Robust accumulation of human capital while increasing skill deficit in computer programming
Human capital, either measured by the expected lifetime income of individuals or simple indicators such as education attainment or enrolment, accumulated rapidly, in particular in the past two or so decades. As the share of the working-age population falls, wages rise and the relative prices of capital and labour change, leading to substitution from labour to capital. More capital-intensive production, in turn, demands higher skills. According to OECD research using the MyCOS survey data of 800 000 tertiary graduates, the skills with the most acute shortage include computer programming and soft skills (Figure 2). Making up for the programming skills deficit is a prerequisite of widespread development of Internet-based industries and the whole Internet Plus initiative.
Figure 2. Programming skills are falling short
Percentage of graduates in the top ten skill categories with the greatest gap, 2013