why skills matter - further results from the survey of adult skills

1

Why skills matter FURTHER RESULTS FROM THE SURVEY OF ADULT SKILLS

Andreas SchleicherDirector for the Directorate of Education and Skills

Note on statistical data on Israel The statistical data for Israel are supplied by and are under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

Survey of Adult Skills in brief

in literacy, numeracy and problem solving in technology-rich environments.

215 thousand adults…Representing 815 millions 16-65 year-olds in 33 countries/economies

Took an internationally agreed assessment…

The assessment was administered either in computer-based or paper-based versions

Survey of Adult Skills in briefSample sizes ranged from..

a minimum of approximately 4 500 to a maximum of nearly 27 300

The survey collected background information of adults for about 40 minutes.

Respondents with very low literacy skills were directed to a test of basic “reading component” skills.

The survey also collects a range of generic skills such as collaborating with others and organising one’s time, required of individuals in their work.

5

Literacy

The ability to...Understand, evaluate, use and engage with written texts.

In order to..Achieve one’s goals, and to develop one’s knowledge and potential.Literacy encompasses a range of skills from..The decoding of written words and sentences The comprehension, interpretation and evaluation of complex texts.

Numeracy

The ability to…Access, use, interpret and communicate mathematical information and ideas

In order to.. Engage in and manage the mathematical demands of a range of situations in adults. Numeracy involves Managing a situation or solving a problem in a real context, by responding to mathematical content/information/ideas represented in multiple ways.

Technology Rich Problem Solving

The ability to…Use digital technology communication tools and networks to acquire and evaluate information, communicate with others and perform practical tasks.

The assessment focuses on the abilities to…Solve problems for personal, work and civic purposes by setting up appropriate goals and plans, and accessing and making use of information through computers and computer networks.

“Key information-processing skills”

Survey of Adult Skills Skills assessed

6

Literacy itemLevel = 4 (low)

Sample items - Literacy

7

Survey of Adult Skills Participating countries: Round 1

2011-12

(**see notes A and B in the Reader’s Guide).

8

2014-15

Survey of Adult Skills Participating countries, Round 2

(**see notes A and B in the Reader’s Guide).

9

SURVEY OF ADULT SKILLS

Why skills matter?What people know and what they can do with what they know has a major impact on their life chances

05

1015202530354045

Percentage-point difference between Level 4 or 5 and Level 1 or below

Literacy and social outcomes

Labour productivity and the use of reading skills at work

1.7 1.9 2.1 2.3 2.5 2.7 2.9 3.1 3.33

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

3.947390079498293.99452424049377

3.87328219413757

3.25809645652771

3.51154541969299

4.1335654258728

3.39450836181641

3.95124363899231

4.171305656433114.09933185577393

4.1042947769165

3.56388282775879

4.1478853225708

3.62434101104736

3.89589357376099

3.69882988929749

3.40119743347168

3.47815847396851

4.13035488128662

3.67882919311523

4.46475791931152

3.33932209014893

3.27336406707764

3.56388282775879

3.67882919311523

3.8836236000061

4.02177381515503

3.4242627620697

3.88567900657654

4.16821432113648

f(x) = 0.666315819730388 x + 2.04298620530865R² = 0.344886544481482

Mean use of reading skills at work

Labo

ur p

rodu

ctivi

ty (l

og)

12


The level and distribution of skills differs markedly across countriesMuch of the variation in skills proficiency is observed within countries, so most countries have significant shares of struggling adults

Jakarta

(Indonesia

)Chile

Turkey

Italy

Spain

GreeceIsr

ael

Slove

nia

Singapore

France

Ireland

Lithuania

Poland

OECD average

Northern Ire

land (UK)

Cyprus¹

Austria

United St

ates

Germany

DenmarkKorea

England (UK)

Canada

Slova

k Republic

Czech

Republic

Russian Fe

deration²

Flanders

(Belgium)

Estonia

Norway

Sweden

Australia

New Zealand

Netherlands

Finland

Japan150

170

190

210

230

250

270

290

Literacy score

Literacy proficiency of adults

1. Note regarding CyprusNote by TurkeyThe information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Turkey recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Turkey shall preserve its position concerning the “Cyprus issue”.Note by all the European Union Member States of the OECD and the European UnionThe Republic of Cyprus is recognised by all members of the United Nations with the exception of Turkey. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.

