Labor Market Skills Research Articles

‘I enjoy it a bit, but I wouldn’t want to do it in the future’: pupil aspirations for STEM careers in lower secondary school

ABSTRACT At a time when the focus of school science policies in many nations is to encourage more pupils to study science for longer, a better understanding of who is and is not interested in STEM careers will play an important role in shaping the guidance that schools can provide their pupils and the interventions that seek to inspire more young people to remain in the science stream. This paper explores the career aspirations of more than 4000 pupils at the end of lower secondary school in the UK. It considers the relationship between career aspirations, pupil characteristics, and school-based factors linked to enjoyment of and motivation for learning about science. The findings show that most pupils enjoy and look forward to studying science and feel that they are successful at it whether they aspired to a career in STEM or not. The study also confirmed the multi-dimensional nature of STEM career aspirations in which underlying inequalities, particularly linked to gender and ethnicity, were very much apparent. The complexity of these relationships confirms what decades of initiatives have told us – that increasing the number of young people who study science and later enter the highly skilled STEM labour market is no easy task.

FACTORS INFLUENCING YOUTH EMPLOYMENT IN EU

Youth unemployment is not only a challenge in Europe but also a global issue, with varying degrees of severity across different countries. The causes and potential solutions for youth unemployment differ widely, highlighting the need for tailored approaches. Given the long-term risks associated with prolonged unemployment, addressing this issue is crucial, as young people represent the future potential of every nation. This topic has garnered significant media attention and has been a prominent discussion point in various business and policy forums. Within the European Union, youth unemployment is a high priority on the policy agenda. The European Commission has recently launched the “Youth Opportunities Initiative” to support unemployed young people. This initiative aims to provide funding for apprenticeship and entrepreneurship programs, facilitate company placements, and offer guidance for young individuals with business ideas. Current levels of youth unemployment need to be understood in the context of increased labor market flexibility, an expansion of higher education, youth migration, and family legacies of long-term unemployment. Compared with previous recessions, European-wide policies and investments have significantly increased with attempts to support national policies. We argue that understanding youth unemployment requires a holistic approach that combines an analysis of changes in the economic sphere around labor market flexibility, skills attainment, and employer demand, as well as understanding the impact of family legacies affecting increasingly polarized trajectories for young people today.

The Digital Edge: Skills That Matter in the European Labour Market after COVID-19

Following the COVID-19 pandemic crisis, the emphasis on digitization and robotization has grown at an unprecedented rate in the global economy, resulting in significant changes to the labour market composition and increasing the value of digital skills. The aim of this article is to emphasize the ways in which people’s digital abilities and appetite for online activities are connected to job productivity (salary levels) and to determine which individual internet-based digital skills are genuinely important and correlated with better wages. We employed a Principal Component Analysis (PCA-type factorial analysis) with orthogonal rotation to gain a general understanding of the main components that synthesize the digital capabilities of individuals from the European countries analyzed. We decreased the dimensionality of our initial dataset to two major components, namely comprehensive online skills and digital social and media skills, keeping more than 80% of the overall variability. We then evaluated the potential association between the two created components and the average hourly wages and salaries. Since the end of the COVID-19 pandemic, we have observed an important shift in the impact of digital and internet skills on the job market in Europe. Thus, the development of comprehensive internet skills is highly correlated with individuals’ more effective integration into the labour market in Europe in general and the EU in particular, evidenced by better wage and salary levels (r = 0.740, p < 0.001). On the other hand, we found no correlation between the possibility of obtaining higher salaries for employees and the second component, digital social and media skills. The novelty of our research lies in its specific focus on the unique and immediate impacts of the pandemic, the accelerated adoption of digital skills, the integration of comprehensive individual internet skills, and the use of the most recent data to understand the labour market’s characteristics. This new approach offers fresh insights into how Europe’s workforce could evolve in response to unprecedented challenges, making it distinct from previous studies of labour market skills.

Labour market skills, endogenous productivity and business cycles

This paper analyses how labour market heterogeneity affects unemployment, productivity and business cycle dynamics. To this aim, we set up a model with asymmetric search and matching frictions across skilled and unskilled workers, and endogenous productivity through R&D investment and intangible capital accumulation. Skill mismatch and skill-specific labour market institutions have three main effects on business cycles and growth dynamics. First, the relative scarcity of skilled workers increases the natural rate of unemployment and reduces total factor productivity with long-run effects on the growth rate of output. Second, skill heterogeneity in the labour market generates asymmetric outcomes and amplifies measures of employment, wages and consumption inequality. Finally, the model provides important insights for the Phillips and Beveridge curves. Incorporating skill heterogeneity leads to a flattening of the Phillips curve as wages and unemployment respond unevenly across skill types. Also, the model generates sideward shifts of the Beveridge curve following business cycle shocks, with the extent of these shifts depending on the degree of skill heterogeneity.

