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Skill Gaps, Skill Shortages, and Skill Mismatches

Author

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  • Peter H. Cappelli

    (Peter H. Cappelli is Professor of Management at the Wharton School and Director of the Center for Human Resources and Research Associate at the National Bureau of Economic Research (NBER).)

Abstract

Concerns over the supply of skills in the U.S. labor force, especially education-related skills, have exploded in recent years with a series of reports not only from employer-associated organizations but also from independent and even government sources making similar claims. These complaints about skills are driving much of the debate around labor force and education policy, yet they have not been examined carefully. In this article, the author assesses the range of these charges as well as other evidence about skills in the labor force. Very little evidence is consistent with the complaints about a skills shortage, and a wide range of evidence suggests the complaints are not warranted. Indeed, a reasonable conclusion is that overeducation remains the persistent and even growing condition of the U.S. labor force with respect to skills. The author considers three possible explanations for the employer complaints and the associated policy implications.

Suggested Citation

  • Peter H. Cappelli, 2015. "Skill Gaps, Skill Shortages, and Skill Mismatches," ILR Review, Cornell University, ILR School, vol. 68(2), pages 251-290, March.
    • Handle: RePEc:sae:ilrrev:v:68:y:2015:i:2:p:251-290
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    Citations

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    Cited by:

    1. Charles R. Hulten, 2017. "The Importance of Education and Skill Development for Economic Growth in the Information Era," NBER Working Papers 24141, National Bureau of Economic Research, Inc.
    2. Andrew Weaver, 2021. "Hiring Frictions in a Regulated Occupation: Evidence from US Laboratories," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 899-927, September.
    3. Elena Grinza & François Rycx, 2020. "The Impact of Sickness Absenteeism on Firm Productivity: New Evidence from Belgian Matched Employer–Employee Panel Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(1), pages 150-194, January.
    4. C. Jeffrey Waddoups, 2018. "Has complementarity between employer-sponsored training and education in the U.S. changed during the 2000s?," Education Economics, Taylor & Francis Journals, vol. 26(1), pages 46-61, January.

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