Slova

k Republic

Japan

Cyprus¹

Czech

RepublicKorea

Lithuania

Russian Fe

deration

Estonia

AustriaTurke

y

Ireland

Norway

DenmarkIta

ly

New Zealand

Netherlands

OECD average

Greece

Northern Ire

land (UK)

Sweden

Flanders

(Belgium)

Poland

Australia

Finland

Spain

Slove

nia

Germany

France

England (UK)

Canada

United St

ates

Jakarta

(Indonesia

)Chile

Israel

Singapore

0

10

20

30

40

50

60

70

80

90Interquartile range

Variation in literacy proficiencyOnly 2.4% of 55-65-year-olds Singaporeans reach

literacy level 4

Low performers in literacy and/or numeracy

Japan

Finlan

d

Netherl

ands

Slova

k Rep

ublic

Norway

Czech Rep

ublic

Flanders

(Belg

ium)

Swed

en

Estonia

Cyprus

Russian

Federation

Austria

DenmarkKorea

New Ze

aland

Lithuan

ia

Australia

Germany

Canada

OECD av

erage

Engla

nd (UK)

Northern

Irelan

d (UK)

Poland

Ireland

United St

ates

Singa

pore

Slove

niaFra

nce

Greece Spain

Israe

lIta

ly

Turke

yChile

Jakarta

(Indonesi

a)0

10

20

30

40

50

60

70

80

in both literacy and numeracy in literacy onlyin numeracy only

Proportion of the popu-lation

At or below Level 1

A quarter of 55-65-year-old Singaporeans don’t reach

Level 1 (OECD 8%)

15 20 25 30 35 40 45 50 55 60 65210

220

230

240

250

260

270

280

290

300

OECD literacy Singapore literacyOECD numeracy Singapore numeracy

Literacy and numeracy proficiency by age: Singapore

180 200 220 240 260 280 300Score

Literacy skills in younger and older generations 55-65 to 16-24 years

Average 55-65 year-olds

Average 16-24 year-olds

Chile

Singapore

Lithuania

France

Germany

New Zealand

US

UK

22

1968-1977 1978-1987 1998-2007 2008-20161988-1997

1972-1980 1981-1990 2001-2010 2011-20201991-2000

55-65 45-54 35-44 25-34 16-24

Age distribution of the Survey of Adult Skills

Age range:

University graduation year

High-School graduation year

TurkeyGreece

ChileLithuania

IsraelUnited States

PolandRussian Federation

IrelandSlovak Republic

England (UK)Northern Ireland (UK)

JapanOECD average

SloveniaEstonia

DenmarkAustria

AustraliaCanada

New ZealandGermany

Czech RepublicNorway

Flanders (Belgium)Netherlands

SwedenFinland

KoreaSingapore

100 80 60 40 20 0 20 40

Level 2 Level 3 Level 2 Level 3

Proportion of adults at levels 2 or 3

Digital problem-solving skills

Young adults (16-24 year-olds) Older adults (55-65 year-olds)

Evolution of employment in occupational groups defined by level of skills proficiency

19981999

20002001

20022003

20042005

20062007

20082009

-20

-15

-10

-5

0

5

10

15

20

25

Occupations with highest average scores

Occupations with next to highest av-erage scores

Occupations with next to lowest av-erage scores

Occupations with lowest average scores

%

The kind of things that are easy to teach are

now easy to automate, digitize or outsource

Robotics

>1m km, one minor accident,

occasional human intervention

Augmented Reality

A lot more to come

3D printingSynthetic biologyBrain enhancementsNanomaterialsEtc.

The Race between Technology and Education

Inspired by “The race between technology and education” Pr. Goldin & Katz (Harvard)

Industrial revolution

Digital revolution

Social pain

Universal public schooling

Technology

Education

Prosperity

Social pain

Prosperity

36


More education does not automatically translate into better skills, better jobs and better lives

37

Mean literacy proficiency and distribution of literacy scores, by educational attainment

Lower than high school

High school

College

100 125 150 175 200 225 250 275 300 325 350 375 400

United States

Score

25th percentile Mean 75th

percentile

Lower than high school

High school

College

100 125 150 175 200 225 250 275 300 325 350 375 400

Japan

Score

Qualifications don’t alwaysequal skills

Level 2Level 1 and below

150

170

190

210

230

250

270

290

310

330Less than upper secondary Upper secondary Tertiary

Literacy proficiency by level of educational attainment (25-65 year olds):

150

170

190

210

230

250

270

290

310

330Less than upper secondary Upper secondary Tertiary

Literacy proficiency by level of educational attainment (25-34 year olds):

Percentage of adults in level 4/5 literacy proficiency by level of education

Japa

n

Finl

and

Net

herla

nds

Swed

en

Aus

tralia

Nor

way

New

Zea

land

Engl

and

(UK

)

Uni

ted

Stat

es

Can

ada

OEC

D A

ve...

Ger

man

y

Fran

ce

Sing

apor

e

Kor

ea

Slov

enia

Isra

el

Gre

ece

Spai

n

Lith

uani

a

Italy

Chi

le

Turk

ey

Jaka

rta (I

nd...

