Labor market dynamics and the expectations of finding a job are believed to be strong determinants of individuals’ educational decisions. Thus, the academic performance and permanency of students in the school system are closely related to their perceptions of unemployment. The impact of high unemployment rates on schooling decisions may operate through, at least, two effects: a “family” effect, which urges individuals to dropout owing to limited access to educational resources, and a “local labor market” effect that encourages them to remain in school. In this paper we, specifically, analyze the impact of a household’s labor market situation and the effect of local labor unemployment on i) the risk of early school dropout and ii) academic performance, which typically declines before the decision to dropout is taken. These relations are assessed via a set of multilevel linear and logistic regression analyses using PISA 2006, 2009 and 2012 microdata. Results suggest that both parental unemployment and local labor market unemployment increase the risk of school dropout by reducing student academic performance. However, the negative “family” and “local labor market” effects seem to decrease as labor market conditions worsen.

Most recent available evidence points to the scarce efficacy of grade retention for levelling the performance of students. Yet, the fact that many countries persist in applying this measure reflects longstanding traditions, cultural factors and social beliefs as well, it would seem, the lack of robust empirical evidence to do otherwise. We contribute to the literature by analysing the impact of grade retention on the reading competencies of lower secondary school students in Spain, a country where almost one out of every three students will repeat at least one grade by age 16. We overcome the absence of longitudinal data by creating a pseudo-panel that combines microdata from two international assessments, PIRLS and PISA. Having controlled for reverse causality, our study confirms the negative and heterogeneous impact of grade retention. This paper provides new evidence of the pressing need to rethink this educational policy, and our results highlight the importance of early intervention as opposed to only employing remedial measures.

How important is mastering information and communication technologies (ICT) in modern labor markets? We present the first evidence on this question, drawing on unique data that provide internationally comparable information on ICT skills in 19 countries. Our identification strategy relies on the idea that Internet access is important in the formation of ICT skills, and we implement instrumental-variable models that leverage exogenous variation in Internet availability across countries and across German municipalities. ICT skills are substantially rewarded in the labor market: returns are at 8 percent for a one-standard-deviation increase in ICT skills in the international analysis and are almost twice as large in Germany. Placebo estimations show that exogenous Internet availability cannot explain numeracy or literacy skills, suggesting that our identifying variation is independent of a person’s general ability. Our results further suggest that the proliferation of computers complements workers in executing abstract tasks that require ICT skills.

The main aim of this paper is to analyse the evolution of adult skills, as captured by cognitive competencies assessed in the PIAAC, across age cohorts, explicitly taking into account that the quality of schooling might change from one cohort to another. We estimate a model that relates numeracy and literacy competencies to age, schooling, gender and variables related to both family background and labour market performance. The specification allows us to control for changes in the efficiency of the transformation of schooling into competencies when drawing age-skill profiles. Our results show that the effect of ageing on skills, once isolated from cohort effects related to schooling, decreases monotonically across consecutive cohorts. The evolution of the efficiency of the transformation of schooling into both numeracy and literacy skills shows a remarkably similar pattern. Nonetheless, this evolution differs substantially between education levels, with the efficiency of the transformation of schooling into skills showing a steadier profile for intermediate than it does for higher education. Finally, empirical evidence is provided for the decomposition of the differences in the skill levels of the older vs. the prime age generations. The results suggest that the progressive expansion of schooling across younger generations partially offsets the negative effect of the irrepressible ageing of society on skills.

Competences’ acquisition is the most relevant output in the educational production function. Likewise, the formation of human capital is essential to increase productivity, generate higher monetary returns in the labour market and foster economic growth. However, human capital does not depend exclusively on the formal education aimed at young people but also on lifelong learning. The Workshop focuses on the determinants of skills and competences’ acquisition as well as on the effects that those have in the labour market. We give special attention to research using PIAAC data. However, papers using other type of data or focused on the evaluation of educational policy are also welcome.

Original research papers that cast some light on these issues, especially those from an economic perspective, will be brought together at the Workshop. Although the focus is set on empirical papers, theoretical studies are also welcome. The accepted papers (10) will be presented in plenary sessions that will complement the two keynote speakers’ presentations.

Desde una perspectiva de gestión pública es importante considerar la retribución del profesorado, ya que este colectivo es parte fundamental del gasto educativo. Recientemente ha recibido bastante atención el establecimiento de programas de incentivos salariales, llamados merit pay o pay per performance (pago por rendimiento, PPR), en las enseñanzas no universitarias