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This paper explores the impact of policies and institutions on employment and unemployment of OECD countries in the past decades. Reduced-form unemployment equations, consistent with standard wage setting/price-setting models, are estimated using cross-country/time-series data from 21 OECD countries over the period 1982-2003. In the "average" OECD country, high and long-lasting unemployment benefits, high tax wedges and stringent anticompetitive product market regulation are found to increase aggregate unemployment. By contrast, highly centralised and/or coordinated wage bargaining systems are estimated to reduce unemployment. These findings are robust across specifications, datasets and econometric methods. As policies and institutions affect employment not only via their impact on aggregate unemployment but also through their effects on labour market participation -- particularly for those groups "at the margin" of the labour market, group-specific employment rate equations are also estimated. In the "average" OECD country, high unemployment benefits and high tax wedges are found to be associated with lower employment prospects for all groups studied, namely prime-age males, females, older workers and youths. There is also evidence that group-specific policy determinants matter, such as targeted fiscal incentives. The paper also finds significant evidence of interactions across policies and institutions, as well as between institutions and macroeconomic conditions. Consistent with theory, structural reforms appear to have mutually reinforcing effects: the impact of a given policy reform is greater the more employment-friendly the overall policy and institutional framework. Certain more specific interactions across policies and institutions are found to be particularly robust, notably between unemployment benefits and public spending on active labour market programmes as well as between statutory minimum wages and the tax wedge. Finally, it is shown that macroeconomic conditions also matter for unemployment patterns, with their impact being shaped by policies. (A bibliography is included. Contains 144 footnotes, 9 figures, 3 boxes and 27 tables.)

Numeracy and literacy skills have become increasingly important in modern labour markets. The large gender differences that several studies have identified have therefore sparked considerable attention among researchers and policy makers. Little is known about the moment in which such gaps emerge, how they evolve and if their evolution differs across countries. We use data from large-scale international assessments to follow representative samples of birth-cohorts over time, and analyse how gender gaps in numeracy and literacy evolve from age 10 to age 27. Our results suggest that, across the countries examined, males' advantage in numeracy is smallest at age 10 and largest at age 27. The growth in magnitude of the gender gap is particularly pronounced between the age of 15 and 27. Such evolution stands in sharp contrast with the evolution of the gender gap in literacy, which is small at age 10, large and in favour of females at age 15, and negligible by age 27.

This study uses the PIAAC data to examine the relationships between education system characteristics (e.g. early tracking and vocational education orientation) and distributions of adult numeracy skills. It also investigates the effects of postponing the tracking age and easing university access for students on a vocational track on the average skills and different percentiles of the skills distribution. Correlational analysis suggests that education systems with more students enrolled in vocational tracks have on average higher levels of numeracy skills and more compressed skills distributions between the 50th and 90th percentiles. Further analysis suggests that postponing the tracking age among 14 European countries does not have a significant effect on the average skills of the population. However, it increases skills for individuals at the 10th, 20th, and 30th percentiles of the skill distribution. Expanding university access is associated with an increase in numeracy skills, particularly for individuals at the bottom three deciles of the distribution.

It is well-known that there are large disparities in academic achievement between children of different socio-economic status (SES) backgrounds. This study examines the evolution of disparities in literacy skills between adults of different SES backgrounds. It compares countries' patterns in the evolution of disparities in literacy by SES background as cohorts age and asks which patterns of educational and labour force participation predict a narrowing rather than a widening of these disparities. Since there is no international longitudinal study of skills across the entire adult life span, this study uses three cross-sectional international adult studies (International Adult Literacy Survey, Adult Literacy and Lifeskills and Programme for the International Assessment of Adult Competencies) and matches birth years to create synthetic cohorts. Results indicate that there is large cross-national variation in the evolution of skills disparities associated with SES background. Disparities in literacy proficiency tend to widen when SES disparities in high school completion, professional and blue-collar employment increase. Disparities narrow when workers exit the labour force, a finding that is explained by the large inequalities in the employment experiences of individuals from different SES backgrounds, measured by differences in use of literacy skills at work. These results help to explain cross-national variation in the evolution of skills disparities by SES background, which has implications for policies aimed at closing skills gaps over the life course. [Funding from the OECD Thomas J. Alexander Fellowship Programme.]

