Problem Solving in Technology-Rich Environments, Adult Education and Training, and Income: An International Comparison Using PIAAC Data

The high dependence on technology for economic activities in developed countries stresses the importance of lifelong learning in order to equip adult workers with the skills required to perform work related tasks, and also increase labor force participation. We use data from the 2012/2014 Program for the International Assessment of Adult Competencies (PIAAC) to examine relationships among problem solving skills in technology-rich environments (PSTRE), participation in adult education and training (AET), and income in Australia, Finland, Japan (high PSTRE scoring countries), Chile, Greece (low PSTRE scoring countries), Ireland, Estonia, and the United States (similarly scoring countries). Although PIAAC measured literacy, numeracy, and PSTRE skills, our research focus is on PSTRE because of its emphasis on problem-solving skills and critical thinking. These skills are undoubtedly important in any global economy currently experiencing rapid technological transformation. In four of five age groups, Japan had the highest PSTRE scores. With the exception of Greece, PIAAC respondents in the oldest age group had lower PSTRE scores than younger age groups. Men had higher PSTRE scores than women in all countries except Australia and Greece. Overall, those with higher PSTRE scores were more likely to participate in AET but there were variations by age, income, and education categories. Greater PSTRE scores were associated with higher hourly wages in the U.S. Australia and Estonia whereas no significant association was observed in other countries. With limited availability of data, females benefited financially from higher PSTRE scores more than males in the U.S., Finland, Ireland and Japan.