Social Inequality in the Age of AI: Implications for Labor, Wage Distribution, and Worker Power

This article critically examines the multifaceted impact of artificial intelligence (AI) on social stratification, situated within the broader historical context of automation-driven productivity advances. Drawing on empirical evidence and evolving theoretical frameworks, we elucidate the intricate dynamics of labor market transformation, skill obsolescence, and wage distribution in the nascent AI epoch. We employ a nuanced task-based approach to move beyond simplistic dichotomies of skill-biased technological change, offering a granular understanding of AI-induced labor market polarization. Our analysis reveals that AI is reshaping the contours of inequality through complex interactions of skill restructuring, wage decoupling from productivity, and shifts in worker bargaining power. We argue that the current trajectory of AI development may accelerate capital-biased technological change, potentially exacerbating existing inequalities. This article not only contributes to the scholarly discourse on technological unemployment and income inequality but also serves as a foundation for evidence-based policymaking in navigating the uncharted territories of human-AI interaction.

Tacit Skills of Return Migrants to Poland and Lithuania from the UK: Twenty Years After the May 2004 EU Enlargement

ABSTRACT This study investigates the reintegration of tacit skills among Polish and Lithuanian migrants returning from the UK amid Brexit and the COVID-19 pandemic. Using a CAWI survey of 740 returnees, it explores the application of tacit skills acquired abroad in their origin countries’ labor markets. The research reveals the challenges return migrants face in utilizing their overseas-acquired skills, influenced by local labor market structures, employers’ attitudes, and individual experiences. The findings contribute to understanding the role of international migration in skill distribution and labor market dynamics, focusing on the personal and economic reintegration of return migrants.

Who Benefits from AI Adoption? Skill Complementarity and Labour Market Dynamics

Who Benefits from AI Adoption? Skill Complementarity and Labour Market Dynamics

Peran Asosiasi Pengusaha Indonesia (APINDO) Memanfaatkan kebijakan Sistem Informasi Pasar Kerja (SIPK) 2024

The Indonesian Employers Association (APINDO) plays a crucial role in addressing the gap between workforce supply and industrial demand. This study explores how APINDO leverages the Labor Market Information System (SIPK) to align human resources with industry needs, thereby enhancing employment rates and improving the efficiency of the labor market. The SIPK provides comprehensive data on labor market trends, job vacancies, and skill requirements, enabling employers to make informed decisions about hiring and training. Through interviews with key stakeholders and analysis of SIPK data, this research highlights the effectiveness of APINDO's strategies in optimizing human resource absorption. The findings indicate that APINDO's utilization of SIPK not only bridges the gap between job seekers and employers but also contributes to the development of a more responsive and adaptive workforce, meeting the evolving needs of industries in Indonesia. The study concludes with recommendations for enhancing the SIPK platform and expanding APINDO's initiatives to further support the alignment of labor supply and demand.

Exploring the agency of skilled refugees in the British labour market

AbstractDrawing on the analytical distinction between agency and social structure, I provide insights into four strategies used by skilled refugees to navigate labour market constraints: pre‐empting, to avoid present labour market constraints; circumventing present constraints, to realise future benefits; persisting in the search for skilled jobs via mobilising longstanding patterns of thought and action; and exercising voice to drive future system improvements that benefit similar others. It is striking how these strategies harmonised self‐interest and others' interests. I highlight the interplay between social structure and agency in labour market strategies to depict skilled refugees as reflexive agents of change. I highlight gender‐based nuances in skilled refugees' labour market moves and conclude by outlining the implications of my findings for HRM practice.

Destinations after higher education non-completion: the role of social background and pre-tertiary vocational qualifications

Prior research has shown that students from lower socio-economic backgrounds are less likely to graduate. We examine if this can be explained by background-specific pathways into higher education. Many students in Germany enter higher education with a vocational qualification and prior vocational qualifications occur more often among students from lower socio-economic backgrounds. We argue that vocational qualifications shift opportunity structures and opportunity costs of students who have to decide between continuing higher education and alternative options. We therefore examine if parental background and vocational qualifications are associated with the destinations after non-completion. We distinguish the destinations “re-entering higher education”, “vocational training” and “skilled employment”. Using the German Educational Panel Study (NEPS starting cohort 6), we apply competing risks models. Our results show that non-completers from higher socio-economic backgrounds are more likely to re-enter higher education than non-completers from lower socio-economic backgrounds. The higher rates of transfer to skilled employment among non-completers from lower backgrounds are mainly due to the fact that they more often hold a vocational qualification and have good chances to enter the skilled labour market without additional educational investments. Our results hence shed some new light on the question how vocational training “diverts” lower background students from higher education.

