The Impact of High-Level Skill Shortages on Firm-Level Performance: Evidence from the UK Technical Graduate Labour Market
AbstractThis paper uses data from the 1998 Technical Graduates Employers Survey, combined with post-survey financial data, to examine the effects of high-level skill shortages on firm-level performance in the UK. We focus specifically on enterprise difficulties in recruiting engineers and scientists with skills related to Information and Communication Technologies (ICTs). In contrast to most other surveys of skill shortages, these data distinguish clearly between external recruitment difficulties which are largely attributable to low numbers of job applicants and recruitment problems which are primarily due to shortcomings in the quality of job applicants. Cross-sectional and panel regression analysis of the determinants of sales per employee at firm level suggests that quality-related difficulties in recruiting ICTskilled engineers and scientists do not have any statistically significant effects on performance. However, quantity-based difficulties in recruiting technical graduates with ICT skills are significantly negatively related to average sales per employee. The mechanisms by which unfilled positions for ICT-skilled engineers and scientists may contribute to relatively weak performance include slower development of new products and services, failure to meet delivery dates, higher costs of employing temporary and contract staff, loss of new customer orders and lack of forward planning.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 107.
Date of creation: May 2004
Date of revision:
Contact details of provider:
Postal: 2 Dean Trench Street Smith Square London SW1P 3HE
Web page: http://niesr.ac.uk
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Communications Manager).
If references are entirely missing, you can add them using this form.