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

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  • Damir STIJEPIC

Abstract

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.

Suggested Citation

  • Damir STIJEPIC, 2020. "Employment effects of skills around the world: Evidence from the PIAAC," International Labour Review, International Labour Organization, vol. 159(3), pages 307-338, September.
    • Handle: RePEc:bla:intlab:v:159:y:2020:i:3:p:307-338
    DOI: 10.1111/ilr.12162
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    Cited by:

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    2. Diris, Ron & Van Vliet, Olaf, 2022. "The Relation between Skills and Job Security: Identifying the Contractual Return to Skills," IZA Discussion Papers 15513, Institute of Labor Economics (IZA).
    3. Damir Stijepic, 2021. "Trends and cycles in U.S. job mobility," Manchester School, University of Manchester, vol. 89(2), pages 203-222, March.
    4. Ezzeddine Belgacem Mosbah & Parakramaweera Sunil Dharmapala, 2022. "Evaluating the Effects of COVID-19 and Vaccination on Employment Behaviour: A Panel Data Analysis Acrossthe World," Sustainability, MDPI, vol. 14(15), pages 1-14, August.

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