This paper describes the development of Turkish Children and Mothers, a project designed to help 5-year-old preschoolers in the Ruhr Valley of Germany develop linguistic, motor, cognitive, and social abilities. The paper also describes various aspects of the project, including those that relate to maternal involvement, educational facilities, the needs of project participants, and cultural factors that should be considered when serving the ethnic Turkish minority that is adapting to German culture. Focusing on issues that arise from learning in a multicultural context, this paper provides numerous brief anecdotes to illustrate how cultural obstacles can be overcome. Contains 49 marginal notes citing one or more references. (HTH)

We assess the relationship between general literacy skills and health status by analysing data from the Programme for the International Assessment of Adult Competencies (PIAAC), an international survey of about 250,000 adults aged 16-65 years conducted by the Organisation for Economic Co-operation and Development (OECD) from 2011-15 in 33 countries/national sub-regions. Across countries, there seems to be a strong and consistent association between general literacy proficiency and self-rated poor health, independent of prior socio-economic status and income. General literacy proficiency also appears to be a mediator of the association between self-education and self-rated poor health. While the literacy-health association is robust over time, it varies in magnitude across countries. It is strongest for those with a tertiary or higher degree and does not appear to exist among young adults (ages 25 to 34 years). Future studies are required to understand the contextual factors that modify the general literacy proficiency-health association.

Germany and Canada are at opposite ends of the debate over language integration and ascension to citizenship. German naturalization contains an explicit language criterion for naturalization. The first German immigration act will not only concentrate on control aspects but also focus on language as a criterion for legal immigration. Canada does not base entry or citizenship on knowledge of either of its official languages. Acquisition of a second language in Canada is voluntary and largely dependent on labor market incentives. This paper offers a comparative review of Canadian and German legal and educational programs. Nine sections focus on the following: "Canadian Immigration Policy: Post 1945"; "Canada's Citizenship Act and Language Requirements"; "Historical Development of Germany's Immigration Policy"; "Confirmation of German Citizenship"; "'Aussiedler' Language Tests"; "Canada's Market-Based Language Tests and Instruction"; "Canada's Language Benchmarks"; "German Language Training"; and "Evaluation of Second Language Acquisition in Canada and Germany." Five appendixes contain excerpts from the German and Canadian law and data on the language support program for ethnic Germans and foreigners in Germany, status 2000. (Contains 3 figures, 11 tables, and 64 references.) (SM)

Empirical studies in the migration literature have shown that migration enclaves (networks) negatively affect the language proficiency of migrants. These studies, however, ignore the choice of location as a function of language skills. Using data on Mexican migration to the United States, this paper examines the location choice of migrants and connects the location decision with their language proficiency. It estimates a conditional logit model using data on Mexican-U.S. migration collected by the Mexican Migration Project. Data are based on an ethno-survey approach. Interviews are generally conducted from December to January, when sojourner U.S. migrants often return to Mexico. These interviews are supplemented with surveys of migrants located in the United States. Results show that Mexican migrants with good English proficiency will choose, on average, to migrate to destinations with smaller ethnic enclaves as their English language proficiency improves, while Mexican migrants with poor English proficiency will choose locations that have large enclaves (since as the size of the enclave increases, the need for using English decreases). Two appendixes contain a data description and an econometric model. (Adjunct ERIC Clearinghouse for ESL Literacy Education.) (Contains 16 references.) (SM)

This paper explores the labor market returns to the General Education Development exam, or GED. Using new data from the Current Population Survey, it examines how the return to the GED varies between U.S. natives and the foreign-born. It finds that foreign-born men who hold a GED but received all of their formal schooling outside of the United States earn significantly more than either foreign-schooled dropouts or individuals with a foreign high school diploma. For foreign-born men with some U.S. schooling, earning a GED brings higher wages than a traditional U.S. high school diploma, although this difference is not statistically different from zero. These patterns stand in contrast to those for U.S. natives, among whom GED recipients earn less than high school graduates but significantly more than dropouts. The effects for natives appear to become larger over the life cycle and do not seem to be due to cohort effects. While it is difficult to attach a purely causal interpretation to the findings, they indicate that the GED may be more valuable in the labor market than some previous research suggests. (Contains 28 references.) (Adjunct ERIC Clearinghouse for ESL Literacy Education) (Author/SM)

