Executive summary Integration of literature review, qualitative analysis and quantitative analysis

Executive summary Integration of literature review, qualitative analysis and quantitative analysis 1 Introduction The World Bank, through its Multilateral Donor Trust Fund for Trade and Development, Fundación Chile and Chile's National Council of Innovation for Competitiveness have developed the study " Can Skills and Competencies for Trade be Taught? ". It assesses the certification of labor competencies and the influence that these could have on firm competitiveness and productivity. Openness to trade and success in export markets are correlated with several positive externalities. The competitive pressure associated especially with high-value added export markets is thought to reward productive and efficient firms, spur technological learning, and possibly improve organizational and management practices. Furthermore, there is evidence that over time these benefits do not remain confined only to exporting firms, but are transmitted throughout the economy. To be able to compete in high-value added export sectors, firms tend to seek more and better human capital. The ability to create an adequate supply of skilled workers through education and training becomes essential to achieving and sustaining success. Since 1999, Chile has experimented with programs to define labor competencies and provide competency-based training and certification to workers in, inter alia, its most dynamic and export-oriented sectors. The process of creating competency-based standards for various industries in Chile, and the training and certification of workers in export oriented firms, has led to the development of the National System of Labor Competencies Certification and has had an outreach of 30,000 certified workers in 15 sectors of the economy. Fundación Chile maintains a database with information of the certified workers, the companies in which they work and the processes and standards developed. This information, supplemented by various other data sources, has enabled the analysis of a number of facets of the certification experience. The study " Can Skills and Competencies for Trade be Taught? " aims to understand and gauge several factors related to the impact on and the benefits for exporting firms participating in using competency-based certification, from the perspective of Chilean firms and workers. The study comprises three core elements: a literature review on the certification of labor competencies in the tradables sector, a qualitative analysis of the perceived benefits for firms and individuals of participating in the certification process, and a quantitative analysis centered on the productivity and economic benefits for firms of being involved in the process. The literature review sets a conceptual …