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BUILDING THE RIGHT SKILLS

AND TURNING THEM INTO

BETTER JOBS AND BETTER

LIVES: THE OECD SKILLS

STRATEGY

Dr Cristina Martinez-Fernandez, Senior Policy analystOECD LEED

Skills for Inclusive & Sustainable Growth in DevelopingAsia-Pacific, ADB, Manila, 11-12 December 2012

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What OECD is

International organisation

34 member countries

Established over 50 years ago

Mission: to promote better policiesfor better lives

How we work

Engage governments and other

stakeholders

Produce comparative data

Compare policy experiences across

countries to draw together lessons andpolicy options for countries

link together policies across different

sectors to achieve better outcomes

educationstatistics

economics

environmenthealth

competition

taxation

migration

corruptiongovernance

social policy

investment

trade

agriculture

development

pensions insurance

innovation

entrepreneurship

labour markets

gender

What is the OECD?

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The OECD LEED Programme

Mission: To contribute to building moreand better jobs in the OECD and beyond

Body created 30 years ago to :

Provide cross-cutting analysis ofemployment,skills and economic development issues

identify innovative solutions to

unemployment, which can be mainstreamed generate guidance on policy implementation:

ensure that policies are delivered effectively

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Why a OECD strategy for skills? Skills

matter...

for individuals... because skills have an increasing impact on labour market

outcomes and social participation

and for economies because failure to ensure a good skills match has bothshort-term consequences (skills shortages) and longer-term effects on economic growth and equality ofopportunities

But better skills do not automatically translate intohigher incomes and higher productivity Ineffective skills policies come at a cost

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1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

0 1 2 3 4

Number of skills domains with low performance

Odds ratio (16-65 year olds)

In lowest two quintiles

of personal income

Unemployed

On welfare assistance

Low skills and individual outcomes

Note: Odds are adjusted for age, gender and immigration statusSource: PIAAC field trial data

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Skills mismatch and earnings

1000

1500

2000

2500

3000

30 35 40 45 50 55 60 65

Month

lywagesUS$

Age

HIGH-SKILL MATCH (high basic skills, high use)

SKILL DEFICIT (low basic skills, high use)

SKILL SURPLUS (high basic skills, low use)

LOW-SKILL MATCH (low basic skills, low use)

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OECD Skills Strategy

7

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How does a country maximise its skills?

Developing relevant skills

Encouraging and enabling people to learnthroughout life

Fostering international mobility of skilled

people to fill skills gaps

Promoting cross-border skills policies

Activating skills supply

Putting skills to effective use

Encouraging people to offer their skills to the

labour market

Retaining skilled people in the labour market

Creating a better match between peoples

skills and the requirements of their job

Increasing the demand for high-level skills

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SKILLS GAPS AND

SHORTAGES

HIGH SKILL

EQUILIBRIUM

LOW SKILL

EQUILIBRIUMSKILLS SURPLUS

Skills

demand

Skills utilisation: Geographical differentiation

Skills supply

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10

Skills utilisation: Local skills strategies

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Tailoring policy guidance to Asia

Improving skills systems in Developing Asia

Boosting skills and knowledge intensity in firms,including in the informal economy

Tackling mismatch

Designing local

skills strategies& ecosystems

Building effective

partnerships

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THANK YOU

Employment and Skills Strategies inSoutheast Asia OECD ESSSA Initiative

www.oecd.org/cfe/leed/employment/esssa

and clearspace site (open access)https://community.oecd.org/community/esssa

http://www.oecd.org/cfe/leed/employment/esssahttps://community.oecd.org/community/esssahttps://community.oecd.org/community/esssahttp://www.oecd.org/cfe/leed/employment/esssa