Pacific Alliance and Observer Countries: An Agenda for cooperation Vocational education and training: the role of skills and quality of education Sebastian NIeto Parra OECD Development Centre

1. Pacific Alliance and Observer Countries:
An Agenda for cooperation
Vocational education and training:
the role of skills and quality of education
Sebastian Nieto Parra
OECD Development Centre
OECD headquarters
Paris, 28 January 2019

2. Boosting inclusive growth at the Pacific Alliance:
productivity and consolidation of the middle-class
Labour productivity relative to OECD (%) Vulnerable middle-class (% of population)
0
10
20
30
40
50
60
70
80
90
100
Peru Colombia LAC Mexico Chile OECD
2007 2017
0
5
10
15
20
25
30
35
40
45
Chile LAC Colombia Peru Mexico
2007 2016
Note: Share of people living in vulnerability, USD 5.50-13.00 a day (2011 PPP) (%),
Source: World Bank
Note: Labour productivity is calculated in terms of GDP per person employed
(constant 2011 PPP USD)
Source: Based on The Conference Board

3. A crucial starting point for vocational education
and training: quality of secondary education
Mean PISA score in science performance (PISA points)
Source: OECD (2016), Table B1.2 - Results (tables): Science performance among 15-year-olds, in PISA 2015 Results (Volume I): Excellence and Equity in Education, OECD
Publishing, Paris, https://doi.org/10.1787/9789264266490-table120-en.
300
350
400
450
500
550
Peru LAC Colombia Mexico Chile OECD
2009 2015

4. Assessing skills-mismatch at the Pacific Alliance:
empirical evidence to adopt the right policies
0 50 100 150 200 250 300 350 400
México
Colombia
Uruguay
Nicaragua
Perú
Guatemala
Chile
Paraguay
Argentina
Honduras
Costa Rica
Panamá
Venezuela
Brasil
Ecuador
República Dominicana
El Salvador
Bolivia
1800 formal firms surveyed in Latin America; 1000 in the Pacific Alliance
Survey OECD Development Centre/Manpower Group
(number of surveyed firms by country)
Nota: Recoge las respuestas de 1794 encuestas validadas a empresas latinoamericanas
Fuente: Firms surveyed OECD Development Centre/Manpower Group

5. 72% of LAC firms have difficulties for filling their
vacancies
Have you had difficulties filling vacancies despite having candidates for the position?
Note: It shows the answers of 1794 formal firms in LAC
Source: Firms’ survey by OECD Development Centre/Manpower Group
28%
72%
No Yes

6. 77% of formal firms in the Pacific Alliance have
difficulties filling their vacancies
(83% CHI, COL 65% , 82% MEX, 78% PER)
Have you had difficulties filling vacancies despite having candidates for the position?
Note: Based on 944 surveys to formal firms in Chile, Colombia, Mexico and Peru
Source: Firms’ survey by OECD Development Centre/Manpower Group
18%
82%
Mexico
35%
65%
Colombia
17%
83%
Chile
22%
78%
Peru
No Yes

7. Difficulties to find adequate skills: particularly
evident at services and manufacture sectors
Note: It shows the answers of 1794 formal firms in LAC
Source: Firms’ survey by OECD Development Centre/Manpower Group
¿Have you had difficulties filling vacancies despite having candidates for the position?
0
10
20
30
40
50
60
70
80
90
100
Agriculture and
trade
Retail Communications
and transport
Construction Manufacturing Mining and
extractive
Services
%
Yes No

8. Enrolment in vocational education is low in
Pacific Alliance countries
Source: OECD/CAF/ECLAC (2016), Latin American Economic Outlook 2017, Youth, Skills and Entrepreneurship.
Students in secondary education enrolled in vocational programmes, LAC, circa 2013
0
5
10
15
20
25
30
35
Peru
Nicaragua
Brazil
Dominican
Rep.
Venezuela
Colombia
Argentina
Panama
Paraguay
Mexico
ElSalvador
Chile
CostaRica
Uruguay
OECD(33)
Guatemala
Honduras
Ecuador

9. Training programs for youth work when combining
class-work, intermediation and demand
Components and outcomes in youth training programmes in Latin America
Source: OECD/CAF/ECLAC (2016), Latin American Economic Outlook 2017, Youth, Skills and Entrepreneurship.

10. • Assessment is fundamental: skills-mismatch and impact evaluation
(training programmes)
• Policies to be implemented:
- Soft policies teachers’ training, effective intermediation/dialogue
- Infrastructures and materials (new technologies): sub-national dimension
• Innovating international cooperation:
- Strong coordination with national development plans
- Innovative modalities of cooperation (knowledge sharing, capacity building,
technological transfers)
- Other forms of governance (triangular and multilateral cooperation)
Main messages (based on Latin American
Economic Outlooks - LEOs)

11. Thank you!
Visit www.latameconomy.org
Twitter : @snietoparra
Vocational education and training:
the role of skills and quality of education