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Skill gaps in the workplace: measurement, determinants and impacts

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  • Seamus McGuinness
  • Luis Ortiz

Abstract

This paper identifies the key factors determining the correct identification of skill gaps within firms. The impact of skill gaps on average training expenditures and labour costs is also measured. The research finds that both HRM and collective bargaining arrangements are important factors in facilitating the accurate identification of skill gaps within firms.
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Suggested Citation

  • Seamus McGuinness & Luis Ortiz, 2016. "Skill gaps in the workplace: measurement, determinants and impacts," Industrial Relations Journal, Wiley Blackwell, vol. 47(3), pages 253-278, May.
  • Handle: RePEc:bla:indrel:v:47:y:2016:i:3:p:253-278
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    File URL: http://hdl.handle.net/10.1111/irj.12136
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    1. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 79-119.
    2. Richard Fabling & David C. Maré, 2016. "Firm-Level Hiring Difficulties: Persistence, Business Cycle And Local Labour Market Influences," Journal of Labor Research, Springer, vol. 37(2), pages 179-210, June.
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    4. Kampelmann, Stephan & Rycx, François, 2012. "The impact of educational mismatch on firm productivity: Evidence from linked panel data," Economics of Education Review, Elsevier, vol. 31(6), pages 918-931.
    5. Budría, Santiago & Moro-Egido, Ana I., 2008. "Education, educational mismatch, and wage inequality: Evidence for Spain," Economics of Education Review, Elsevier, vol. 27(3), pages 332-341, June.
    6. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, July.
    7. Lindley, Joanne, 2009. "The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey," Economics of Education Review, Elsevier, vol. 28(1), pages 80-89, February.
    8. Haskel, Jonathan & Martin, Christopher, 2001. "Technology, Wages, and Skill Shortages: Evidence from UK Micro Data," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 642-658, October.
    9. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
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    11. Jacob A. Mincer, 1974. "Age and Experience Profiles of Earnings," NBER Chapters,in: Schooling, Experience, and Earnings, pages 64-82 National Bureau of Economic Research, Inc.
    12. Glenda Quintini, 2011. "Over-Qualified or Under-Skilled: A Review of Existing Literature," OECD Social, Employment and Migration Working Papers 121, OECD Publishing.
    13. Richard R. Verdugo & Naomi Turner Verdugo, 1989. "The Impact of Surplus Schooling on Earnings: Some Additional Findings," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 629-643.
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    15. Glenda Quintini, 2011. "Right for the Job: Over-Qualified or Under-Skilled?," OECD Social, Employment and Migration Working Papers 120, OECD Publishing.
    16. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
    17. McGuinness, Seamus & Kelly, Elish & O'Connell, Philip J., 2008. "The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland," Papers WP266, Economic and Social Research Institute (ESRI).
    18. Culpepper, Pepper D, 1999. "The Future of the High-Skill Equilibrium in Germany," Oxford Review of Economic Policy, Oxford University Press, vol. 15(1), pages 43-59, Spring.
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    20. Mavromaras, Kostas G. & McGuinness, Seamus & O'Leary, Nigel C. & Sloane, Peter J. & Wei, Zhang, 2010. "Job Mismatches and Labour Market Outcomes: Panel Evidence on Australian University Graduates," IZA Discussion Papers 5083, Institute for the Study of Labor (IZA).
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    More about this item

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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