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What Explains Variation in the Skills of Central European Adults? Kata Orosz Presentation prepared for the 2 nd Central European Higher Education Cooperation Conference Budapest, June 17, 2016

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Page 1: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

What Explains

Variation in the

Skills of Central

European

Adults?

Kata Orosz

Presentation prepared for the 2nd Central European

Higher Education Cooperation Conference

Budapest, June 17, 2016

Page 2: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Definition of Skill

1) Productive: using skills at work are productive of value

2) Expendable: skills are enhanced by training and development

3) Social: skills are socially determined

Green (2013)

Page 3: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Data source: The Survey of

Adult Skills (PIAAC)

– Survey of adults aged 16 to 65

– Samples min. 5000 individuals in participating countries

– Nationally representative when sample weights are applied

– Skill domains: literacy, numeracy, and problem-solving in technology-rich

environments

– Valid cross-culturally and cross-nationally

– Administered in national languages

– Will be repeated over time

Source: OECD (2016)

Page 4: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Cross-country variation in adult

skills

Sample sizes refer to analytic samples, which exclude adults younger than 20 years old, adults with no paid work experience, and observations with missing

values on independent variables used in the regression models. Sample sizes reported refer to analytic sample sizes for the literacy and numeracy domains;

analytic sample sizes are smaller in the problem-solving domain. Data: PIAAC 2012.

274

277

281

266

261

272

276

279 280

250

255

260

265

270

275

280

285

Literacy Numeracy Problem-solving

Czech Republic (n=4632) Poland (n=6169) Slovak Republic (n=4581)

Page 5: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Empirical approach

– Present study modelled after Mellander (2014); relationship between adult skills,

education and work experience in Nordic countries

– Analytic samples: Adults age 20-65 w/ min. 1 year of paid work experience in CZ, PL, SK

with no missing values on variables included in the model

– Operationalization of skills: Proficiency score in literacy, numeracy, problem-solving

– Path analysis: Recursive equations to account for endogeneity of work experience

x1

x2

y

x1 : Educational attainment

x2 : Work experience

y : Skill

Page 6: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Model specifications

Equation #1:

Work Experience = g(Age + Age2 + Educational Attainment + Gender + Number of children + Gender x Nu er of hildre ) + ε1

Equation #2:

Skill = h(Age + Age2 + Parental Education + Educational Attainment + Labor Force Participation +

[Predi ted] Work E perie e + O upatio T pe) + ε2

– Parental Education (Below upper secondary; Upper secondary; Tertiary)

– Educational Attainment ( Below upper secondary, Upper secondary; Ba helor s / Short- le tertiar ; Master s / Lo g-cycle tertiary)

– Labor Force Participation (Employed; Unemployed; Out of the labor force; Not known)

– Occupation Type (Skilled; Semi-skilled white collar; Semi-skilled blue collar; Elementary; Not employed in past 5 years)

Sample weights and bootstrap replications used in all analyses for variance estimation.

Page 7: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Cross-country variation in

relationship of education & work

Regression results from a nationally representative sample of adults 20-65 who had at least one year of work experience. Sample sizes denote unweighted

sample sizes. Regression results are from the first equation of the recursive equation models; control variables in the first equation include age, the quadratic

term of age, gender, number of children, and the interaction of gender and number of children. βBachelor denotes the difference between upper secondary

education versus a short-cycle tertiary credential. βMaster denotes the difference between upper secondary education versus a long-cycle tertiary credential.

*** indicates significant association at the alpha < 0.001 level. R2 can be interpreted as the proportion of variance in work experience that is explained by the

model. Data: PIAAC 2012.

Model Country Sample

size βBachelor βMaster R2

Work Experience = Age + Age2 +

Educational Attainment +

Gender + Number of children +

(Gender x Number of children)

CZ 4632 -0.70*** -3.10*** 0.88

PL 6169 0.88*** -0.36*** 0.75

SK 4581 -0.77*** -2.08*** 0.85

Page 8: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Predictors of adult skills in

Central Europe

Regression results from a nationally representative sample of adults 20-65 who had at least one year of work experience. Regression results are from the second

equation of the recursive equation models. *** indicates significant association at the alpha < 0.001 level. R2 can be interpreted as the proportion of variance in

skills that is explained by the model. Data: PIAAC 2012.