This monograph describes a research program that will assess the cumulative effects of education policies on the teaching environment. It also focuses on how these policy outcomes affect the ability of schools to attract and retain highly qualified teachers and principals. The document presents the results of interviews conducted at two elementary schools that were intended to uncover how school-reform policies affected teachers. All of the nine teachers who were interviewed were in the process of incorporating standards, standardized testing, and/or accountability into their daily teaching regimens. The paper comments on the rapid pace of reforms, societal issues, resources for reform implementation, the quality of the teaching environment, and the implementation of future reforms. The interviews revealed that teachers tended to see negative outcomes from reforms, with such side effects as compressed teaching schedules and the neglect of certain subjects. The monograph then turns to schooling in England, Germany, and Japan in a comparative analysis of education policy in these countries. It provides the historical context of the school systems in all three countries, providing information on their governance and organization, how they assess students and provide them access to higher education, how they track students, how they educate students with disabilities, and how they train and develop teachers. (RJM)

This paper presents key indicators of educational and employment status for students making the transition from adolescence to early adulthood in selected Organisation for Economic Co-operation and Development (OECD) countries. The data that are presented include international comparisons of student achievement, educational attainment, literacy and unemployment among young adults. Data on expenditures for education are presented as a measure of national investment in education. It is a selective account, presenting data on important educational markers from international surveys and collections, offered as representative of key aspects of transitioning from education to the workforce in each country. To ensure comparability of data across countries, the data are derived from international surveys, or data collection efforts in which data have been harmonized. The time frame to which the data refer is the middle of the 1990s, between 1994-96. The countries chosen for comparison are OECD members that are representative of the regions of Europe (Northern, Central, Southern, and Eastern), English-speaking countries, and Asia. The coverage of countries varies by source, as the same countries did not participate in each of the surveys and data collections. However, every effort was made to include seven countries that are of particular interest, and they are the focus of the discussion in the text and appear in the figures when data are available: the United States, the United Kingdom, France, Germany, the Netherlands, Sweden, and Italy. An appendix presents: Description of School Systems in Seven Countries.

This paper describes changes in German higher education as a consequence of the reunification of East and West Germany, focusing particularly on personal evaluation of East German faculty and assessment of their scientific expertise. An introduction reviews the major historical events that have shaped the current situation. The paper states that East Germany has 55 institutions of higher education with about 37,000 faculty members, but 90 percent of the nation's research capacity was actually located at the National Academy of Science or in special institutes where there were 15,000 scientists, of whom most are to be integrated into the universities. The process of personal evaluation is explained, noting that methods vary among federal states and among universities, describing the documentation used in evaluations, and commenting on the right to personal inspection of records and the right to make a statement before a final decision is made. The procedures to be used to assess the quality and scholarly excellence of East German university scientists are then discussed, noting the influence of politics and ideology in selecting East German faculty. The paper concludes that though universities continue to function, it is in the midst of an enormous social undertaking to reunify the nation. Five notes are included. (JB)

A task force was convened to identify the nature, extent, and pattern of skill needs and shortages for managerial occupations in the United Kingdom (UK). The task force began by examining the key challenges facing managers in the UK. The following factors were among those considered: economic policies promoting liberalization and deregulation; increasingly fragmented and global product markets; and technological transformations arising from developments in microelectronics. The demand projections for managers and skills shortages (as demonstrated through recruitment problems for higher-level occupations) were reviewed along with the new skills and competencies demanded of managers. Skills related to the following management roles were detailed: managing operations, managing finance, managing people, and managing information. Each key role was subdivided into units of competence that were in turn subdivided into elements of competence. Performance criteria and range indicators were provided for each element of competence. The following key management roles were added to the original four: manage energy, manage quality, and manage projects. Existing management standards were reviewed and modified to reflect the new roles. Management training and development in schools and small and medium enterprises were discussed along with criticisms that have been leveled against competency-based management development. (Contains 112 references.) (MN)

