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Employment effects of skills around the world: Evidence from the PIAAC

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Article

Stijepic, Damir

International Labour Review

2020

159

3

September

307-338

cognitive skill ; education ; employment ; survey

international

Education and training

https://doi.org/10.1111/ilr.12162

English

Bibliogr.

"Using an international survey that directly assesses the cognitive skills of participants, the author studies the effect of skills on employment in 32 countries. On average, a 1 standard deviation increase in numeracy is associated with an 8.4 percentage point increase in the probability of being employed, reducing the probability of being out of the labour force and unemployed by 6.4 and 2.1 percentage points, respectively. After controlling for numeracy, the estimated employment effect of years in education falls by one third, from 2.7 to 1.8 percentage points. Notably, the employment effect of skills is more pronounced in countries with higher unemployment."

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