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Skill Mismatch Unemployment

Author

Listed:
  • Marianna Kudlyak

    (Federal Reserve Bank of San Francisco)

  • Erin Wolcott

    (Middlebury College)

Abstract

We measure unemployment due to mismatch between the demand and supply of skills using an extended search and matching framework. In our framework, unemployed workers and vacancies meet randomly, but the probability of matching depends on how closely the unemployed worker's skillset aligns with the job requirements. We use data from the CPS, O*NET, and HWOL and find that skill mismatch increased during the Great Recession, but has since returned to pre-recession levels.

Suggested Citation

  • Marianna Kudlyak & Erin Wolcott, 2019. "Skill Mismatch Unemployment," 2019 Meeting Papers 1408, Society for Economic Dynamics.
    • Handle: RePEc:red:sed019:1408
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