This paper describes the development of Turkish Children and Mothers, a project designed to help 5-year-old preschoolers in the Ruhr Valley of Germany develop linguistic, motor, cognitive, and social abilities. The paper also describes various aspects of the project, including those that relate to maternal involvement, educational facilities, the needs of project participants, and cultural factors that should be considered when serving the ethnic Turkish minority that is adapting to German culture. Focusing on issues that arise from learning in a multicultural context, this paper provides numerous brief anecdotes to illustrate how cultural obstacles can be overcome. (Contains 49 marginal notes citing one or more references.) (MM)

This study examines income effects on German children's educational pathways, considering all three secondary school tracks (gymnasium, realschule, and hauptschule) and using measures of income and other variables that cover the entire childhood. The study controls for father's and mother's educational qualifications, examining the impact of money income rather than needs-adjusted income, and exploring whether income effects differ for native German children and children from households headed by foreigners (guestworkers). Data come from the German Socioeconomic Panel Survey. Study results find that, for this German child outcome, it is late-childhood income that matters, and income effects are linear rather than non-linear. The study also finds that income effects that do exist are small, in absolute terms, and relative to the effects of other determinants. These effects only apply to native German children. The effects are nonexistent for children of guestworker households. Income effects are small relative to the impact of differences in parental educational qualifications or institutional factors related to the federal state of residence. (SM)

The contribution of higher education institutions to regional development is a theme that has attracted growing attention in recent years. Knowledge institutions are increasingly expected not only to conduct education and research, but also to play an active role in the economic, social and cultural development of their regions. The extent to which higher education institutions are able to play this role depends on a number of circumstances: the characteristics of the institutions, the regions in which they are located and the policy frameworks are all significant. At the same time, there are signs of more fundamental conceptual and strategic confusion. The discussions in this domain are frequently characterised by slogans and popular metaphors. This literature review was prepared to support the OECD project entitled 'Supporting the Contribution of Higher Education Institutions to Regional Development', which was conducted by the OECD Programme on Institutional Management in Higher Education (IMHE) in collaboration with the Directorate of Public Governance and Territorial Development. Drawing mainly from a selection of European and North American publications, the report takes an overall view on the development of higher education institutions in the regional context. It focuses on the evolution and discourses of higher education and research, the regional aspects of higher education policies, the various functions and roles that the institutions play, measures taken to link the universities with their regional partners, and the conditions which favour or hamper stronger regional engagement. (A bibliography is included. Contains 9 figures.)

The conclusion of a 1999 Organisation for Economic Cooperation and Development (OECD) report that wage gains for training are higher for workers with lower levels of education was revisited using data for males from the 1997 Australian Survey of Education and Training (SET). The study used methods similar to the OECD report (ordinary least squares and treatment effects model) with the following findings: (1) earnings effects for workers with Skilled and Basic Vocational Qualifications were slightly higher than for completers of Year 12; (2) years of occupational experience strongly affected earnings, though effect size declines with experience; and (3) structured training had a positive effect and unstructured training mixed effects. No evidence of a pattern of earnings effects consistent with the OECD results was found. A second study conducted further analyses of the 1997 SET data within the context of the OECD results. For Australia, the OECD had used 1995 Australian Workplace and Industrial Relations Survey (AWIRS). SET results were compared with AWIRS and other results for Canada, France, Germany, Italy, the Netherlands, and Great Britain. The reanalysis highlighted limitations of the OECD report: focus on employer-sponsored formal training, incumbent employees aged 25-54, and cross-sectional rather than longitudinal data. With multivariate analyses to correct for selection biases, the second study did not support the conclusion of the OECD report. (Study 1 contains 10 references; study 2 contains 24 references.) (SK)

