INERTIA AND INACTION
The remaining challenge then will be our own behavioural biases.
We are often aware of what is beneficial for us – we know we should save for rainy days, exercise more regularly and continuously enhance our skills.
Yet, due to behavioural biases like the status quo bias, we often struggle to make meaningful progress towards our goal. Consequently, we may lack the motivation to do meaningful action such as upskilling until it is too late, where we face challenges in the labour force.
As a major policy initiative, the SkillsFuture Level-Up Programme has the ability to mitigate these behavioural biases as skills upgrading is made more salient.
With the attractive financial benefits, the initiative can help overcome the inertia associated with inaction. Additionally, households might feel that they are missing out on the benefits and subsidies should they choose not to pursue another full-time course.
Coupled with the influence of peer effects, this could eventually create a movement of continuous learning. Let us keep the conversation going.
Chua Yeow Hwee is an Assistant Professor in Economics and Deputy Director of the Economic Growth Centre at the Nanyang Technological University (NTU). The opinions expressed are those of the writer and do not represent the views and opinions of the institutions he is in.