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What type of recovery and what type of skills?

Daniel M ü nich, CERGE-EI daniel.munich@ cerge-ei.cz. What type of recovery and what type of skills?. Thematic conference, 25-26 March 2009, Prague, Czech Republic Implementing flexicurity in times of crisis. Session 2: LLL, matching skills and labour market needs on the path to recovery.

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What type of recovery and what type of skills?

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  1. Daniel Münich, CERGE-EI daniel.munich@cerge-ei.cz What type of recovery and what type of skills? Thematic conference, 25-26 March 2009, Prague, Czech Republic Implementing flexicurity in times of crisis. Session 2: LLL, matching skills and labour market needs on the path to recovery.

  2. Path to recovery • When will recovery start? • long-term unemployment, fresh graduates, resources, etc. • What will be the recovery like? • possibility of more fundamental changes in comparative economic advantages, • resulting structural changes in economies •  need for all types of mobility.

  3. What are labour market needs? • Skills forecasting/anticipation is difficult task even during stable times • data limits, schooling systems rigidity, structural changes)  more general skills are less risky investment. • Carefully evaluate local demand for narrowly skilled workers • shorter term motivation of employers, • not necessarily internalizing long term benefits of training and personal and social costs of matching failure.

  4. Matching skills • General or specific skills? • Multiplier (snowball) effect of general skills / education - general skills make LLL cheaper and effective. • Education at upper-secondary school lasts 2-4 years, work career +40 years.

  5. Schooling and training policies • How to bring people back to school/training  incentives. • Intervene in case of market failures  identify types of market failures first. • Provision of general skills (economic constraint of low earners, uncertain investment). • Resources for LLL • Achieve higher utilization of facilities for formal education vis-à-vis demographic downturn. • Reform of tertiary education systems – more flexible (access and schedules) arrangements (employed parents). • Training is an important tool of ALMPs • screening tool • need for reliable impact evaluations • flexible capacity and use of private agencies in a competitive set-up

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