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Age, Ageing and Skills: Results from the Survey of Adult Skills

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  • Marco Paccagnella

    (OECD)

Abstract

This paper presents a comprehensive analysis of the link between age and proficiency in information-processing skills, based on information drawn from the Survey of Adult Skills (PIAAC). The data reveal significant age-related differences in proficiencies, strongly suggesting that proficiency tends to “naturally” decline with age. Age differences in proficiency are, at first sight, substantial. On average across the OECD countries participating in PIAAC, adults aged 55 to 65 score some 30 points less than adults aged 25 to 34 on the PIAAC literacy scale, which is only slightly smaller than the score point difference between tertiary educated and less-than-upper-secondary educated individuals. However, despite their lower levels of proficiency, older individuals do not seem to suffer in terms of labour market outcomes. In particular, they generally earn higher wages, and much of the available empirical evidence suggests that they are not less productive than younger workers. Older and more experienced individuals seem therefore able to compensate the decline in information processing skills with the development of other skills, generally much more difficult to measure. On the other hand, proficiency in information-processing skills remain a strong determinant of important outcomes at all ages: this makes it important to better understand which factors are the most effective in preventing such age-related decline in proficiency, which does not occur to the same extent in all countries and for all individuals. Two broad interventions seem to be particularly promising in this respect. First, it is important to ensure that there is adequate and effective investment in skills development early in the life-cycle: as skills beget skills, starting off with a higher stock of human capital seems also to ensure smaller rates of proficiency decline. Second, it is equally important that policies are in place that provide incentives to individuals (and firms) to invest in skills across the entire working life. In this respect, changes in retirement policies can not only have the short-term effect of providing some reliefs to public finance, but have the potential to radically reshape incentives to stay active, to practice their skills and to invest more in training, thus helping to maintain high levels of proficiency. Ce document présente une analyse approfondie du lien entre l’âge et les compétences en traitement de l’information, sur la base de données tirées de l’Évaluation des compétences des adultes (PIAAC). Les données mettent au jour des différences significatives de niveau de compétences en fonction de l'âge, portant fortement à croire que le niveau de compétences tend à diminuer « naturellement » avec l'âge. Les différences de niveau de compétences en fonction de l’âge sont, à première vue, substantielles. En moyenne, dans les pays de l'OCDE participant au PIAAC, les adultes âgés de 55 à 65 ans obtiennent des résultats inférieurs d’environ 30 points à ceux des adultes âgés de 25 à 34 ans sur l'échelle de compétences en littératie du PIAAC, un écart de score seulement légèrement inférieur à celui observé entre les diplômés de l’enseignement tertiaire et les individus dont le niveau de formation est inférieur au deuxième cycle du secondaire. Cependant, en dépit de leur niveau plus faible de compétences, les individus plus âgés ne semblent pas lésés en termes de résultats sur le marché du travail. En particulier, ils perçoivent en général des revenus plus élevés, et d’après la plupart des données empiriques disponibles, ne sont pas moins productifs que les travailleurs plus jeunes. Les individus plus âgés et plus expérimentés semblent donc en mesure de compenser la baisse de leurs compétences en traitement de l'information par le développement d'autres compétences, généralement beaucoup plus difficiles à mesurer. En revanche, la maîtrise des compétences en traitement de l’information reste l’un des principaux facteurs déterminants de résultats importants à tous les âges : il apparaît donc essentiel de mieux comprendre quels facteurs sont les plus à même de prévenir une telle baisse du niveau de compétences avec l'âge, l’ampleur de cette dernière n’étant pas la même dans tous les pays et pour tous les individus. Deux grandes interventions semblent particulièrement prometteuses à cet égard. Tout d'abord, il est important de veiller à l’adéquation et à l’efficacité des investissements dans le développement des compétences dès le plus jeune âge : les compétences engendrant les compétences, un stock de capital humain plus élevé au départ semble également garantir un degré moindre de déclin des compétences. Deuxièmement, il est tout aussi important de garantir la mise en oeuvre de politiques offrant aux individus (et aux entreprises) des incitations à investir dans les compétences tout au long de la vie active. À cet égard, les changements apportés aux politiques de retraite peuvent non seulement avoir un effet à court terme en allégeant quelque peu les finances publiques, mais sont également susceptibles de remodeler radicalement les incitations à rester actif, à entretenir ses compétences et à investir davantage dans la formation, contribuant ainsi à maintenir des niveaux élevés de compétences.

Suggested Citation

  • Marco Paccagnella, 2016. "Age, Ageing and Skills: Results from the Survey of Adult Skills," OECD Education Working Papers 132, OECD Publishing.
  • Handle: RePEc:oec:eduaab:132-en
    DOI: 10.1787/5jm0q1n38lvc-en
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    Cited by:

    1. Barth, Erling & Davis, James C. & Freeman, Richard B. & McElheran, Kristina, 2023. "Twisting the demand curve: Digitalization and the older workforce," Journal of Econometrics, Elsevier, vol. 233(2), pages 443-467.
    2. Andrea Cegolon & Andrew Jenkins, 2021. "Engaging in cognitively stimulating activities and change in cognitive function: a cross-country analysis using SHARE," DoQSS Working Papers 21-15, Quantitative Social Science - UCL Social Research Institute, University College London.
    3. Vladimir Gimpelson, 2019. "Age and Wage: Stylized Facts and Russian Evidence," HSE Economic Journal, National Research University Higher School of Economics, vol. 23(2), pages 185-237.
    4. Chernina, Eugenia & Gimpelson, Vladimir, 2022. "Do Wages Grow with Experience? Deciphering the Russian Puzzle," IZA Discussion Papers 15068, Institute of Labor Economics (IZA).
    5. Martin, John P., 2018. "Skills for the 21st Century: Findings and Policy Lessons from the OECD Survey of Adult Skills," IZA Policy Papers 138, Institute of Labor Economics (IZA).
    6. Carrino, Ludovico & Glaser, Karen & Avendano, Mauricio, 2018. "Later Pension, Poorer Health? Evidence from the New State Pension Age in the UK," MPRA Paper 87575, University Library of Munich, Germany.
    7. Chernina, Eugenia & Gimpelson, Vladimir, 2023. "Do wages grow with experience? Deciphering the Russian puzzle," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 545-563.
    8. Flisi, Sara & Goglio, Valentina & Meroni, Elena Claudia & Vera-Toscano, Esperanza, 2019. "Cohort patterns in adult literacy skills: How are new generations doing?," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 52-65.
    9. Samuel Vézina & Alain Bélanger, 2019. "Impacts of education and immigration on the size and skills of the future workforce," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 41(12), pages 331-366.
    10. Jinyoung Kim & Cyn‐Young Park, 2020. "Education, skill training, and lifelong learning in the era of technological revolution: a review," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 34(2), pages 3-19, November.

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