Publications

Title Changes in the Capabilities of Koreans: A Decade-Long International Comparative Study Hit 586
Publication 2025-02-12

Institute for Future Strategy Issue Brief, February 2025 Vol. 26
“Changes in the Competencies of Koreans: An International Comparison over the Past Decade”

This issue brief provides an in-depth analysis of changes in the competencies of Koreans and structural problems in the labour market, based on the OECD Programme for the International Assessment of Adult Competencies (PIAAC). By linking the first and second cycles of PIAAC, conducted roughly ten years apart, the brief compares competency changes by age across different countries.

The results reveal an unusual pattern in Korea: compared to other major countries, competency decline begins at an earlier age. Moreover, despite Korea recording the largest increase in years of education and training among major countries over the past decade, competencies actually decreased—raising concerns about a potential decline in the quality of higher education.

The brief also finds that in the Korean labour market, wage returns to competency are relatively low, with tenure and employment in large corporations serving as the main determinants of wages. In such a structure, workers have little incentive to improve their competencies. Therefore, addressing early competency deterioration will require not only qualitative improvements in the education system but also reforms in the wage structure of the labour market.

Keywords
OECD PIAAC, competency changes, labour market, quality of education, wage structure