The report details the Irish portion of an experiment in tandem language learning by electronic mail (e-mail). The partners were Trinity College, Dublin (Ireland) and Ruhr University, Bochum (Germany), funded by the European Union within the International E-Mail Tandem Network as part of a two-year project. Tandem language learning is a form of open learning in which two individuals with different native languages work together to learn each other's language, in this case, English and German; success depends on adherence to the principles of reciprocity and learner autonomy. The report describes the network and the principles of tandem language learning by e-mail, the organization of this part of the study, including pedagogical design and considerations, the process of affective and linguistic data collection, and data analysis. The linguistic data analysis focused on bilingual skills, language register, discourse fillers, punctuation, explicit coordination between partners, error correction and generalizations made, thematic content, control and critical detachment, use of metalanguage, and accuracy of corrections. Implications for future work in this area are discussed briefly. Contains 10 references. (MSE)

Starting in 2009, the German state of Saxony distributed sports club membership vouchers among all 33,000 third graders in the state. The policy's objective was to encourage them to develop a long-term habit of exercising. In 2018, we carried out a large register-based survey among several cohorts in Saxony and two neighboring states. Our difference-indifferences estimations show that, even after a decade, awareness of the voucher program was significantly higher in the treatment group. We also find that youth received and redeemed the vouchers. However, we do not find significant short- or long-term effects on sports club membership, physical activity, overweightness, or motor skills.

This report summarizes six case studies on different aspects of the issue of evaluating investing in continuing vocational training (CVT). Part 1 (chapters 1-2) contains "Conceptual Introduction" (Jean-Marie Luttringer), which explores practical problems in considering training expenses as an investment, and "Methodological Introduction" (Alan Barrett), which discusses the merits of using qualitative and quantitative research methods in evaluating CVT investments. Part 2 (chapters 3-8) describes and analyzes continuing training schemes in six European Member States: "The Evaluation of CVT in Enterprises in Styria in Austria" (Stefan Lorenzoni, Dieter Mandl) investigates whether certain goals of CVT were achieved; "The Importance of CVT to Enterprises: A Discussion of the Agricultural Foodstuffs Sector in Denmark" (John Houman Sorenson) seeks to understand why CVT is not being used; "Accounting for Enterprise Investment in CVT in France" (J-M Luttringer, N. Pasco) discusses difficulties associated with evaluating CVT investments; "Innovative Models for Financing CVT in Germany" (Uwe Grunewald, Dick Moraal) studies four innovative models of CVT provision; "Measuring the Impact of CVT in Irish Companies" (Alan Barrett, Philip O'Connell) explores whether training and productivity growth are positively related across a sample of firms. "CVT Activity within the Packaging Sector in Italy" (Francesco Garibaldo) provides insights into how CVT can be used to cope with challenges faced by a sector. Part 3 contains two chapters: "Methodological Discussion, Conclusions, and Further Work" (Alan Barrett), which reviews each report individually before drawing general conclusions regarding methodology and "Policy Discussion, Conclusions, and Further Work" (Jean-Marie Luttringer), which examines seven problems in the assessment of training investment. Appendixes provide background to CVT in the six countries. (YLB)

Research tested the hypothesis that preemployment vocational education is a major contributor to enterprise productivity, because it raises workers' skills that are then applied in more effective work practices. An intercountry comparisons approach involving Britain and Germany and Britain and the Netherlands or France identified medium-sized establishments that produced similar products and compared and contrasted the following: worker productivity; management styles and practices; technologies used; workplace organization; on-the-job training; level and type of vocational qualifications of workers; and curriculum content relating to the qualifications. Findings were as follows: the average productivity of the British enterprises was below that of their counterparts; percentages of British personnel holding intermediate qualifications were much lower; in contrast to British manufacturing, German manufacturing was withdrawing from producing bulk quantities of standard goods; German companies were more inclined to use numerically controlled machinery; and machine breakdowns were rare in Germany, but common in Britain. The different productivity levels were also due to workers' capabilities, which could be explained as a consequence of differences in work preparation. Implications for Australia were to emphasize skilling to increase productivity in customized, high-quality products; to develop technological competence; and to implement rigorous student assessment. (Contains 46 references.) (YLB)

