Skills for a Modern Ukraine

Ukraine’s economic progress has been uneven since the start of the transition in 1991. Productivity is low partly because of the slow pace of market-oriented reforms and the misallocation of the labor force. One the key factors limiting productivity gains is the inadequacy of workforce skills, the focus of this report. This study aims to provide policy makers in Ukraine with new evidence to influence the design and implementation of public policies on postsecondary education, labor market information and intermediation, and labor policies. To do so, it investigates the nature of skills valued in Ukraine’s labor market, identifies labor shortages, assesses constraints to firms’ operations, discusses how institutions affect investment in skills, and suggests policy options. The report provides granular evidence from original data from household and firm skills surveys, a data set of online job vacancies, and an assessment of workforce development institutions.