The impact of capital goods trade liberalization on regional labor market in China

The impact of trade liberalization on regional employment dynamics remains a topic of ongoing debate and scrutiny. This study aims to provide a nuanced understanding by focusing specifically on the effects of imported capital goods trade. Our study analysis reveals that capital goods trade liberalization predominantly leads to a substitution effect between capital and labor, resulting in a reduction in overall regional employment levels. However, we also find complementary effects between capital and high-skilled labor, alongside substitution effects on low-skilled labor, which collectively influence the regional labor market's skill structure. Furthermore, our study identifies the heterogeneous spillover effects of capital goods trade liberalization on regional labor markets, varying across different regions and city scales. We argue that investing in region skill development resources can help align the workforce with global factors, fostering positive interaction between regions.

An Assessment on the Prospect of Gig Economy to Create Employment Opportunity

The study describes a gig economy as a free market system in which enterprises regularly use independent contractors for temporary assignments and where temporary positions are prevalent. The so-called "gig economy" considerably impacts the workplace, seen in every sector of the economy. It has had a profound impact on how people interact with one another at work and has brought about a fundamental change in the way our economic study operates as a whole. Due to the unrivaled advantages of working as a gig economy worker, the number of people who do so will continue to increase. This is because many of the most skilled people opt to work as gig economy workers full-time. Moreover, because employment opportunities in Bangladesh are pretty uncommon, and many educated individuals with degrees still need help finding work, the gig economy will be an excellent option for all people still looking for work. Even while it provides workers with several benefits, such as flexibility, employment, independence, and many more, the gig economy also has a detrimental impact on the working environment inside the firm. The research uses 104 respondents' data, which gathers information on model variables and user demographics. For the research, the study has taken five variables: employment opportunity, labor market conditions, education and skill development, economic conditions, and government regulations. The study treated the employment opportunity as a dependent variable, while the other four were treated as independent variables. The purpose of this research is to find out the current developments in the gig economy and its advantages and downsides, both internationally and in Bangladesh, which have been discussed in this article. Moreover, how it can help create employment opportunities and help the country reduce unemployment.

In Pursuit of Mutual Benefit: Applying the Extended Diamond Model to the US-China Trade Dispute

This article recalls for cooperation between the United States (US) and China amid their escalating competition. It emphasizes the necessity and possibility of collaboration, advocating for win-win outcomes rather than antagonistic win-lose or lose-lose scenarios. The analysis utilizes the extended diamond model to assess comprehensive national competitiveness, identifying both countries’ comparative advantages across various sub-factors. China’s strengths lie in basic sub-factors: unskilled labor supply, market quantity, infrastructure availability, and competitive stability. On the other hand, the US excels in advanced sub-factors: skilled labor supply, market quality, synergy creation, and competitive dynamics. The contrasting but complementary strengths and weaknesses highlight the multifaceted nature of their competitive strengths. Recognizing and leveraging these respective advantages can lead to collaborative synergies, fostering mutual benefits. Such an approach enables both nations to enhance their national competitiveness and achieve mutual prosperity. This study specifically underscores the potential for the US and China to contribute synergistically to each other’s growth by capitalizing on their unique strengths. The findings also provide implications for multinational corporations (MNCs) in choosing the locations for their overseas operations, particularly in the US and China.

Science for All? School Science Education Policy and STEM Skills Shortages

ABSTRACT Whether enough highly qualified STEM workers are being educated and trained in the UK is an important question. The answer has implications not only for educators, employers and policymakers but also for individuals who are currently engaged in, or are considering entering, education or training in this area. Set against a policy backdrop that prioritises students studying more science for longer, this paper considers long-term patterns of participation in STEM education – from school science through to graduate entry into the highly skilled STEM labour market. Using a unique dataset that extends across seven decades and comprises many hundreds of thousands of students, the paper finds that patterns of participation in most STEM subjects have varied little over the period considered; suggesting that efforts to increase the numbers of students studying science in school has had limited impact on the throughput of students who study STEM, including the pure sciences, at university level and, subsequently, on the number of graduates who would be available to undertake highly skilled work in areas for which degree-level skills are a pre-requisite.

Design and Implementation of an Industry 4.0 Micro-Credential Program

Traditional post-secondary education models are designed for students looking to enter the skilled labour market rather than up-skilling or re-skilling the existing labour market. Micro-credentials, which are short-duration courses available outside of credited degree programs, are a promising mechanism for post-secondary institutions to engage in these continuing education opportunities. In this paper, we present a micro-credential program that is complementary to the existing engineering degree program while also relevant and accessible to industry. The program contributes to a larger micro-credential movement within the province of British Columbia and provides a model for other institutions looking to enter and collaborate within the micro-credential ecosystem.

