OECD Development Centre
Session 10 The challenges of skills and labour mobility from a regional perspective
Latin America
David Khoudour Head of the Migration and Skills Unit
G20 Knowledge Sharing Workshop on Human Resource Development; Skills and Labour Mobility 7-8 October 2015 Latin America faces the challenge of the middle-income trap
Middle Income Trap in Latin America vs. selected OECD economies (per capita GDP; 1990 USD)
Source: OECD-ECLAC-CAF (2015), Latin American Economic Outlook 2015. Education, Skills and Innovation for Development Latin America faces the challenge of the middle-income trap
Middle Income Trap in Latin America vs. selected OECD economies (per capita GDP; 1990 USD)
Source: OECD-ECLAC-CAF (2015), Latin American Economic Outlook 2015. Education, Skills and Innovation for Development Latin America faces the challenge of the middle-income trap
Middle Income Trap in Latin America vs. selected OECD economies (per capita GDP; 1990 USD)
Source: OECD-ECLAC-CAF (2015), Latin American Economic Outlook 2015. Education, Skills and Innovation for Development The region is characterised by a large skills gap…
Firms identifying an inadequately educated workforce as a major constraint (Percentage of formal firms, circa 2012)
Eastern Europe & Central 13.7 Asia
High income: OECD 17
South Asia 20
Middle East & North Africa 20
East Asia & Pacific 21
Sub-Saharan Africa 23.4
World 23.8
Latin America & Caribbean 35.9
Source: World Bank Enterprise Surveys … and by poor performances in education
Performance in mathematics in PISA as a function of GDP per capita (2012) 600
SGP HKG KOR 550 JPN CHE EST NZL CAN POL BEL
VNM FIN DEU AUT AUS CZE FRA IRL 500 LVA SVN ISL NOR PRT DNK NLD RUS ESP GBR USA LTU HRV SVK ISR ITA HUN SWE ROM GRC SRB TUR 450 BGR CYP KAZ ARE
PISA Maths, 2012 Maths, PISA THA CHL MEX MYS CRI URY 400 ALB JOR TUN BRA ARG IDN COL PER
350 0 10000 20000 30000 40000 50000 60000 70000 80000 GDP per capita (PPP, current international $), 2012 Source: OECD/PISA 2012 PISA performance: social mobility vs. education quality, 2013
Mean PISA score 650 High quality South-East Shanghai-China Asia 600
Chinese Taipei Hong Kong-China Singapore Korea 550 Japan Macao-China Austria Slovenia Switzerland Liechtenstein BelgiumCzech Republic Netherlands Poland Finland Germany Viet Nam Estonia Australia Canada Low social New Zealand High social 500 Slovak RepublicFrance Denmark Ireland United Kingdom Iceland mobility Latvia mobility Luxembourg Russian Federation Italy Norway Portugal Spain Hungary Lithuania Sweden GreeceUnited States Croatia Romania Israel 450 Bulgaria Serbia Chile Turkey United Arab Emirates Malaysia Kazakhstan Uruguay Costa Rica Thailand Montenegro Mexico 400 Argentina Jordan Brazil Qatar Peru Latin Tunisia America Colombia Indonesia 350
Low quality 300 30 25 20 15 10 5 0 Percentage of variation in performance explained by the PISA index of socioeconomic status 20% of the youth are neither in employment, education, nor training
Youth neither in employment, education, nor training (NEET) (Share of the population between 15 and 24 years, 2011)
30
25
20
15
10
5
0 HND GTM SLV COL MEX PAN DOM ALC PER URY NIC BRA ARG VEN CRI ECU PRY BOL OCDE
Nota: ALC es el promedio de Argentina, Bolivia, Brasil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Rep. Dominicana, Uruguay y Venezuela. Promedio OCDE sin Canadá, Chile, Japón, México y Nueva Zelanda. Fuente: OIT, (2013) "Trabajo decente y juventud en América Latina. Políticas para la acción“, disponible en http://www.ilo.org; y ILOSTAT Employment and occupations in LAC tend to be low-skilled…
Low skills (education and task)
Source: OECD-ECLAC-CAF (2015), Latin American Economic Outlook 2015. Education, Skills and Innovation for Development … in stark contrast with OECD countries
High skills (education and task)
Source: OECD-ECLAC-CAF (2015), Latin American Economic Outlook 2015. Education, Skills and Innovation for Development High levels of informality reflect the existence of low-productive and unprotected jobs
Labour informality in Latin America (Share of workers between 15-64 years who do not contribute to the social security system, circa 2013)
90
80
70
60 ALC-19, 55%
50
40
30
20
10
0 HND NIC BOL GTM PER PRY SLV MEX ECU VEN DOM COL JAM ARG PAN BRA CHL CRI URY
Fuente: Banco Interamericano de Desarrollo, IDB Labor Markets and Social Security Information System (SIMS), sobre la base de encuestas de horages nacionales Skills in Latin America (and beyond): some questions
Quality of data How big is the skills gap? Informal sector Which skills are needed? Skills policies How to reach informal workers and firms? How to involve the private sector? How to finance skills policies (labour taxes vs. other)? Policy evaluation – Vocational training Duration, contents? Wages and employment? Long-term impacts? OECD Development Centre
Session 10 The challenges of skills and labour mobility from a regional perspective
Latin America
Thank you!
G20 Knowledge Sharing Workshop on Human Resource Development; Skills and Labour Mobility 7-8 October 2015