 Adult skills and productivity: New evidence from PIAAC 2023Dan Andrews, Balázs Égert and Christine de la Maisonneuve No 1834, OECD Economics Department Working Papers from OECD Publishing Abstract: The 2023 Survey of Adult Skills (PIAAC) reveals large cross-country differences in adult skill levels that carry important implications for productivity. Cross-country analysis shows a positive relationship between labour productivity and the average level of adult skills at the industry level –partly reflecting a positive link between adult skills and R&D intensity – which is estimated to account for one-quarter of cross-country differences in industry productivity. But the ways in which skilled workers are allocated to different job roles and firms also matters. Higher productivity is observed in industries with lower labour market mismatches and where high-skilled workers are employed in larger and more dynamic firms. Differences in these patterns of allocation can account for at least 12% of the productivity gaps between countries. These findings highlight the importance of policies aimed at enhancing adult skills and structural reforms to improve labour market adaptability and reallocation. Keywords: adult skills; human capital; labour allocation; labour productivity; OECD; PIAAC; R&D intensity; skill mismatch; structural reforms (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1834-en Access Statistics for this paper More papers in OECD Economics Department Working Papers from OECD Publishing Contact information at EDIRC. |
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