Adaptability of the workforce in Europe – changing skills in the digital era

Maja Jandriæ () and Saša Ranðeloviæ ()
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Maja Jandriæ: University of Belgrade, Faculty of Economics, Kamenièka 6, 11000 Belgrade, Serbia
Saša Ranðeloviæ: University of Belgrade, Faculty of Economics, Kamenièka 6, 11000 Belgrade, Serbia

Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, 2018, vol. 36, issue 2, 757-776

Abstract: Digital technologies make significant impact on labor market, primarily by complementing or by substituting workers. This has triggered a change in the set of skills that are required from workers, by putting stronger focus on problemsolving skills, creativity, socioemotional skills, functional literacy and technical skills related to the use of digital technologies. The effects of digitalization on the labor market and economic performances of a particular country in the future depend on the workforce adaptability, industrial and occupational structure, the skills mix, organization of work and current state of digitalization. The aim of this paper is to evaluate the degree of workforce skills adaptability in 30 European countries, using the OECD data on achievement in reading, math and science, as well as the data on digital competencies, inclusion in lifelong learning and subjective perception on ability to find a new job. Our results suggest positive relationship between adaptability and PISA results. Using the principal component analysis, cluster analysis and LCCA (latent class cluster analysis), we find that European countries can be grouped into three clusters, in terms of adaptability: high performing (North and Western Europe), medium performing (Central Europe and Baltics) and low performing (South and South-eastern Europe). For some countries, low levels of adaptability of the workforce can pose an important obstacle for future growth and development.

Keywords: labor market; digitalization; lifelong learning; digital competencies; Principal Component Analysis; Latent Class Cluster Analysis (search for similar items in EconPapers)
JEL-codes: J21 J24 J62 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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