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Rethinking Under-Skilling in Europe☆

In: Skill Mismatch in Labor Markets

Author

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  • Ilias Livanos
  • Imanol Núñez

Abstract

This paper investigates the prevalence and distribution of under-skilling across Europe. First, in order to understand why under-skilling occurs, three main theoretical approaches are discussed: (a) Inefficient signaling, (b) Skill shortages, and (c) On-the-job training substitution. Second, in order to measure the real dimension of the problem, we use the Cedefop European Skills and Jobs Survey (ESJS)1to assess whether workers’ skills were lower than required at the point they started their job. Our results are rather mixed. First, we find under-skilling being related to some academic fields such as Health & Medicine, and Engineering. Second, we find that under-skilling is more prevalent among, not surprisingly, young workers but, rather unexpectedly, among permanent workers working in high-skilled occupations.

Suggested Citation

  • Ilias Livanos & Imanol Núñez, 2017. "Rethinking Under-Skilling in Europe☆," Research in Labor Economics, in: Skill Mismatch in Labor Markets, volume 45, pages 279-304, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-912120170000045008
    DOI: 10.1108/S0147-912120170000045008
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    More about this item

    Keywords

    Under-skilling; over-skilling; skill shortages; skill mismatch; J2; J21; J24;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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