European Expert Network on Economics of Education (EENEE) policy Brief 2/2013 on how workers’ skills are crucial for success on modern labor markets. Funded by the European Commission, DG Education and Culture.
Evidence from the new Programme for the International Assessment of Adult Competencies (PIAAC) suggests that skills are highly valued in modern economies. On average, going up one (out of five) PIAAC proficiency levels is associated with an 18 percent wage increase. But the labor‐market returns to skills differ widely across European countries, from 12 to 24 percent.