This chapter lays the theoretical foundation of the volume by addressing the contested role of schools in producing employable skills amid rapidly shifting demands. It begins by defining competencies and skills. Then, based on a review of literature from different disciplines, it highlights that while knowledge and skills are embodied in individuals, acquisition occurs through collective processes and their value is socially constructed. Abilities at work are thus shaped by the nexus of learners’ subjectivity, social relations, workplace cultures, and the global economic and structural conditions. To analyze such complexity, the author proposes Realist-Constructivism as the guiding framework. Pure constructivism captures diverse cases but lacks synthesis, while Realist-Constructivism enables abductive reasoning that bridges macro-level deduction and micro-level interaction. Combining the benefits of inductive and deductive approaches, Realist-Constructivism investigates the sociocultural, structural-regulatory, and econo-productive mechanisms that influence how competencies are formed and valued. This chapter, therefore, establishes a conceptual and methodological lens for exploring skills gaps in the Global South within broader contexts of change.