LIBRARY RESOURCE

Automation is not a new phenomenon, and fears about its transformation of the workplace and effects on employment date back centuries, even before the Industrial Revolution in the 18th and 19th centuries. In the 1960s, US President Lyndon Johnson empaneled a “National Commission on Technology, Automation, and Economic Progress.” Among its conclusions was “the basic fact that technology destroys jobs, but not work.”* Fast forward and rapid recent advances in automation technologies, including artificial intelligence, autonomous systems, and robotics are now raising the fears anew—and with new urgency. In our January 2017 report on automation, A future that works: Automation, employment, and productivity, we analyzed the automation potential of the global economy, the timelines over which the phenomenon could play out, and the powerful productivity boost that automation adoption could deliver.

The Employment and Entrepreneurship sub-program under Prospects Liberia provides young entrepreneurs, aged 18 to 35 years, business skills training and the opportunity to apply for a microgrant (USD 250 to USD 750) to start up or expand a business through a Youth Investment Fund. Data captured throughout the program indicates that significantly more women than men seek and receive the small business grants. Given this information, the Prospects team sought to understand what motivates young women to pursue entrepreneurship.

A growing body of evidence recognizes the importance of soft skills in predicting long-term life outcomes, including labor market outcomes as well as social and health behaviors (Heckman et al, 2006; Kautz et al., 2014). Soft skills refer to a broad set of skills, behaviors, and personal qualities that enable people to effectively navigate their environment, relate well with others, perform well, and achieve their goals. These skills are applicable across sectors and complement the acquisition of other skills such as technical and academic skills. Although the returns to cognitive and technical skills have long been recognized, recent literature suggests that soft skills rival cognitive skills in their ability to predict positive outcomes. Moreover, evidence suggests that soft skills are more malleable than cognitive skills among adolescents and youth adults (Heckman et al., 2006; Kautz et al., 2014).