Skill Mismatch Research Articles

Measuring mismatch unemployment in the Malaysia labour market

Despite its low unemployment rate, the Malaysia labour market is currently sending signals of mismatch, a misallocation between demand and supply that may occur in the form of educational, skills, geographical, occupational, and industrial mismatches. Failure to identify the right type of mismatches will lead to ineffective policies to solve the unemployment issue. Using matching function, this study aims to calculate the labour mismatch index and measure the contribution of mismatch unemployment to the rise of unemployment rate. Employing various sources of data from the Department of Statistics Malaysia, Ministry of Human Resource Malaysia and Bank Negara Malaysia, this study found the presence of skills mismatch in the Malaysia labour market, with the mismatch index gradually increased from 0.108 in 2007 to 0.273 in 2017. Mismatch unemployment explained at most half of the total observed increase in unemployment rate, signalling severe mismatch in the Malaysia labour market.

Nature of Work and Distribution of Risk: Evidence from Occupational Sorting, Skills, and Tasks

How does the nature of work—teleworkability and contact intensity—shape the distribution of health, earnings, and unemployment risks, created by the COVID-19 pandemic? To answer this question, I consider two contexts. First, I show that the existing patterns of spousal occupational sorting in the United States matter for the distribution of these risks. In particular, I show that sorting into occupations with similar contact intensity in the workplace mitigates the risk of intra-household contagion relative to the situation where spouses match at random in terms of occupations (zero sorting). Furthermore, I show that sorting into occupations with similar teleworkability exacerbates the exposure to earnings and unemployment risks relative to the case of zero sorting. Second, I document that teleworkable occupations more likely require higher education and experience levels as well as greater cognitive, social, character, and computer skills, compared to non-teleworkable occupations. This difference in skill requirements affects earnings and unemployment risks by increasing the likelihood of skill mismatch for the newly unemployed. My results imply that the current economic downturn may have long-run effects on employment prospects and earnings of workers who had non-teleworkable or high-contact-intensity jobs at the onset of the COVID-19 outbreak. I discuss the relevant policy implications and associated policy constraints that follow from my findings.

The Transition to Self-Employment and Perceived Skill-Mismatches: Panel Data Evidence from Eleven EU Countries

Some studies using either objective or subjective indicators, find that self-employed individuals are less likely to be or to report being skill-mismatched in comparison with salaried employees. The aim of this paper is to analyze the impact of the transition from salaried employment to self-employment on self-reported skill mismatches. To do so, this article uses eight waves of the European Community Household Panel covering the period 1994–2001. The panel data nature of this rich dataset, allows us to track individuals over time and measure self-reported skill-mismatches before and after the transition for the same individuals, using as the comparison group those individu-als who remain in salaried employment during the whole sample period. Our empirical findings indicate that those individuals who transit from salaried employment to self-employment reduce their probability to report being skill-mismatched after the transition. Interestingly, we also observe that this effect vanish if the transition is done from an unemployment status, and that the effect is quite heterogenous across countries.

Recessions and Occupational Match Quality: The Role of Age, Gender, and Education

Although the adverse labor market effects of economic recessions have been well documented, a notable omission in the literature is how recessions impact workers' job match quality. This paper considers the short and longer-term losses in productivity associated with the job changing brought in train by the two most recent recessions. Changes in match quality are the mechanism, with dislocated workers being reemployed in jobs for which they are more mismatched. Using monthly data from the 1979 and 1997 cohorts of the National Longitudinal Survey of Youth and the Current Population Survey (CPS), we document direct changes in occupational match quality and the associated changes in wages. We first investigate how workers' match qualities change over the lifecycle and report that the total amount of mismatch averaged over all workers of the younger cohort actually decreased through time. For the older cohort, we then explore the role of age, education, gender, and occupational task groups. Economic recessions are shown to disproportionately harm the match quality of mid-aged workers versus that of young workers; to have more serious consequences for the match quality of men than women, especially highly educated men; and lead to occupational polarization, thereby amplifying the skill mismatch of mid-aged workers.

