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Skill mismatch and the dynamics of Italian companies’ productivity

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  • Lucrezia Fanti
  • Dario Guarascio
  • Matteo Tubiana

Abstract

This work explores the relationship between labour productivity and skill (mis) match relying on a unique database integrating information at both the firm and the worker level. The analysis is based on a novel skill match indicator providing actual and qualitatively detailed information on the demand/supply of skills. Focusing on a sample of Italian limited liability companies observed during 2012, 2014 and 2017, we show that the ability to match their skills need via new hires is always positively correlated to companies’ labour productivity. This result is robust to the inclusion of variables accounting for sectoral-level training intensity, firm-level recruitment behaviour, a capillary set of firm-level controls and across size classes.

Suggested Citation

  • Lucrezia Fanti & Dario Guarascio & Matteo Tubiana, 2021. "Skill mismatch and the dynamics of Italian companies’ productivity," Applied Economics, Taylor & Francis Journals, vol. 53(59), pages 6790-6803, December.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:59:p:6790-6803
    DOI: 10.1080/00036846.2021.1948963
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    Cited by:

    1. Serenella Caravella & Valeria Cirillo & Francesco Crespi & Dario Guarascio & Mirko Menghini, 2023. "The diffusion of digital skills across EU regions: structural drivers and polarisation dynamics," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 10(1), pages 820-844, December.
    2. Fanti, Lucrezia & Pereira, Marcelo C. & Virgillito, Maria Enrica, 2023. "A North-South agent based model of segmented labour markets. The role of education and trade asymmetries," GLO Discussion Paper Series 1268, Global Labor Organization (GLO).

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