Skills, Human Capital, and Economic Development
This paper presents a skills index for developing countries in Asia as a first step toward developing a Global Skills Index. The Asian Skills Index is roughly modeled on the European Skills Index for Organisation for Economic Co-operation and Devel...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099711405022213873/IDU0a3c8b36905b5804c630ac440bfd816339016 http://hdl.handle.net/10986/37399 |
| Summary: | This paper presents a skills index
for developing countries in Asia as a first step toward
developing a Global Skills Index. The Asian Skills Index is
roughly modeled on the European Skills Index for
Organisation for Economic Co-operation and Development
countries. However, the Asian Skills Index is substantially
more complicated to develop. In addition to data
limitations, the Asian Skills Index incorporates several
structural and institutional features of labor markets in
Asian countries, such as vulnerable employment and
unemployment among the highly educated, which are specific
to Asian countries. In addition, the newly developed
learning-adjusted years of schooling indicator plays an
integral role in the Asian Skills Index. Using the k-means
clustering algorithm, the paper identifies a comparable
group of Asian developing countries for which it develops an
index of the country’s skills system. While studies on human
capital focus only on education, the Asian Skills Index is a
more comprehensive construct since it goes beyond just
education and skills development. By incorporating labor
market conditions within which education and skills can
thrive and be translated into productive output, a skills
system provides crucial economic context for the human
capital development process. Using the Asian Skills Index,
the paper provides some economic estimates and policy recommendations. |
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