The following blog was written and published by dmh Associates.
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.
This discussion paper written by Seamus McGuinness ESRI and IZA, Konstantinos Pouliakas Cedefop, University of Aberdeen and IZA and Paul Redmond ESRI and published by the I Z A Institute of Labour Economics provides a clear overview of each concept and discusses the measurement and inter-relatedness of different
forms of mismatch.
It presents 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, they assess the incidence of various combinations of skills mismatch across the EU.
Finally, the paper reviews the European Commission’s country-specific recommendations and find that skills mismatch, when referring to under-utilised human capital in the form of over education and skills underutilisation, receives little policy attention. Read more