Rapid technological development makes skills depreciate faster than in the past while new technologies generate gaps in workers' skills and call for the acquisition of appropriate skills and lifelong learning. Proper skill mixes for future jobs include strong cognitive skills, basic information and communication technology, and analytical skills, as well as a range of non-cognitive skills such as creativity, problem-solving, critical thinking, and communication. Retraining and reskilling workers are also crucial, particularly as life expectancy increases. All these changes lead to a major rethinking of education and skill training throughout a person's life. This paper reviews the recent studies on human capital and skill formation in the era of rapid technological progress. Findings from these studies, particularly in labour economics, can shed light on new directions for lifelong education policies, for example (1) parental investment in pre-school learning is reflected in highly positive adult outcomes; (2) as far as education inputs are concerned, teacher quality is far more important than additional school resources; and (3) government workforce training programs are largely ineffective as compared to private training, which contribute significantly to worker productivity.
ASJC Scopus subject areas
- Geography, Planning and Development
- Economics and Econometrics