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Education, age and skills: an analysis using the PIAAC survey

Author

Listed:
  • Jorge Calero

    (Universidad de Barcelona & IEB)

  • Inés P. Murillo Huertas

    (Universidad de Extremadura)

  • Josep Lluís Raymond Bara

    (Universidad Autónoma de Barcelona & IEB)

Abstract

The main aim of this paper is to analyse the evolution of adult skills, as captured by cognitive competencies assessed in the PIAAC, across age cohorts, explicitly taking into account that the quality of schooling might change from one cohort to another. We estimate a model that relates numeracy and literacy competencies to age, schooling, gender and variables related to both family background and labour market performance. The specification allows us to control for changes in the efficiency of the transformation of schooling into competencies when drawing age-skill profiles. Our results show that the effect of ageing on skills, once isolated from cohort effects related to schooling, decreases monotonically across consecutive cohorts. The evolution of the efficiency of the transformation of schooling into both numeracy and literacy skills shows a remarkably similar pattern. Nonetheless, this evolution differs substantially between education levels, with the efficiency of the transformation of schooling into skills showing a steadier profile for intermediate than it does for higher education. Finally, empirical evidence is provided for the decomposition of the differences in the skill levels of the older vs. the prime age generations. The results suggest that the progressive expansion of schooling across younger generations partially offsets the negative effect of the irrepressible ageing of society on skills.

Suggested Citation

  • Jorge Calero & Inés P. Murillo Huertas & Josep Lluís Raymond Bara, 2016. "Education, age and skills: an analysis using the PIAAC survey," Working Papers 2016/3, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2016-3
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    References listed on IDEAS

    as
    1. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    2. Richard Desjardins & Arne Jonas Warnke, 2012. "Ageing and Skills: A Review and Analysis of Skill Gain and Skill Loss Over the Lifespan and Over Time," OECD Education Working Papers 72, OECD Publishing.
    3. Borghans, Lex & Green, Francis & Mayhew, Ken, 2001. "Skills Measurement and Economic Analysis: An Introduction," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 375-384, July.
    4. Eric A. Hanushek, 1979. "Conceptual and Empirical Issues in the Estimation of Educational Production Functions," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 351-388.
    5. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    6. Green, David A. & Riddell, W. Craig, 2013. "Ageing and literacy skills: Evidence from Canada, Norway and the United States," Labour Economics, Elsevier, vol. 22(C), pages 16-29.
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    Cited by:

    1. Jorge Calero & Rosario Ivano Scandurra, 2016. "Modelling adult skills in OECD countries," Working Papers 2016/17, Institut d'Economia de Barcelona (IEB).

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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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