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World Bank Document The Skills Road Public Disclosure Authorized Skills for Employability in the Kyrgyz Republic Public Disclosure Authorized Public Disclosure Authorized Mohamed Ihsan Ajwad, Joost de Laat, Stefan Hut, Jennica Larrison, Ilhom Abdulloev, Robin Audy, Zlatko Nikoloski, and Federico Torracchi Public Disclosure Authorized The Skills Road Skills for Employability in the Kyrgyz Republic Mohamed Ihsan Ajwad, Joost de Laat, Stefan Hut, Jennica Larrison, Ilhom Abdulloev, Robin Audy, Zlatko Nikoloski, and Federico Torracchi Standard Disclaimer: . This report is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: . The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978- 750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. Suggested citation: Ajwad, Mohamed Ihsan, Joost de Laat, Stefan Hut, Jennica Larrison, Ilhom Abdulloev, Robin Audy, Zlatko Nikoloski, and Federico Torracchi. 2014. “The Skills Road: Skills for Employability in the Kyrgyz Republic.” World Bank, Washington, DC. i Table of Contents List of Figures ..................................................................................................................................................................... iii Abbreviations and Acronyms ........................................................................................................................................... v Acknowledgements ............................................................................................................................................................ vi Overview .............................................................................................................................................................................. 1 1 Structural Changes and the Labor Market ............................................................................................................. 4 1.1 Structural transformations are changing the demand for skills ................................................................. 4 1.2 The high employment rate bodes well for overall skills use ...................................................................... 8 1.3 Job quality remains a serious concern for effective skills use .................................................................. 11 2 Better Skills Are Good Predictors of Labor Market Outcomes ...................................................................... 14 2.1 Education is valued in the labor market ..................................................................................................... 14 2.2 Skills and employability are closely linked .................................................................................................. 17 2.3 Workers with better skills use those skills more often in the workplace ............................................... 23 2.4 There are deficiencies in the job search and skill signaling process ....................................................... 24 3 Skill Formation ......................................................................................................................................................... 26 3.1 Skills are formed throughout the life cycle ................................................................................................. 26 3.2 Educational attainment rates are high, but the Kyrgyz Republic is missing important opportunities for skill development at various stages of the life cycle ........................................................................... 27 3.3 Cognitive skill outcomes and educational attainment are correlated, but wide variations exist within education levels ............................................................................................................................................... 32 4 The Skills Roadmap in the Kyrgyz Republic ....................................................................................................... 36 References .......................................................................................................................................................................... 39 Appendix A: Questionnaire Sections ............................................................................................................................. 45 Appendix B: Constructing Cognitive Skills Scores Methods for Scale Development and Scoring .................... 46 Appendix C: Constructing Non-Cognitive Skills Scores Methods for Scale Development and Scoring ........... 54 Appendix D: Summary Tables ........................................................................................................................................ 63 Appendix E: Cognitive and Non-Cognitive Skill Mean Scores ................................................................................. 72 Appendix F: SABER ECD 2013—Summary of policy options to improve ECD in the Kyrgyz Republic ...... 73 ii List of Figures Figure 1: GDP growth in the Kyrgyz Republic has been unstable compared to Europe and Central Asia (ECA), 1991–2013 ........................................................................................................................................ 4 Figure 2: Productivity has grown slowly and remains behind other comparator countries, 2000–2011 ........ 5 Figure 3: The share of agriculture in GDP has declined, while the share of services has increased significantly, 1990–2012 .............................................................................................................................. 6 Figure 4: The majority of individuals in the Kyrgyz Republic are employed in the services sector, 2013 ..... 6 Figure 5: The evolution of skill intensity reveals an increase in “new economy” skills, 2006–2012 ............... 7 Figure 6: Skills are a constraint for employers in the Kyrgyz Republic ................................................................ 8 Figure 7: Employment rates by age, for men and women, 2013 ........................................................................... 9 Figure 8: Women in the Kyrgyz Republic are more active in the labor market than their counterparts in neighboring countries, 2013 ....................................................................................................................... 9 Figure 9: Economic well-being does not greatly affect choice to migrate, 2013 .............................................. 10 Figure 10: Informal salaried work is particularly common in the agricultural sector and for individuals with a secondary general or less than secondary education ............................................................................. 11 Figure 11: High shares of physical work and repetitive tasks, 2013 ...................................................................... 12 Figure 12: Use of a computer at work is relatively low, 2013 ................................................................................ 13 Figure 13: Tertiary graduates and secondary special/technical graduates have better labor market outcomes than individuals with a secondary general education, 2013 ................................................................. 14 Figure 14: Employment outcomes are positively correlated with preschool attendance as a child, 2013 ...... 15 Figure 15: The average returns to higher education are significant among salaried workers aged 25–64 in the Kyrgyz Republic ......................................................................................................................................... 16 Figure 16: Tertiary education is perceived useful, but other levels of education less so ................................... 16 Figure 17: A worker’s skillset can be divided into three types of skills ................................................................ 17 Figure 18: Cognitive and non-cognitive skills are generally better in young compared to older workers, especially among the inactive population, 2013 .................................................................................... 19 Figure 19: All cognitive skills and most non-cognitive skills are better among public and private sector employees relative to the self-employed ................................................................................................
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