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The IUP Journal of Soft Skills
The Effects of Generic Competences on Employment Outcomes
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In many OECD countries, youth are experiencing difficulties in obtaining employment after graduation. This paper examines through a longitudinal study whether the development of generic competences, in a work experience scheme, improved their employment status, person-job fit, and job satisfaction. The survey was conducted among 149 trainees, as well as their supervisors, at three points in time. The results indicated that competence mastery and person-job fit differed between participants who left the program early and who completed it, and between those who obtained employment at their training company and those obtained outside their training company. The paper also discusses theoretical and practical implications of these findings.

 
 

As in many OECD (Organization for Economic Cooperation and Development) countries, the Netherlands is also facing difficulties in successfully integrating youth into the labor market. The prevention of unemployment and the matching of qualifications and skills of youth with suitable jobs have proven to be a challenging task. To illustrate, since the economic crisis in 2008, the unemployment rate had increased dramatically from 8 to 16% in 2014 (CBS, 2014). Furthermore, the average job search period until one finds his/her first job had nearly doubled across all educational levels from 2006 to 2011 (ROA, 2013).

There are several possible explanations for these work-entry related problems. First, the economic crisis had an impact on various sectors of the labor market, causing employers to be more reluctant towards hiring young staff. Due to the abundance of unemployed individuals, employers can afford to inflate their selection criteria, resulting in a highly competitive environment for youth, who typically cannot compete in terms of their work experience. Second, employers often hire youth based on the available “signals” such as their diplomas, which are used as proxy for their knowledge and skills, instead of fully evaluating their human capital (which is a costly endeavor). This is problematic given, due to the segmented nature of the labor market, some sectors have an oversupply of workers, whereas others experience a shortage. As such, the chosen field of study of youth can greatly impact their job prospects upon graduation.

 
 

Soft Skills Journal, Generic Competences, OECD countries, OECD (Organization for Economic Cooperation and Development), Work Experience Scheme or WES, Theory and Hypotheses, Employment Outcomes.