Wages and competencies. An Econometric Investigation in the Italian manufacturing industry

From a macroeconomic perspective, problems of unemployment should be faced improving the occupability of workers on the labour market and within the company.
Advanced economies require more and more skilled workers, but it is not clear what kind of competencies are the most valuable. It is worth understanding which are the most important competencies for the market, so that it is possible to guide educational efforts towards the right direction. According to Borghans and ter Weel (2004), educational programs directed to teach how to use a computer are hardly effective.
Basic competencies (such as writing and math) still remain the most valuable competencies for workers (Ibidem). But following other authors IT competencies are highly valued by the market (Dickerson & Green 2004; Doms, Dunne & Troske 1997; Dunne & Schmitz 1995; Haskel 1999; Krueger 1993; Liu, Tsou & Hammit 2004; and Lucchetti, Staffolani & Sterlacchini 2003). Also soft competencies are required in today’s work environment (Dickerson & Green 2004). Probably basic competencies should be increasingly juxtaposed with IT and soft competencies in educational and training programs. Leoni (2011) highlights that it is not critical only the content of education, but also teaching and pedagogical tools adopted. The transition from knowledge transfer to competency formation is desirable (Ibidem). In brief, effective education can improve workers’ occupability and reduce unemployment. Greater occupability can be enhanced also within the company through job rotation.
Internal flexibility allows moving employees within the company without firing them.
Moreover, even in case of dismissal, the employee will have developed wider competencies expendable in the labour market.