Improving skills to harness the benefits of a more open economy in Brazil
As Brazil is significantly less integrated into international trade than other emerging
market economies, opening up to trade has significant potential to create jobs that
are more productive and better paid. At the same time, this will be associated with
structural changes and adjustment costs. Some workers are required to move to more
productive firms, change occupations, sectors or even location. In particular, low-skilled
workers need to upgrade their skills to move into newly created medium-skilled jobs
in expanding firms and sectors. Workers who stay in their jobs will face similar challenges
as firms upgrade production processes towards more advanced technologies. Well-designed
and well-funded training and adult education policies, combined with effective social
protection and employment services, can go a long way to mitigate adjustment costs
for low-skilled, unemployed and informal workers. Evidence suggests that training
policies can make a real difference, provided that its content is aligned with skill
demands in local labour markets. Moreover, the education system plays a fundamental
role for preparing current and future generations for the challenges that international
integration and rising digitalisation will bring about.
Published on March 16, 2021
In series:OECD Economics Department Working Papersview more titles