Literacy Numeracy Problem-solving

Coefficient P > t Sign. Lev. Coefficient P > t Sign. Lev. Coefficient P > t Sign. Lev.

Age -0.792 0.240 * -2.359 0.000 *** -5.371 0.000 ***

Age2 0.004 0.188 -0.007 0.128 -0.021 0.000 ***

Parental education

Upper secondary 9.855 0.000 *** 10.489 0.000 *** 9.948 0.000 ***

Tertiary 16.294 0.000 *** 21.222 0.000 *** 23.422 0.000 ***

Educational attainment

Less than upper secondary -16.73 0.000 *** -18.81 0.000 *** -5.646 0.014 *

Post-secondary, non-tertiary 7.911 0.000 *** 4.978 0.001 ** 3.700 0.043 *

Professional 17.198 0.000 *** 13.246 0.010 ** 8.755 0.000 ***

Bachelor / Short-cycle tertiary 15.022 0.000 *** 15.678 0.000 *** 11.710 0.000 ***

Master / Long-cycle tertiary 23.749 0.000 *** 24.899 0.000 *** 25.975 0.000 ***

Employment status

Unemployed 0.178 0.845 1.226 0.524 7.129 0.000 ***

Out of the labor force -1.347 0.129 -0.181 0.909 6.177 0.001 **

Not known -4.454 0.779 -2.572 0.767 6.278 0.700

Work experience (predicted) 0.419 0.233 2.495 0.000 *** 5.032 0.000 ***

Occupational type

Semi-skilled white collar -9.163 0.000 *** -9.716 0.000 *** -9.057 0.000 ***

Semi-skilled blue collar -17.783 0.000 *** -17.558 0.000 *** -19.874 0.000 ***

Elementary -18.877 0.000 *** -18.502 0.000 *** -17.219 0.000 ***

Not employed in past 5 years -12.961 0.000 *** -3.818 0.261 16.842 0.001 **

Cons. 274.634 0.000 *** 297.764 0.000 ***

n (unweighted) 15382 15382 9718

R2 0.24 0.20 0.03

Page 9: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Between-country variation in

predictors of adult skills

Skill domain

βBachelor

βMaster

βWorkExp

CZ (n=4632) 18.41*** 27.36*** 1.01*

Literacy PL (n=6169) 17.92*** 27.44***

SK (n=4581) 8.42*** 15.93*** 1.20***

CZ (n=4632) 25.29*** 38.09*** 2.59***

Numeracy PL (n=6169) 19.38*** 27.60*** 2.75***

SK (n=4581) 6.33** 21.93*** 1.49***

CZ (n=3401) 11.61+ 31.07*** 3.09***

Problem-solving PL (n=3596) 15.97*** 26.46*** 3.68***

SK (n=2721) 11.28** 23.19*** 3.00***

Regression results from a nationally representative sample of adults 20-65 who had at least one year of work experience. Sample sizes denote unweighted

sample sizes. Regression results are from the second equation of the recursive equation models; control variables in the second include age, the quadratic term

of age, gender, parental education, labor force participation, and occupational type. Educational attainment denotes the difference between up to upper

secondary education versus postsecondary education up to bachelor degree. Work experience denotes an additional year of paid work experience during the

i di idual s lifeti e. *** i di ates sig ifi a t asso iatio at the alpha < . le el, ** at the alpha < . le el, a d * at the alpha < 0.05 level, and + at the alpha

< 0.1 level. Data: PIAAC 2012.

Page 10: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Skill trade-off between

educational attainment & work

Regression results from a nationally representative sample of adults 20-65 who had at least one year of work experience. Sample sizes denote unweighted

sample sizes. Regression results are from the second equation of the recursive equation models; control variables in the second include age, the quadratic term

of age, gender, parental education, labor force participation, and occupational type. Magnitude of skill trade-off is calculated by dividing βBachelor and βMaster with

βWorkExp. Data: PIAAC 2012.

