Imbalanced Job Polarization and Skills Mismatch in Europe

Abstract

This paper considers the education of the labour force based on an analysis of trends in and the relationships between job polarization and skills mismatch. Both job polarization and skills mismatch have become topics of increasing interest, but relationships between the two have been relatively neglected in the literature. We argue that the relationship between polarization and skills mismatch is an empirical matter, which we analyse at both the macroeconomic and microeconomic level in European countries. A novel job polarization index (JPI) is proposed to measure imbalanced job polarization. It takes into account not only the change in the share of medium-level jobs, as is typical for measuring pure polarization, but also the imbalance between the change in high-level and low-level jobs. Skills mismatch at macrolevel is measured by a skills mismatch index (SMI), while traditional measures of undereducation and overeducation are used at the microeconomic level. At the macroeconomic level, we estimate a system of two equations, one for each of the country-level variables gauging polarization and mismatch, respectively. Imbalanced job polarization measured Electronic supplementary material The online version of this article (doi:10.1007/s12651-016-0196-y) contains supplementary material, which is available to authorized users.Responsibility for opinions expressed in this paper rests solely with the authors and does not constitute an endorsement by the ILO. by the JPI negatively affects skills mismatch at the macroeconomic level (SMI), but there is no significant reverse effect. Thereafter we consider the microeconomic level and study the determinants of mismatch using multi-level mixed effects logistic models. The effect of imbalanced job polarization on individual-level mismatch was arguably favourable for individuals in non-crisis time, decreasing overeducation risk although also increasing the chances of undereducation, both gauged using the normative measure, but unfavourable during the global financial crisis of 2008-2009 and the following two years.

The anatomy of job polarisation in the UK

“… 6 See Sparreboom and Tarvid ( 2016 ) for a discussion and analysis of the link between polarisation skill mismatch that also illustrate the importance of understanding whether changing in the occupational structure result from changes in the demand for certain skills by firms or from changes in the supply of such skills. …”

“… 11 For a discussion of alternative approaches to measuring polarisation see Sparreboom and Tarvid ( 2016 ). …”

Teamwork is one of the skills most used at work

“…Research has shown that there are outcomes from coaching and mentoring at both the individual and organisation level, and that these outcomes are interconnected and reciprocal Figure 5.5. For the employee, coaching and mentoring nurture: a better balancing of work and personal life (Gegner, 1997[56]) improved psychological and social competences (Wales, 2002[57]); improved and enhanced career development; improved self-awareness and assertiveness (Bozer, Sarros and Santora, 2014 [58]; Gatling, Castelli and Cole, 2013 [59]; Wales, 2002[57]); increased self-confidence (Wales, 2002[57]); better developed relationships/networks/interpersonal skills (Wales, 2002[57]); improvements to setting and achieving goals (Smither et al, 2003[60]); increased role clarity (Kim et al, 2013[61]; Sonesh et al, 2015 [62]); and changing behaviours (Blackman, Moscardo and Gray, 2016[63]; Grant, 2005[64]; Wasylyshyn, 2003[65]).…”

How might the negative impact of higher education on growth be explained? The role of vertical qualification (mis)match in an MRW‐type model

“…So far, the mapping between the educational levels and occupations over the examined period (2000–2016) followed ISCO‐08. Though easy and objective, this normative approach assumes pre‐determined static mappings between jobs and academic degrees over time (Sparreboom & Tarvid, , p. 23). As was pointed out in the preceding paragraphs, a likely explanation of the growing vertical mismatch among college graduates might be given in light of the higher levels of qualification required for some jobs that have been traditionally located down the occupational ladder.…”