0

5

10

15

20

25

30

35

40Below upper secondary education Upper secondary Tertiary education%

43


In some countries, social background has a major impact on skillsIn Singapore, Germany, Indonesia, Chile and the United States, social background has a major impact on literacy skills. The children of parents with low levels of education have significantly lower proficiency than those whose parents have higher levels of education, even after taking other factors into account.

Chile

Jakarta

(Indonesia

)

Turkey

GreeceCyp

rusIsr

ael

Russian Fe

deration³

Lithuania

Italy

Spain

Slove

nia

Ireland

Canada

Austria

Germany

Denmark

United St

ates

OECD Average

Estonia

Korea

Czech Republic

Norway

Slova

k Republic

France

Singapore

Northern Ire

land (UK)

Poland

England (UK)

Sweden

New Zealand

Flanders

(Belgium)

Australia

Netherlands

Japan

Finland

190

210

230

250

270

290

310

330

Series1Neither parent has attained upper secondaryAt least one parent has attained tertiary

Literacy proficiencyby parental education

Russian Fe

deration²

Lithuania

Poland

Slova

k Republic

Slove

nia

Estonia

GreeceCyp

rus

Jakarta

(Indonesia

)

Czech

Republic

Finland

Korea

DenmarkIta

ly

France

Israel

Ireland

OECD average

JapanSp

ain

New Zealand

Austria

Sweden

Australia

Northern Ire

land (UK)

United St

ates

England (UK)

Singapore

Canada

Norway

Flanders

(Belgium)

Netherlands

Germany

ChileTurke

y-10

0

10

20

30Numeracy (Men - Women) Literacy (Men - Women)

Advantage to men

Advantage to women

Literacy and numeracy score differences between men and women

Russian Fe

deration

Lithuania

Poland

Slova

k Republic

Slove

nia

Estonia

Greece

Cyprus¹

Jakarta

(Indonesia

)

Czech

Republic

Finland

Korea

DenmarkIta

ly

France

Israel

Ireland

OECD average

JapanSp

ain

New Zealand

Austria

Sweden

Australia

Northern Ire

land (UK)

United St

ates

England (UK)

Singapore

Canada

Norway

Flanders

(Belgium)

Netherlands

Germany

ChileTurke

y-10

0

10

20

30 Numeracy (Men - Women)

Advantage to men

Advantage to women

Gender gaps in literacy and numeracy

-10

0

10

20

30Literacy (Men - Women)

Advantage to men

Advantage to women

48


Successful integration is not simply a matter of time. In some countries, the time elapsed since immigrants arrived appears to make little difference to their proficiency in literacy and numeracy, suggesting either that the incentives to learn the language of the receiving country are not strong or that policies that encourage learning the language of the receiving country are of limited effectiveness

…and also of immigrantsForeign-language immigrants with low levels of education tend to have low skills

Literacy proficiency by immigrant background

Chile Italy

GreeceSp

ain

Singapore

Israel

Slove

niaFra

nce

Lithuania

Ireland

Northern Ire

land (UK)

Cyprus

OECD average

Korea

Austria

Slova

k Republic

Czech Republic

Germany

United St

ates

Denmark

Russian Fe

deration²

England (UK)

Flanders

(Belgium)

Estonia

Canada

New Zealand

Norway

Sweden

Netherlands

Finland

150

170

190

210

230

250

270

290

Native-born In host country 5 or fewer years In host country more than 5 years Series4

Chile Italy

GreeceSp

ain

Singapore

Israel

Slove

niaFra

nce

Lithuania

Ireland

Northern Ire

land (UK)

Cyprus

OECD average

Korea

Austria

Slova

k Republic

Czech Republic

Germany

United St

ates

Denmark

Russian Fe

deration²

England (UK)

Flanders

(Belgium)

Estonia

Canada

New Zealand

Norway

Sweden

Netherlands

Finland

150

170

190

210

230

250

270

290

Native-born In host country 5 or fewer years Series3

Chile Italy

GreeceSp

ain

Singapore

Israel

Slove

niaFra

nce

Lithuania

Ireland

Northern Ire

land (UK)

Cyprus

OECD average

Korea

Austria

Slova

k Republic

Czech Republic

Germany

United St

ates

Denmark

Russian Fe

deration²

England (UK)

Flanders

(Belgium)

Estonia

Canada

New Zealand

Norway

Sweden

Netherlands

Finland

150

170

190

210

230

250

270

290

Native-born Series2

50


Success is increasingly about building skills beyond formal education

Participation in all education and training, by literacy level (Adults aged 25-65 years)

0

20

40

60

80

100Levels 4/5 Level 1 or below%

Lessons from strong

performers

High quality initial education and lifelong learning• Investing in high quality early

childhood education and initial schooling, particularly for children from disadvantaged backgrounds

• Financial support targeted at disadvantage

• Opportunities and incentives to continued development of proficiency, both outside work and at the workplace.

