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New Technologies, Digital Skills, and Occupational Mobility: Evidence from Ireland

Author

Listed:
  • Yadav, Anil

    (Central Bank of Ireland)

  • McHale, John

    (University of Galway, Ireland)

  • Galetti, Jefferson RB

    (University of Galway, Ireland)

Abstract

This paper examines how skill mismatch, particularly in digital skills, constrains occupational mobility. Using worker transition data from the Irish Labour Force Survey and skill vectors from the ESCO database, we construct occupation-level mismatch measures and estimate their effect on worker flows in a framework combining matching and gravity models. Greater skill mismatch significantly reduces occupational mobility, with stronger constraints on transitions between digitally intensive occupations. We also document substantial heterogeneity in bilateral mobility costs and show that occupations that are easier to enter are harder to exit, creating bottlenecks. These findings highlight the importance of retraining policies, especially those supporting digital skill acquisition, to improve labour market adaptability

Suggested Citation

  • Yadav, Anil & McHale, John & Galetti, Jefferson RB, 2026. "New Technologies, Digital Skills, and Occupational Mobility: Evidence from Ireland," Research Technical Papers 04/RT/26, Central Bank of Ireland.
    • Handle: RePEc:cbi:wpaper:04/rt/26
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    File URL: https://www.centralbank.ie/docs/default-source/publications/research-technical-papers/04rtp26-new-technology-digital-skills-and-occupational-mobility-evidence-from-ireland-(yadav-mchale-and-galetti).pdf?sfvrsn=88a8721a_1
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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