This paper offers a broad look at accreditation and quality assurance in higher education and how these issues are addressed around the world. Section 1 is an overview of accreditation and addresses the aims and objectives of accreditation, standards, accreditation bodies, stages of the accreditation process, the quality of that process, the role of government in the accreditation process, some critical points of view concerning the process, and present accreditation trends. Section 2 looks at accreditation and quality assurance through brief national case studies. The nations represented are France, Germany, United Kingdom, the Netherlands, Sweden, the United States, China, India, Hong Kong, South Africa, Nigeria, Kenya, and Australia. This section closes with a section comparing accreditation and quality assurance in various regions. Section 3 takes a closer and more detailed look at the accreditation process in Romania, particularly in light of the recent political and educational changes in this nation and the fairly recent decision to introduce accreditation of institutions of higher education. This examination covers accreditation principles and objectives, standards for initial and subsequent accreditation, application rules, structure of the accreditation committee and its functions, and provisions for financing accreditation. Appendixes contain institutional evaluation standards and a glossary. (Contains 27 references.) (JB)

Job training is a powerful tool for growth, but only if embedded in a climate of pro-growth policies that it complements. To attract capital to create growth and jobs, a country has to offer favorable supply side conditions. A skilled labor force is one of several important supply side categories, whose growth effects are strongest when the other supply side conditions are favorable as well. Four reasons for paying special attention to human capital are as follows: trying to be as good as the best; higher wages justified by higher productivity; capital-intensive, labor-saving, technology-intensive production processes that require highly skilled labor; and an educational continuum for those willing to work for lower wages and the academically trained high achievers and everyone in between. German vocational training is a mass apprenticeship system run by the private sector within a public-private partnership. Trainees in all sectors of the economy usually begin training right after leaving school. Youth training is the best unemployment insurance and the best weapon against youth unemployment. It works best when it is work-based, performance-oriented, structured learning. The vocational system must not foreclose the option of apprentices to go to college. Germany is currently building a new system that combines academic and practical training and fills the gap between traditional vocational training and the university--the Berufsakademie (professional academy). A variant is already practiced in Singapore. (Eleven tables are appended.) (YLB)

This study examined the long-term effects of youth exchange, specifically the degree to which former participants actually utilized results of the exchange after their return to their home country. The research focused on Germans and Americans who, as teenagers, experienced home stays in the other country between 1951 and 1987. Respondents were queried through a combination of in-depth exploratory interviews with 40 students and comprehensive survey questionnaires based on the findings from the exploratory phase. A total of 1,187 former exchange students received the survey with 661 responding. The study also included a comparison group of 384 individuals, each nominated by a returnee, who had not participated in a high school-level exchange but was of the same gender, similar age, and similar educational background. Analysis indicated that long-term benefits of the exchange experience included growth in self-confidence, acquisition of instrumental skills and extra resources for problem-solving, foreign language proficiency, and generalized coping skills. The findings support the idea that exchange should be viewed in longitudinal, even lifelong terms. It is an experience that contains positive benefits that endure beyond the time abroad. (Contains 41 references.) (Author/JLS)

This report describes environmental training in the Federal Republic of Germany, confined to that provided in vocational schools and industrial establishments. It also covers the further training of environmental trainers in such establishments. Following an introduction (Chapter I), Chapter II outlines the politico-educational background of job-related environmental studies. The next four chapters (Chapters III-VI), examine the integration of environmental protection into four training sectors by means of examples or case studies, referring also to the organizational context in each case. These chapters focus on environmental studies in on-the-job training, environmental studies in the further training of training personnel, environmental training in technical colleges, and environmental training in further training for teachers. Chapter VII maps out perspectives for the improvement of environmental training in the sectors examined, on the basis of the programs described and of the current debate on environmental training. (Sixty endnotes are appended.) (YLB)

A study examined the role of employer training in ameliorating skill shortages and enhancing productivity and competitiveness. The study established that formal training by specialized personnel accounts for only 5-10% of the time newly hired workers are engaged in training activities and that existing labor market research instruments fail to measure much of the informal training and on-the-job training (OJT) received by new employees. U.S. employers were found to devote less time and fewer resources to training entry-level blue-collar, clerical, and service employees than do employers in Germany and Japan. The lower U.S. training rate was attributed to the following: higher employee turnover and higher cost of capital in the United States, lower trainability of U.S. youth, lower rates of technological progress, and lack of information about the quality of the general human capital obtained from OJT. Clear evidence that most U.S. employers and workers underinvest in OJT was found. The study further confirmed that, although high-quality occupational training offered by schools ameliorates the problem of underprovision of skill training, school-based training cannot replace some kinds of employer training and is generally less effective than employer-provided training in providing the same skills. (Contains 126 references.) (MN)

