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How Useful Is the Concept of Skills Mismatch?

Author

Listed:
  • McGuinness, Seamus

    () (Economic and Social Research Institute, Dublin)

  • Pouliakas, Konstantinos

    () (European Centre for the Development of Vocational Training (Cedefop))

  • Redmond, Paul

    () (ESRI, Dublin)

Abstract

The term skill 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 underutilised human capital in the form of overeducation and skills underutilisation, 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.

Suggested Citation

  • McGuinness, Seamus & Pouliakas, Konstantinos & Redmond, Paul, 2017. "How Useful Is the Concept of Skills Mismatch?," IZA Discussion Papers 10786, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp10786
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    References listed on IDEAS

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    Cited by:

    1. van Wetten, Sanne J.L. & Gerards, Ruud & de Grip, Andries, 2020. "Are graduates’ intrapreneurial skills optimally used for innovation?," Technovation, Elsevier, vol. 96.
    2. Vera Maltseva, 2019. "The Concept of Skills Mismatch and the Problem of Measuring Cognitive Skills Mismatch in Cross-National Studies," Educational Studies, Higher School of Economics, issue 3, pages 43-76.
    3. Brunello, Giorgio & Wruuck, Patricia & Maurin, Laurent, 2019. "Skill shortages and skill mismatch in Europe: A review of the literature," EIB Working Papers 2019/05, European Investment Bank (EIB).
    4. Horbach, Jens & Rammer, Christian, 2020. "Labor shortage and innovation," ZEW Discussion Papers 20-009, ZEW - Leibniz Centre for European Economic Research.
    5. SAM, Vichet, 2018. "Overeducation among graduates in developing countries: What impact on economic growth?," MPRA Paper 87674, University Library of Munich, Germany.
    6. Gimpelson, Vladimir & Kapeliushnikov, Rostislav, 2017. "Age and Education in the Russian Labour Market Equation," IZA Discussion Papers 11126, Institute of Labor Economics (IZA).
    7. Redmond, Paul & Whelan, Adele, 2017. "Educational Attainment and Skill Utilization in the Irish Labour Market: An EU Comparison," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    8. Muhammad Ali Asadullah, 2019. "Quadratic Indirect Effect of National TVET Expenditure on Economic Growth Through Social Inclusion Indicators," SAGE Open, , vol. 9(1), pages 21582440198, March.
    9. Sucharita Ghosh & Emanuele Grassi, 2020. "Overeducation and overskilling in the early careers of PhD graduates: Does international migration reduce labour market mismatch?," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 915-944, August.
    10. Brunello, Giorgio & Wruuck, Patricia, 2019. "Skill Shortages and Skill Mismatch in Europe: A Review of the Literature," IZA Discussion Papers 12346, Institute of Labor Economics (IZA).
    11. McQuinn, Kieran & O'Toole, Conor & Economides, Philip & Monteiro, Teresa, 2017. "Quarterly Economic Commentary, Winter 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20174, January.
    12. Martin, John P., 2018. "Skills for the 21st Century: Findings and Policy Lessons from the OECD Survey of Adult Skills," IZA Policy Papers 138, Institute of Labor Economics (IZA).
    13. Si-Jeoung Kim & Sang Ok Choi, 2018. "The Effects of Job Mismatch on Pay, Job Satisfaction, and Performance," Journal of Open Innovation: Technology, Market, and Complexity, MDPI, Open Access Journal, vol. 4(4), pages 1-13, October.
    14. Мальцева В. А., 2019. "Концепция skill mismatch и проблема оценки несоответствия когнитивных навыков в межстрановых исследованиях," Вопросы образования // Educational Studies, НИУ ВШЭ, issue 3, pages 43-76.
    15. Nik Dawson & Marian-Andrei Rizoiu & Benjamin Johnston & Mary-Anne Williams, 2020. "Predicting Skill Shortages in Labor Markets: A Machine Learning Approach," Papers 2004.01311, arXiv.org, revised Aug 2020.
    16. Vichet Sam, 2018. "Education-job mismatches and their impacts on job satisfaction: An analysis among university graduates in Cambodia," Working Papers hal-01839463, HAL.
    17. SAM, Vichet, 2018. "Education-job mismatches and their impacts on job satisfaction: An analysis among university graduates in Cambodia," MPRA Paper 87928, University Library of Munich, Germany, revised 15 Jul 2018.
    18. Alexandru Avram & Marco Benvenuto & Costin Daniel Avram & Ginevra Gravili, 2019. "Assuring SME’s Sustainable Competitiveness in the Digital Era: A Labor Policy between Guaranteed Minimum Wage and ICT Skill Mismatch," Sustainability, MDPI, Open Access Journal, vol. 11(10), pages 1-20, May.
    19. Kouadio Clément KOUAKOU & Andoh Régis Vianney YAPO, 2019. "Mesures et déterminants de l’inadéquation compétences-emploi en Côte d’Ivoire," Working Paper 95840cf0-b39b-45ab-9108-d, Agence française de développement.

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    More about this item

    Keywords

    skill shortages; overeducation; skill mismatch; skill gaps; European skills and jobs survey; policy;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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