The Prevalence and Impact of Skills Gaps on Latin America and the Caribbean

Schwalje, Wes (2011): The Prevalence and Impact of Skills Gaps on Latin America and the Caribbean. Published in: Journal of Globalization, Competitiveness, and Governability , Vol. 5, No. 1 : pp. 16-30.

Abstract

In Latin America and the Caribbean anecdotal evidence from business leaders, the press, and numerous government reports suggest many firms express a serious concern that they face internal employee skills deficiencies that limit performance, a phenomenon that has been labeled as a “skills gap”. This article explores the extent of national skills gaps; the importance of skills gaps relative to other business challenges; the industries facing the most severe skills gaps; and the prevalence of skills gaps by firm size. Based on international example, the article also discusses the ramifications of skills gaps on firms and regional competitiveness.

(Las evidencias anecdóticas de líderes empresariales, de la prensa y de numerosos informes gubernamentales sobre América Latina y el Caribe sugieren que son muchas las empresas que muestran una seria preocupación respecto a las deficiencias en las habilidades de competencia y conocimiento de sus empleados internos y cómo estas deficiencias merman su rendimiento. El fenómeno se ha bautizado como “brecha de habilidades” y en este artículo analizamos su alcance en cada país, así como la importancia de la brecha de habilidades comparada con otros retos empresariales, los sectores industriales que se enfrentan a brechas de habilidades más graves y la prevalencia de la brecha de habilidades según el tamaño de la empresa. A partir de ejemplos internacionales, el artículo también analiza el modo en que la brecha de habilidades se extiende por la empresa y afecta a su competitividad regional.)

(As provas especulativas retiradas dos relatórios de líderes empresariais, da Imprensa e de vários organismos públicos da América Latina e das Caraíbas sugerem que muitas empresas revelam uma séria preocupação, porquanto enfrentam deficiências ao nível das competências dos colaboradores internos que limitam o seu desempenho, um fenómeno que foi denominado “lacunas nas competências” (skills gap). Este artigo aborda a dimensão das lacunas nas competências a nível nacional, a importância das lacunas nas competências relativamente a outros desafios empresariais, os sectores que enfrentam as maiores lacunas nas competências e a prevalência das lacunas nas competências por dimensão das empresas. Com base em exemplos internacionais, o presente artigo também abrange as ramificações das lacunas nas competências no que diz respeito à competitividade das empresas e das regiões.)

• Item Type: MPRA Paper
• Language: English
• Keywords: Competitiveness; skills gaps; human capital development; knowledge-based economy; economic development; competitividad; competitividade; brecha de habilidades; lacunas nas competências; desarrollo de capital humano; desenvolvimento do capital humano; economía basada en el conocimiento
• Subjects: J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration

References

Ashton, D., F. Green, et al. (1999). Education and Training for Development in East Asia: The Political Economy of Skill Formation in Newly Industrialised Economies London, Routledge.

Autor, D. H., L. F. Katz, et al. (1998). «Computing Inequality: Have Computers Changed the Labor Market?» The Quarterly Journal of Economics Vol. 113, No. 4: pp. 1169-1213.

Bank, A. D. (2004). Improving Technical Education and Vocational Training Strategies for Asia. R. a. S. D. Department.Manila, Asian Development Bank.

Bank, W. (2010). World Bank Enterprise Surveys.

Bank, W. (2010). World Development Indicators. World Bank.

Bank, W. (2011). Global Economic Prospects 2011. Washington, World Bank.

Bonser, G., W. W. Daniel, et al. (2006). Multisector Skills Study: Electronics Industry. D. o. T. a. Industry. London, Department of Trade and Industry.

Booth, A. L. and D. J. Snower (1996). Acquiring skills: market failures, their symptoms and policy responses Cambridge,Cambridge University Press.

Brown, P., A. Green, et al. (2003). High skills: globalization, competitiveness, and skill formation Oxford, Oxford University Press.

Development, O. f. E. C. a. (1998). Technology, productivity and job creation: best policy practices. Paris, Organization for Economic Cooperation and Development. 3. Development, U. N. C. o. T. a. (2010). UNCTAD Statistical Database, United National Committee on Trade and Development.

Finegold, D. (1999). «Creating Self-Sustaining, High-Skill Ecosystems.» Oxford Review of Economic Policy 15(1): 60- 81.

Forth, J. and G. Mason (2004). Information and Communication Technology (ICT) Skill Gaps and Company-Level Performance: Evidence from the ICT Professionals Survey 2000-01. NIESR Discussion Paper London, National Institute of Economic and Social Research.

Group, B. C. (2009). The 2009 BCG Mulitilatinas. Boston, Boston Consulting Group.

Harris, R., Q. Li, et al. (2006). The Productivity Impact of Skills in English Manufacturing, 2001: Evidence from Plant- Level Matched Data, Department of Economics, University of Glasgow.

Ibarrarán, P., A. Maffioli, et al. (2009). SME Policy and Firms’ Productivity in Latin America. Discussion Paper No. 4486. I. f. t. S. o. Labor. Bonn, Institute for the Study of Labor.

Lall, S. (1999). Competing With Labor: Skills and Competitiveness in Developing Countries. D. P. Department. Geneva, International Labour Organization.

Lall, S. (2000). «Skills, Competitiveness and Policy in Developing Countries.» QEH Working Paper Series Working Paper Number 46.

Mayer, J. (2000). Globalization, Technology Transfer, and Skill Accumulation in Low Income Countries. U. N. C. o. T. a. Development. Geneva, United Nations Conference on Trade and Development.

Ogliastri, E. (2007). Colombia: The Human Relations Side of Enterprise. Culture and Leadership Across the Word. J. S. Chhokar, F. C. Brodbeck and R. J. House. New Jersey, Erlbaun Associates.

Olsen, J. P. (2009). «Change and continuity an institutional approach to institutions of democratic government.» European Political Science Review 1(1): 3–32.

Organization, I. L. (1998). Impact of flexible labour market arrangements in the machinery electrical and electronic industries. Tripartite Meeting on the Impact of Flexible labour market Arrangements in the Machinery, Electrical and Electronic Industries, Geneva, International Labor Organization.

Pages-Serra, C., Ed. (2010). The Age of Productivity: Transforming Economies from the Bottom Up Washington, DC, Inter-American Development Bank.

Porter, M., J. Sachs, et al. (2002). The Global Competitiveness Report 2001–2002 Executive Summary: Competitiveness and Stages of Economic Development. New York, World Economic Forum and Oxford University Press.

Slaughter, M., J. (2002). Does Inward Foreign Direct Investment Contribute to Skill Upgrading in Developing Countries?, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

Stiglitz, J. E. (1996). «Some Lessons From the East Asian Miracle « The World Bank Research Observer 11(2): 151-177. Unit, E. I. (2009). Skills to compete Post-secondary education and business sustainability in Latin America. London, Economist Intelligence Unit.

Wade, R. (1992). Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. Princeton, Princeton University Press. Wilson, R. and T. Hogarth (2003). Tackling the Low Skills Equilibrium: A Review of Issues and Some New Evidence. I. a. S. UK Department for Business, UK Department for Business, Innovation and Skills