Lessons from strong

performers

Make learning everybody’s business• Governments, employers,

workers and parents need effective and equitable arrangements as to who does and pays for what, when and how

• Recognise that individuals with poor skills are unlikely to engage in education on their own and tend to receive less employer-sponsored training .

Lessons from strong

performers

Effective links between learning and work• Emphasis on workbased

learning allows people to develop hard skills on modern equipment and soft skills through real-world experience

• Employer engagement in education and training with assistance to SMEs

• Strengthen relevance of learning, both for workplace and workers broader employability .

Lessons from strong

performers

Allow workers to adapt learning to their lives• Flexibility in content and

delivery (part-time, flexible hours, convenient location)

• Distance learning and open education resources .

Lessons from strong

performers

Identify those who can benefit from learning most• Disadvantaged adults need to

be offered and encouraged to improve their learning

• Foreign-language migrants• Older adults• Show how adults can benefit

from improved skills, both economically and socially .

Lessons from strong

performers

Improve transparency• Easy-to-find information about

adult education activities• Combination of easily

searchable, up-to-date online information and personal guidance and counselling services

• Less educated workers tend to be less aware of the opportunities

• Recognise and certify skills proficiency .

59


Putting skills to effective useSkills will only translate into better economic and social outcomes if they are used effectively

Level 1 or below

Level 2 Level 3 Levels 4 and 5

Literacy

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Reading at work Writing at work

Inde

x of

use

Skills use at work, by proficiency levelOECD average

Level 1 or below

Level 2 Level 3 Levels 4 and 5

Numeracy

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Numeracy at work

Most frequent use = 5

Less frequent use = 1



Jakarta

(Indonesia

)

Turkey Ita

lySp

ainIsr

ael

Lithuania

Korea

OECD avera

ge

Irelan

d

United St

ates

Czech Republic

Russian Fed

eration³

England (U

K)

Slovak R

epublic

Norway

Australia

Netherlands

Japan1.5

2.0

2.5

3.0

3.5

150

200

250

300

350

Reading at work (left hand axis) Literacy proficiency (rigth hand axis)

Read

ing

use

at w

ork

Profi

cien

cy in

lite

racy

scor

e

Skills use at work and skills proficiency of working population

Reading Writing Numeracy ICT Problem solving2.0

2.5

3.0

3.5

1-10 employees 11-50 employees 51-250 employees 251-1000 employees1000+ employees

Inde

x of

use

Skills use at work, by proficiency level, by firm size (OECD average)



Effect of education, literacy proficiency and reading use at work on wagesPercentage change in wages associated with a one standard deviation increase in years of education, proficiency in literacy and reading use at work

GreeceSp

ain

Lithuania

Estonia

Turke

y

Norway

France

Sweden

Cypru

s

OECD average

Australi

a

Ireland

Germany

Chile

Slovak

Republic

Israel

United States

0

5

10

15

20

25

30

35

Years of education Proficiency (literacy) Reading at work%

020

40

Qualification mismatch

020

40

Literacy mismatch

020

40

Field-of-study mismatch

Mismatched (over) Mismatched (under) Total mismatch

Mismatch (percent of workers)

%

%

%

Effect of qualification, literacy and field-of-study mismatch on wagesPercentage difference in wages between overqualified, overskilled or field-of-study mismatched workers and their well-matched counterparts

Israel

United States

Canada

Cypru

sChile

Denmark

Ireland

OECD average

Estonia

New Zealand

Lithuania

Netherlands

Czech

Republic

Norway

Austria

Flanders

(Belgium)

Jakarta (

Indonesia)

-30-25-20-15-10

-505

101520

Over-qualified(Ref: same qualifications, well-matched job)

Overskilled in literacy(Ref: same skills, well-matched job)

Field-of-study mismatched(Ref: same field of staudy, well-matched job)

%

66


Skills are everybody’s business

Lessons from strong

performers

Guidance• Timely data about demand for

and supply of skills• Competent personnel who

have the latest labour-market information at their fingertips to steer learners

• Qualifications that are coherent and easy to interpret .

Lessons from strong

performers

Flexible labour-markets• Labour-market arrangements

that facilitate effective skill use and address skill mismatches

• Encourage mobility to optimise skill match .

Lessons from strong

performers

Help employers make better use of workers skills• Flexible work arrangements

that accommodate workers with care obligations and disabilities

• Encourage older workers to remain in the labour market

• Encourage employers to hire those who temporarily withdrew from the labour market .

Lessons from strong

performers

Help economies move up the value chain• Governments can influence

both employer competitiveness strategies and product-market strategies, which determine in what markets the company competes

• Strengthen 21st century skills• Foster entrepreneurship.

Data products

Data ExplorerPublic Use Files (all countries except Australia)Background QuestionnaireCodebookSAS and STATA tools IEA Data AnalyserTechnical ReportEducation and Skills On-line

72

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