Labor Market Information System: A Review of Some Practices

Accurate and up-to-date labor market information system, which is conducted with the involvement of public decision markers, technical and vocational education and training (TVET) practitioners, employers and their associations, employee associations, training providers and learners, is an essential feature of a successful TVET system. Similarly, engagement of multiple TVET stakeholders is an important component of overall skills development system which leads to developing responsive labor market skill needs, supporting prioritized economic sectors to foster dialogue among the stakeholders to maintain balance demand and supply of labor right. It enhances integration of labor market requirements in the overall training and skills development cycle and ensures that trainees acquire market-relevant skills for their employability and self-employment. In the context of changing labor market conditions, collecting, compiling, analyzing, and disseminating current and future needs from the TVET customers can support better matching for training and employment. As labor markets are constantly evolving and changing, labor market analysis therefore needs to be conducted on a regular basis so that real time labor market information can be obtained. But the active and regular labor market information process is underexplored in a developing country like Nepal. The main objective of the article is to explore the common practices of Nepali labor market information system and the problems faced by the TVET system. Thus, the article addresses the information gap by diving deep into the clear understanding of labor market, practices of labor market information processes in some South Asian countries, including Nepal and issues and challenges facing the Nepali labor market information process.

Trading Off Equality and Employment Gains in Sub-Saharan Africa

ABSTRACT This study examines the interaction of trade, inequality, and unemployment in Sub-Saharan Africa (SSA) from 1997 to 2021. Results from the mean group and pooled mean group estimation revealed that international trade explains a 6% rise in inequality and a 43% rise in unemployment. Our findings provide evidence that international trade, as currently structured, is not beneficial to SSA countries, despite the adoption of trade liberalization policies and regional trade agreements (RTAs). We argue that SSA countries could still derive gains from trade if they undertake massive structural reforms that address labor market frictions and skills gaps in the region.

Occupational choice, satisfaction and success of PhD graduates in East Asia and the West: A systematic review

AbstractThe globally expanding doctoral education and the diminishing availability of academic job opportunities have prompted an increasing proportion of PhD graduates to seek employment beyond academia, drawing a growing scholarly interest. However, the existing literature on doctoral career pathways tends to be fragmented and dispersed, given the idiosyncratic individual and educational characteristics of doctorates grappling with the complex structural factors. To depict a comprehensive picture of the diversifying employment trajectories of doctorates across various geographical, disciplinary and sectoral contexts, this study conducts a systematic review, scouring 831 pertinent journal articles from the Web of Science. Following a set of inclusion criteria, 31 papers were ultimately selected to identify the key factors shaping employment trajectories of PhD graduates at structural (national supply and demand), institutional (employers' perceptions) and individual (doctorates' characteristics) levels. Drawing on the boundaryless and value‐based career theories, the authors develop a four‐dimension analytical framework, within which the findings of the 31 papers in East Asian and Western contexts are analysed. Overall, stakeholders in Western systems generally recognise the trend of PhD graduates securing non‐academic employment, whereas East Asian nations appear less receptive to this agenda. Meanwhile, due to their strong emphasis on research skills utilisation and employment stability, PhD graduates in certain economies find it challenging to pursue satisfying and successful careers, warranting increased attention. Building on the findings, we propose a four‐quadrat model in an effort to provide a tool for evaluating the capacity to absorb doctoral workforces of specific systems by categorising the doctoral professions. Highlighting shared patterns observed across various higher education systems and distinct trends prevalent in specific economies, this paper addresses key topics in doctoral education and doctorate employment literature such as labour market conditions, employment outcomes, job satisfaction, skills (mis)matches and sustainable careers.

Child Penalties in Labour Market Skills

Child Penalties in Labour Market Skills

International student mobility and poverty reduction: A cross-national analysis of low- and middle-income countries

While educational expansion is often acknowledged as a driving force in poverty reduction, there has been limited scholarly exploration of the influence of international higher education on poverty alleviation. With the dramatic surge of international student mobility, tripling from two million in 1997 to over six million by 2021, previous research has predominantly focused on individual benefits such as skill acquisition and labour market outcomes, overlooking the broader societal effects in students’ home countries. This study examines how international higher education influences poverty reduction in the home countries of students from low- and middle-income nations, drawing on a theoretical framework rooted in transnationalism. Employing dynamic panel data analysis with the System Generalised Method of Moments approach on data from 1999 to 2018, this study finds that while the immediate effect of international student mobility on reducing extreme poverty is not significant, its long-term association over a fifteen-year period is significant. These results suggest the transformative potential of international higher education for sustainable development, emphasising its systemic and long-term effects in poverty alleviation. Our research highlights that policy interventions expanding access to international higher education could be an important element of poverty reduction strategies in low- and middle-income countries.