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Skills Mismatch: Concepts, Measurement And Policy Approaches

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  • Seamus McGuinness
  • Konstantinos Pouliakas
  • Paul Redmond

Abstract

The term skills mismatch is very broad and can relate to many forms of labour market friction, including vertical mismatch, skill gaps, skill shortages, field of study (horizontal) mismatch and skill obsolescence. In this paper, we provide a clear overview of each concept and discuss the measurement and inter‐relatedness of different forms of mismatch. We present a comprehensive analysis of the current position of the literature on skills mismatch and highlight areas which are relatively underdeveloped and may warrant further research. Using data from the European Skills and Jobs Survey, we assess the incidence of various combinations of skills mismatch across the EU. Finally, we review the European Commission's country‐specific recommendations and find that skills mismatch, when referring to underutilized human capital in the form of overeducation and skills underutilization, receives little policy attention. In cases where skills mismatch forms part of policy recommendations, the policy advice is either vague or addresses the areas of mismatch for which there is the least available evidence.

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  • Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
  • Handle: RePEc:bla:jecsur:v:32:y:2018:i:4:p:985-1015
    DOI: 10.1111/joes.12254
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    3. McGuinness, Seamus & Pouliakas, Konstantinos & Redmond, Paul, 2019. "Skills-Displacing Technological Change and Its Impact on Jobs: Challenging Technological Alarmism?," IZA Discussion Papers 12541, Institute of Labor Economics (IZA).
    4. Maciej Berk{e}sewicz & Greta Bia{l}kowska & Krzysztof Marcinkowski & Magdalena Ma'slak & Piotr Opiela & Robert Pater & Katarzyna Zadroga, 2019. "Enhancing the Demand for Labour survey by including skills from online job advertisements using model-assisted calibration," Papers 1908.06731, arXiv.org.
    5. Rafael Muñoz de Bustillo Llorente & Sudipa Sarkar & Raquel Sebastian & Jose-Ignacio Antón, 2018. "Educational mismatch in Europe at the turn of the century: Measurement, intensity and evolution," International Journal of Manpower, Emerald Group Publishing, vol. 39(8), pages 977-995, November.
    6. Matteo Sostero & Enrique Fernández-Macías, 2021. "The Professional Lens: What Online Job Advertisements Can Say About Occupational Task Profiles," JRC Working Papers on Labour, Education and Technology 2021-13, Joint Research Centre (Seville site).
    7. Elena Varshavskaya & Elena Kotyrlo, 2019. "Engineering and Economics Graduates: Between Demand and Supply," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 98-128.
    8. Варшавская Е. Я. & Котырло Е. С., 2019. "Выпускники Инженерно-Технических И Экономических Специальностей: Между Спросом И Предложением," Вопросы образования // Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 98-128.
    9. Pérez Rodrigues, Sandra & Huijts, Tim & van der Velden, Rolf & Jacobs, Babs, 2020. "Required literacy and numeracy skill levels for occupations in OECD countries," ROA Technical Report 008, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    10. Lobsiger, Michael & Rutzer, Christian, 2021. "Green potential of Europe's labour force: Relative share and possible skills imbalances," Working papers 2021/04, Faculty of Business and Economics - University of Basel.
    11. Manuel Salas-Velasco, 2021. "Mapping the (mis)match of university degrees in the graduate labor market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-23, December.
    12. Marius-Cristian Pană & Mina Fanea-Ivanovici, 2019. "Institutional Arrangements and Overeducation: Challenges for Sustainable Growth. Evidence from the Romanian Labour Market," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-19, November.
    13. Li, Tiebei & Dodson, Jago & Goldie, Xavier, 2021. "Urban structure, commuting burden, and employment status of labour forces in an Australian city," Journal of Transport Geography, Elsevier, vol. 93(C).
    14. Esperanza Vera-Toscano & Elena C. Meroni, 2021. "An Age–Period–Cohort Approach to the Incidence and Evolution of Overeducation and Skills Mismatch," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 711-740, January.
    15. Sam Jones & Ricardo Santos & Gimelgo Xirinda, 2020. "Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique," WIDER Working Paper Series wp-2020-47, World Institute for Development Economic Research (UNU-WIDER).
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    15. Antonio Di Paolo & Ferran Mañé, 2014. "Are we wasting our talent? Overqualification and overskilling among PhD graduates," Working Papers XREAP2014-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2014.
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