Skill domain Country Skill

trade-off -

Bachelor

Skill

trade-off -

Master

Literacy

CZ (n=4632) 18 27

PL (n=6169)

SK (n=4581) 7 13

Numeracy

CZ (n=4632) 10 15

PL (n=6169) 7 10

SK (n=4581) 4 15

Problem-solving

CZ (n=3401) 4 10

PL (n=3596) 4 7

SK (n=2721) 4 8

Page 11: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Discussion

– Typical skill proficiency levels are the same in CE nations

– Higher education credential is negatively linked to work experience; relationship

varies across CE nations

– Both higher education credential and work experience positively linked to adult

skills

– Positive relationship between higher education and skills is more substantive

than positive relationship between work experience and skills

– Strength of positive association between higher education and skills varies

across CE nations

Page 12: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Implications for future research

and policy

– Higher education and skill: Causal and selection mechanisms

– Variation in skill predictors: Role of contextual forces

– Societal relevance of postsecondary education: Higher education credential a

strong predictor of adult skill proficiency

Page 13: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Thank you for your

attention!

Kata Orosz

[email protected]

Page 14: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

References

Green, F. (2013). Skills and skilled work: An economic and social analysis (1st ed.). Oxford: Oxford

University Press.

Mellander, E. (2014). The role of work experience for skills: Findings for the Nordic countries based on

the PIAAC survey. In A. Malin (Ed.), Associations between age and cognitive foundation skills in the

Nordic countries (pp. 131-170). Jyväskylä: University of Jyväskylä.

OECD (2013). OECD Skills Outlook 2013: First results from the survey of adult skills. Paris: Author.

OECD (2016). The Survey of Adult Skills (PIAAC) [Website]. Retrieved from

https://www.oecd.org/site/piaac/surveyofadultskills.htm

Page 15: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Appendix

Page 16: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Example of a literacy proficiency

item from PIAAC

– Item name: Library search

– Difficulty: Level 4

The test-taker is asked to identify a book suggesting that the claims made both for and against genetically modified foods are unreliable. He or she needs to read the title and the description of each book in each of the entries reporting the results of the bibliographic search in order to identify the correct book. Many pieces of distracting information are present. The information that the relevant book suggests that the claims for and against genetically modified foods are unreliable must be inferred from the state e t that the author des ri es ho oth sides i this hotl o tested de ate ha e a ufa tured propaga da, tried to dupe the pu li a d…[te t e ds].

Source: OECD, 2013, p. 66

Page 17: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Proficiency by skill domains

Skill domain Proficiency at Level 3 (scores from 276 to less than 326 points)

Literacy Adults performing at Level 3 can understand and respond appropriately to dense or lengthy texts,

including continuous, non-continuous, mixed, or multiple pages. They understand text structures and

rhetorical devices and can identify, interpret, or evaluate one or more pieces of information and make

appropriate inferences. They can also perform multi-step operations and select relevant data from

competing information in order to identify and formulate responses.

Numeracy Adults at Level 3 can successfully complete tasks that require an understanding of mathematical

information that may be less explicit, embedded in contexts that are not always familiar, and

represented in more complex ways. They can perform tasks requiring several steps and that may involve

a choice of problem-solving strategies and relevant processes. They have a good sense of number and

space; can recognize and work with mathematical relationships, patterns, and proportions expressed in

verbal and numerical form; and can interpret and perform basic analyses of data and statistics in texts,

tables, and graphs.

Skill domain Proficiency at Level 1 (scores from 241 to less than 291 points)

Problem-solving At Level 1, adults can complete tasks in which the goal is explicitly states and for which the necessary

operations are performed in a single and familiar environment. They can solve problems whose solutions

involve a relatively small number of steps, the use of a restricted range of operators, and a limited

amount of monitoring across a large number of actions.

Source: OECD, 2013

Page 18: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Variation in adult skills across

selected Central European nations

Source: OECD (2013)

274 274

267

273

276 276

260

269

250

255

260

265

270

275

280

Czech Republic Slovak Republic Poland OECD average

Literacy skill (mean) Numeracy skill (mean)

Page 19: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Variation in skills of tertiary-educated adults

across selected Central European nations

Source: OECD (2013)

301

295

297 297

310

305

290

297

280

285

290

295

300

305

310

315

Czech Republic Slovak Republic Poland OECD average

Literacy skill (mean) Numeracy skill (mean)

Page 20: What Explains Variation in the Skills of Central European ...elkanacenter.ceu.edu/.../basicpage/71/kataorosz.pdfKata Orosz Presentation prepared for the 2 nd Central European Higher

Research Questions

1. How do adult skills vary across selected Central European nations?

2. What are the relationships between educational attainment, work experience,

and adult skills in the selected Central European nations, after controlling for

differences in individual background characteristics and labor market

experiences?

3. How do the relationships between educational attainment, work experience,

and adult skills vary across the selected Central European nations?