2020). However, the exact protective role of a diploma is not yet well understood, as it is not always a sufficient condition in avoiding youth unemployment and precarity (Calero and Choi 2017). More particularly, the interrelated impacts of skill and education on NEET statuses have not been explored directly in studies of NEET youth.…”

Competence Differences in Literacy, Numeracy, and Problem Solving According to Sex

“…A citizenry’s abilities in mathematics, science, and technology skills are understood as the fundamental aspects of human capital associated with the labor force, and this focus has made it easier for educators and policy makers to illustrate growth rates due to explanations of variations in the quality of the labor force (Hanushek & Kimko, 2000). When measured against an individual’s accomplishment in the labor market and the economy’s capacity to grow, cognitive achievement successfully measures students’ accomplishment in the standardized tests that substitute for the related labor market skills (Calero & Choi, 2017; Hanushek & Woessmann, 2008). Some studies have employed various adult skill measures to evaluate the quality of labor forces by country.…”