Declining cognitive skills among Korean workers: Drivers and improvement measures

MinSub Kim and Yoonsoo Park

No 149, KDI Focus from Korea Development Institute (KDI)

Abstract: Strengthening workforce competencies and labor productivity has become increasingly important amid rapid advances in automation and industrial transformation. However, international comparative findings show that the cognitive skills of Korean workers decline steeply with age, raising concerns about labor productivity. While multiple factors contribute to this decline, the primary driver appears to be a wage structure that provides insufficient incentives for skills development. To promote labor productivity growth, wage systems based on skills and performance need to be expanded, alongside the provision of broader opportunities for upskilling and reskilling.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kdifoc:343515

DOI: 10.22740/kdi.focus.e.2026.149

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