This paper presents a comprehensive analysis of the link between age and proficiency in information-processing skills, based on information drawn from the Survey of Adult Skills (PIAAC). The data reveal significant age-related differences in proficiencies, strongly suggesting that proficiency tends to "naturally" decline with age. Age differences in proficiency are, at first sight, substantial. On average across the OECD countries participating in PIAAC, adults aged 55 to 65 score some 30 points less than adults aged 25 to 34 on the PIAAC literacy scale, which is only slightly smaller than the score point difference between tertiary educated and less-than-upper-secondary educated individuals. However, despite their lower levels of proficiency, older individuals do not seem to suffer in terms of labour market outcomes. In particular, they generally earn higher wages, and much of the available empirical evidence suggests that they are not less productive than younger workers. Older and more experienced individuals seem therefore able to compensate the decline in information processing skills with the development of other skills, generally much more difficult to measure. On the other hand, proficiency in information-processing skills remain a strong determinant of important outcomes at all ages: this makes it important to better understand which factors are the most effective in preventing such age-related decline in proficiency, which does not occur to the same extent in all countries and for all individuals. Two broad interventions seem to be particularly promising in this respect. First, it is important to ensure that there is adequate and effective investment in skills development early in the life-cycle: as skills beget skills, starting off with a higher stock of human capital seems also to ensure smaller rates of proficiency decline. Second, it is equally important that policies are in place that provide incentives to individuals (and firms) to invest in skills across the entire working life. In this respect, changes in retirement policies can not only have the short-term effect of providing some reliefs to public finance, but have the potential to radically reshape incentives to stay active, to practice their skills and to invest more in training, thus helping to maintain high levels of proficiency. One table, Age Differences and Age Effects, is appended.

Three centuries ago only religious schools and apprenticeship controlled by the guilds existed to provide training. Regular academic schools originated in religions that needed a well-educated clergy, and these schools offered the model for the universal basic and secondary schools that exist today in nearly all countries. The European guilds gave structure and substance to learning through the opportunity to study with a master. Apprenticeship has survived the centuries. At its most sophisticated, it has become very complex and structured, as in the German dual system. Three types of training have roots in the regular schools: arts and crafts schools, vocational and technical schools, and comprehensive high schools. Although France offers many other forms of skill training, the typical French system provides for the simultaneous delivery of skills and the regular school curricula. A system that has greatly influenced other countries is the U.S. comprehensive high school. Its main characteristic is to keep all students together until the end of the secondary level. Three systems are descendants of the apprenticeship tradition: the dual system from Austria, Germany, and Switzerland; enterprise-based training centers in Latin American countries; and the Japanese system in which vocational training is offered by large corporations. These systems cannot simply be transplanted from one society to another. They must be adapted to local conditions. In addition, their shortcomings in the country of origin tend to be exaggerated. (Contains 19 references.) (YLB)

Realising the potential of work-based learning schemes as a driver of productivity requires careful design and support. The length of work-based learning schemes should be adapted to the profile of productivity gains. A scheme that is too long for a given skill set might be unattractive for learners and waste public resources, but a scheme that is too short will fail to attract employer interest. Ensuring that the design of work-based learning schemes balances the interests of both employer and trainee is key to successful implementation. Carefully organising what trainees do while in the workplace and integrating learning into productive work can yield higher benefits for firms, while maintaining the quality of learning. Strengthening capacity within firms to effectively manage work-based learning can help achieve this. Enhancing that capacity, for example through training for trainee supervisors can help employers reap more benefits from work-based learning schemes while meeting quality requirements. Two tables are appended.

How important is mastering information and communication technologies (ICT) in modern labour markets? We present the first evidence on this question, drawing on unique data that provide internationally comparable information on ICT skills in 19 countries from the OECD Programme for the International Assessment of Adult Competencies (PIAAC). 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 labour market: returns are at 8% 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. Supplemental tables and figures are appended.