Communication and language skills pay off, but not everybody needs them

The importance of communication skills is increasing on the labour market and a further strengthening of this trend is expected due to Industry 4.0. This development will have significant consequences for individuals’ employability, requirements on educational outcomes and gender equality. This article employs data from a representative survey of Czech employees (N = 1,500) replenished with information on requirements on their communication skills (Effective communication, Czech language and English language) in order to explore (a) the distribution of communication skills requirements on the labour market, (b) personal and job characteristics related to work positions requiring highly developed communication skills, and (c) wage returns to these skills. The results show that one standard deviation increase in job requirements on communication skills is connected with 5.8% wage premium. However, not everybody needs well-developed communication skills. Only a quarter of employees needs highly developed effective communication, Czech and English languages, while there is also a quarter of employees that needs only a very basic level of communication skills. The results also revealed that females perform more communication-intensive occupations than males do. Cognitive skills and the need to excel represent other significant factors correlated with higher job requirements on communication skills.

Occupation-specific wage returns: shedding light on differentials between employees with a VET degree either with or without an Abitur

This study seeks to reveal the heterogeneity in occupation-specific wage returns among graduates of the German vocational education and training (VET) system. We distinguish between VET graduates with and without a higher education entrance certificate (i.e. an Abitur). To implement our hierarchical multi-level analyses, we exploit the latest wave of the BIBB/BAuA Employment Survey from 2018. By estimating occupation-specific wage returns, we reveal gaps between VET graduates with and without an Abitur. Additionally, we analyse several occupational characteristics to show how they contribute to the gaps in wage returns between our study groups. Our results show that employees combining an Abitur with a VET degree achieve higher wage returns than those VET graduates without an Abitur across all occupations. Employees holding a VET degree without an Abitur display greater inequality of occupation-specific wage returns. Among the occupational characteristics, task composition is the main driver of the differences in wage returns.