Skills Mismatch: Concepts, Measurement and Policy Approaches

Abstract

The term skills 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 underutilized human capital in the form of overeducation and skills underutilization, 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.The job evaluation method is based on the assessments of professional job analysts who are tasked with measuring the educational requirements of occupations for the purpose of constructing occupational dictionaries (such as DOT or O*NET in the United States or SOC in the United Kingdom). The advantage of this approach is that it is perceived to be more accurate as it is based on field expertize. In terms of disadvantages, the job evaluation method is very expensive to carry out and, therefore, is not widely available at a national level. Furthermore, occupational requirements can change rapidly over time suggesting the approach can become outdated if the analysis is not updated on a fairly regular basis

Institutional Arrangements and Overeducation: Challenges for Sustainable Growth. Evidence from the Romanian Labour Market

“…This is because underutilisation of human capital in the form of overeducation and skills underutilisation has received little policy attention so far. Useful policy recommendations need to be formulated in the European Union [60]. Given the negative correlation between the quality of institutional arrangements and QTOE, as reflected by the rate of tertiary graduates who never worked among unemployed tertiary graduates, we argue that twofold policies and measures are required.…”

Generic and Specific Skills as Components of Human Capital: New Challenges for Education Theory and Practice

“…This was laid out in the WEF report, where Russia ranked 89th in the availability of highly qualified workers [WEF, 2017]. However, the mismatch applies not only to jobs available on the labor market and specific professions associated with them, but also to skills that are in demand more broadly [McGuinness et al, 2018]. This means that the problem lies not only in the sphere of specific human capital, but also in the general sets of skills that are applicable to different jobs and even to various industries.…”

The role of education, occupational match on job satisfaction in the behavioral and social science workforce

“…The decentralized/free market approach to NHRD policy in the United States allows states to determine their NHRD‐related policies and processes. Furthermore, the United States uses a school‐based model of occupational education and training in which higher education is primarily delivered through the formal education system (McGuinness et al, ; Wolbers, ). Japan has a similar system to the United States, whereas other nations, such as Germany and France, favor systems that tightly link education and vocational training with workplace training.…”

“…This research aims to increase our understanding of behavioral and social sciences (BSS) workers' employment outcomes within their respective fields, and by workforce diversity group, with respect to job satisfaction and earnings. This study is concerned with the impact of horizontal mismatch given the high degree of uncertainty regarding whether the outcomes associated with it are more likely to be positive or negatively influenced (Béduwé & Giret, ; McGuinness, Pouliakas, & Redmond, ; Robst, ; Verhaest, Sellami, & Van der Velden, ; Wolbers, ). Less is known about workforce outcomes relating to horizontal mismatch than other forms of education‐job misalignment, including vertical mismatch (over or under employment), skills gaps, and skills obsolescence (Robst, ; Robst & VanGilder, ; Verhaest et al, ).…”