Skills and global value chains

Abstract

This study follows a job task-based approach to measure the skills of individuals. It exploits information contained in the OECD Survey of Adult Skills (PIAAC) and conducts an exploratory state-of-the-art factor analysis to obtain six task-based skills indicators that are comparable across 31 countries. By combining the PIAAC-based skills indicators with OECD Trade in Value Added (TiVA) data, light is shed on the way skills and their distributions (at the country-industry level) relate to industry performance and to integration into global value chains (GVCs). The results underline the importance of cognitive skills such as literacy, numeracy and problem solving for any industry to thrive in the global economy. Also, a persistent and positive association with labour productivity and participation in GVCs is observed, at the industry level, for non-cognitive skills such as managing and communication skills, ICT skills and workers’ readiness to learn and to think creatively.