Skills Gap by Age Across U.S. States

• In Event: Examining U.S. Inequalities Using Program for the International Assessment of Adult Competencies Data

Abstract

Objectives and Theoretical Background
As older workers retire over the coming decades, today’s younger workers will become the majority of the American workforce and society. While younger adults generally have higher literacy skills than older adults, with skills peaking in the 25-34 age group, the gap between younger and older adults in the United States is one of the smallest among PIAAC-participating countries (OECD, 2013).

This research aims to provide information on which U.S. states have the largest and smallest skills gaps among the age groups, and how the size of this gap relates to educational and economic factors within the state. These findings will inform which areas of the country are best or least prepared for their younger workers to mature into the productive workforce.

Data and Methods
This paper uses data from the PIAAC Skills Map, which provides state- and county-level data on the literacy and numeracy proficiency of adults ages 16–74 by age groups in U.S. states and counties. Estimates in the Skills Map are based on small area estimation methodology using data from three rounds of PIAAC data collection (2012, 2014, 2017) and 2013-2017 American Community Survey (ACS) data.

Analysis focuses on the literacy performance by age group at the state-level, examining the skills gap between younger adults ages 25-34, who have likely entered the workforce, and older adults ages 65-74, who may be leaving or have left the workforce. This paper will focus on the states with the largest and smallest skills gaps by age and provide context by examining characteristics of these states, such as proportions of employed adults, households below poverty level, and population (ages 25+) with more than a high school education. Correlation between skills gaps and these variables will also be presented.

Results
The age skills gaps vary widely across states. Nevada is the only state where the oldest adults have higher literacy skills compared to 25-34-year-olds. South Dakota, Hawaii, Delaware, and New Hampshire have the smallest age gaps in favor of young adults. Meanwhile, the District of Columbia., Louisiana, Arkansas, Alabama, and Massachusetts have among the largest age gaps favoring younger adults.

Generally, the states with higher population of low-skilled adults overall had larger skill gaps. While there is variation, the states with the smallest gaps between young and older adults have more of their population with more than a high school education and employed and less of their population below the poverty level compared to those with the largest skills gaps.

Significance
While the literature supports this at individual level, current analysis finds correlation between high-skilled workforce and educational achievement and economic prosperity at the state level. Higher-skilled new generation entering the job market often suggests more economic growth and higher productivity. The skill gaps are suggestive of not only the current but also future trends in prosperity. They flag in which states the young adults are best prepared for the dynamic workforce of the 21st century and where young adults may benefit from targeted upskilling efforts.

Author

• Emily Pawlowski, American Institutes for Research
  Presenting Author