Skill shortages and skill mismatch: A review of the literature

Abstract

We review the recent economic literature on skill shortages and skill mismatch by paying particular attention to the demand side of skill mismatch, which have not received much attention in the relevant literature. We discuss measurement issues and how skill shortages and mismatch vary both with the business cycle and with structural factors. We review the economic costs for workers and firms and conclude by considering the policy implications, including how responsibilities for skill development can best be shared and what role policies can play to better address skill shortages and mismatches.

Intelligent Academic Specialties Selection in Higher Education for Ukrainian Entrants: A Recommendation System

“…The following problems have been studied in selected PRISMA research papers: Higher education quality assurance ( Alakbarov 2021 ; Allayarova 2019 ; Asare et al 2021 ); Knowledge-based recommender system ( Barabash et al 2021 ; Barón et al 2015 ; Bin-Noor et al 2021 ; Brunello and Wruuck 2021 ); E-learning and distance learning ( Bukralia et al 2015 ; Burman et al 2021 ; Casselman 2021 ; Chahal et al 2020 ); Inter-professional education ( Cheng 2017 ); Network course recommendation system ( Cinquin et al 2019 ; Dhar and Jodder 2020 ; Dolgikh 2021 ; Ehimwenma and Krishnamoorthy 2021 ); Modern information communication technologies in the higher education sector ( El Gourari et al 2021 ; Elahi et al 2022 ; Ellyatt 2021 ; Elumalai et al 2019 ); Transformation of education during the COVID-19 pandemic ( Erridge 2006 ; Ezz and Elshenawy 2020 ; Fedushko and Ustyianovych 2020 ); Digitalization in higher education ( Gao et al 2021 ; Garay-Jiménez et al 2021 ; Gil et al 2019 ); Personalized recommendation system for learning resources ( Habib et al 2021 ; Ibrahim et al 2019 ; Karan and Asgari 2021 ; Khan and Ramzan 2018 ; Khosravi et al 2021 ); Artificial intelligence techniques for education tasks solving ( Kim Rosemary et al 2014 ; ...…”

Trends in Educational and Skill Mismatch in the United States

“…Individual factors: Mismatch arises at the time of the transition between schools to work-at the time of the search and hiring process (Brunello and Wruuck 2021;Sattinger 2012). Family responsibilities may reduce the likelihood of finding a job that fully utilizes a job seeker's skills in a limited geographic area.…”

“…Although research about mismatch differs across disciplines, most scholars agree on the undesirable circumstances of this mismatch. The gap between the required and actual capability of workers is closely linked to social and economic costs at both the micro and macro levels (Brunello and Wruuck 2021). Typically, individuals with skill surplus suffer from their inability to convert skills into occupational advantages.…”

“…In the literature of educational and skill mismatch, many studies have been conducted to understand the incidence, determinants, and impacts of mismatch in the labor market (e.g., Allen et al 2013;Brunello and Wruuck 2021;Desjardins and Rubenson 2011;Luksyte and Spitzmueller 2011;Mavromaras et al 2009;Quintini 2011a;Støren and Wiers-Jenssen 2010). However, only a little attention has been paid to better understanding how the number of workers with skill and educational mismatch has changed and how educational expansion and transformations in the labor market have contributed to such change (e.g., Groot and van den Brink 2000;Vaisey 2006).…”

Wage premium for soft skills in IT sector

“…Academic research in job occupations provides evidence of skill mismatch and its impact on wages of workers. The skill mismatch is created by different representations of an ideal candidate (Brunello and Wruuck, 2021). For example, companies hiring specialists demand not only relevant education degree and working experience but also different combinations of two main types of skills, namely, "soft" (cognitive abilities, teamwork, communication, etc.)…”