Skipping
Also called "Decimation", means that a certain amount of photosites is not read out ->skipped (horizontally, vertically or in both axis). This reduces resolution of the resulting image but introduces subsampling artifacts. This is an on-sensor-feature.
Binning
Pixel Binning refers to the method of combining (averaging or summing) charges of blocks of neighbouring same-color-photosites. This is an on-sensor-feature.
Using both skipping and binning at the same time reduces subsampling artifacts but does not eliminate them completely.
(http://wiki.elphel.com/index.php?title=SkippingBinning)