The book unravels the links among education, training, and labor market outcomes. It shows that, over the last decade, declining earnings premia for higher levels of education have been an important factor in helping to reduce inequality. The good news is that the main factor behind reduced earnings premia is a shift in the balance of supply and demand for skills— and not a decline in learning achievement. These positive findings suggest that LAC might at last be catching up in the race between education and technology. However, the study also documents causes for concern. A large achievement gap between LAC and the advanced economies and East Asia augers badly for the region’s competitive potential—and skill shortages might already be constraining the region’s growth potential. The industries that have expanded most in recent years are users of traditional cognitive abilities rather than industries that demand “new economy” skills, such as high-level analytical and organizational leadership skills. A shortage of such skills might be pushing the region away from the development of cutting-edge industries. This dynamic highlights the urgent need to address problems of quality and market relevance in secondary and tertiary education. The book will be obligatory reading for education, social protection, and labor market policy makers, and for economists interested in the constraints to LAC’s development potential over the next decade.
Skills for the 21st Century in Latin America and the Caribbean
Skills for the 21st Century in Latin America and the Caribbean (LAC) shows how the expansion of education systems is contributing to increased economic growth and helping to improve income distribution and reduce poverty—and asks what needs to be done to reinforce these trends.
Aedo • Walker
ISBN 978-0-8213-8971-3
SKU 18971
D i r e c t i o n s i n D e v e lo p m e n t
Human Development
Skills for the 21st Century in Latin America and the Caribbean Cristian Aedo and Ian Walker