Digital Literacy: a basic skill to survive in the digital age

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Digital Literacy: a basic skill to survive in the digital age WAPES World Congress Marrakech 2018 Abla SAFIR

Pervasive need for digital literacy

Accelerated need for digital literacy 100 80 improved water mobile phone 60 40 20 improved sanitation secondary school enrollment internet mobile broadband 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Note: Mobile phone and mobile broadband subscriptions, internet users, improved water and sanitation are per 100 individuals. Net secondary school enrollment is the percent of the relevant age group. Sources: World Bank, WDR on Internet and Development Team based on World Development Indicators and ITU data.

Share of employment (%) Few jobs in ICT in developing countries Contribution of ICT to employment (2012-2013) 40 20 0 ICT Sector ICT Occupations Source: WDR 2016, based on STEP household surveys. OECD definitions for ICT sector and occupations.

But increased use of ICT across jobs

Higher use of ICT in employment as country incomes grow

Lack of ICT is a barrier to employment

And access is unequal within developing countries Africa: Percentage of individuals who report ever using the internet (%) (2012) 23 18 20 12 10 11 8 4 Men Women Urban Rural Age 15-24 Age 45+ Upper 60% * Bottom 40%* Source: WDR 2016, based on Research ICT Africa RIA survey.

But digitalization has an impact that is much broader than digital literacy: broader change in skills in demand

Digitalization is not only about digital skills: technological change drives a broader change in skills in demand Technology complements some Workers (skillbiased) But technology can substitute others (laborsaving) What matters is whether the task is ROUTINE (and can thus be automated) or NON-ROUTINE

Share in total employment (%) Share in total employment (%) Work is becoming more intensive in nonroutine skills and less so in routine ones Employment Composition (simple cross country average by type of occupation) (2000-2012) 50 OECD countries 50 Developing countries 45 40 35 45 40 35 30 25 20 30 25 20 200020012002200320042005200620072008200920102011 Non-routine cognitive or inter-personal Routine cognitive or manual Non-routine manual Non-routine cognitive or inter-personal Routine cognitive or manual Non-routine manual Source: WDR 2016 team, based on ILO KILM data. Skills classification follows Autor (2014).

Routine skills can be substituted by technologies Share of employment that can be computerized (%) HRV CYP LVA MLT LTU CHN OECD ALB THA ROU ECU CRI MYS MUS ZAF SRB PAN GTM ARG SLV BGR SYC ETH UKR PSE GEO KSV Estimated share of employment that is susceptible to automation (%) 60 50 40 30 20 10 0 Adjusted (technological feasability + adoption time lags) Source: WDR 2016 team, based on household surveys, the Income Distribution Database (I2D2),ILO Laborsta database, China s Population Census, Frey and Osborne 2013, and Comin and Hobjin (2010).

Policies

Policies have to adapt to new realities Technology changes the skills required to succeed in a modern economy: digital literacy but also nonroutine skills. Technology also accelerates the pace of change, making skills obsolete more quickly and opening up new opportunities. Technology also allows new opportunities to learn and deliver services

Investing in digital literacy Among workers: Coding bootcamps: Colombia, Kenya Training women for online freelance work: Kosovo Promoting adoption of ICT: Georgia Among firms in developing countries: promoting incubators and start-ups (to increase incentives to invest in digital literacy) Kenya

And investing in other skills that are complementary to technology Equip workers with the skills that are complementary to technology (digital skills; generic skills): Refocus training programs to generic skills and to technical skills: Including socioemotional skills: Togo; Turkey An important role for PES there because these are skills in which firms may underinvest (market failures) Challenge is however to identify new technical skills in demand Improve incentives for life-long learning: For individuals: Training accounts For industries: Work with sector-wide trade and employer unions to cofinance training and retraining in sector-specific training For firms: Subsidies for firms to provide firm-specific training

Using technology To use information better - Connecting people to jobs: Information on jobs: (India: Babajobs; Peru: SMS-based intermediation) Information on workers: improve assessment and profiling of workers (Croatia: statistical profiling of jobseekers; Turkey: profiling of jobseekers; skills assessment) To nudge workers to actively look for work- Phone and email allows to send reminders and help take action: Turkey: videos and SMS to support the job search USA: Emails timed to increase take-up of training To train at a low cost and at a massive scale Kenya: deliver financial literacy and business development services through digital means Use IVR to reach out to worker with low digital literacy

www.worldbank.org