Educational Mismatch and Skill Mismatch in the Youth Labor Market: Panel Evidence from South Korea

Abstract Most prior research on labor market mismatch was constrained by the unavailability of data on skill mismatch and also the absence of panel data which would provide controls for unmeasured heterogeneity. This paper makes use of the panel element of Korea Labor & Income Panel Survey (KLIPS) data and identifies the wage effects of educational mismatch and skill mismatch both separately and jointly. It clearly shows that only a small proportion of the wage effect of educational mismatch is accounted for by skill mismatch, suggesting a relatively weak relation between educational mismatch and skill mismatch. In the analysis appropriate panel methodology produces much weaker estimates of the relevant coefficients than the pooled OLS model. This result indicates that unobserved individual-specific characteristics play a substantial role in the way in which mismatch effects are determined.

Ukrainian

Ukrainian

The 2030 Agenda and coherent national development policy: In dialogue with South African policymakers on Policy Coherence for Sustainable Development

AbstractThe Policy Coherence for Sustainable Development (PCSD) agenda is regarded as the principal instrument to ensure the coherent alignment of the Sustainable Development Goals (SDGs) with domestic policies. Due to PCSD's genesis in the foreign aid donor–recipient relationship, there is a shortage of research on policymakers in developing countries' perspective on PCSD. In this article, interviews with South African policymakers are used to evaluate the applicability of PCSD beyond the donor–recipient relationship critically. Emphasis is placed on vertical coherence. Policymakers are found to emphasise (a) the need to prioritise the SDGs' targets in terms of national priorities, (b) the importance of attending to institutional issues such as a lack of accountability and efficiency, (c) addressing the skills mismatch of capacity development interventions, and (d) engaging party politics.

Impact of TVET on Labour Market Outcomes and Women’s Empowerment in Rural Areas: A Case Study from Cachar District, Assam

This article evaluates the impact of technical and vocational education and training (TVET), a state-sponsored skills training programme, on the scope and quality of employment, income and women’s empowerment among rural youths in Cachar district of Assam. Using a Heckman two-step approach, we find that training does enhance labour market outcomes of rural youths and has a particularly potent effect in securing women’s empowerment. However, the study reveals that employment generation under the programme is heavily biased in favour of wage employment. It is therefore suggested that due attention should be given to promote self-employment ventures by ensuring credit availability and logistical support by tying up with financial institutions and other agencies. Besides, peripheral issues such as level of trainee satisfaction, workplace-related problems and skill mismatch in training and job requirements also need to be addressed for increasing programme efficacy.

Structural Unemployment in Luxembourg

This paper combines both micro and macro approaches to identify the drivers of (un)employment and inactivity in Luxembourg. The young, low-skilled, and non-EU migrants are found to be the most vulnerable groups in the labor market. In addition to skills mismatches, work disincentives embedded in the tax-benefit system constitute a factor explaining structural unemployment. High unemployment of young and low-skilled workers reflects substantial unemployment traps, while disincentives for second earners (respectively the generosity of the pension system) contribute to lower labor market participation of women (respectively seniors). Further reduction of structural unemployment requires better integration of vulnerable groups into the labor market and improved targeting of benefits to make work more rewarding.

Structural Unemployment in Luxembourg: Bad Luck or Rational Choice?

This paper combines both micro and macro approaches to identify the drivers of (un)employment and inactivity in Luxembourg. The young, low-skilled, and non-EU migrants are found to be the most vulnerable groups in the labor market. In addition to skills mismatches, work disincentives embedded in the tax-benefit system constitute a factor explaining structural unemployment. High unemployment of young and low-skilled workers reflects substantial unemployment traps, while disincentives for second earners (respectively the generosity of the pension system) contribute to lower labor market participation of women (respectively seniors). Further reduction of structural unemployment requires better integration of vulnerable groups into the labor market and improved targeting of benefits to make work more rewarding.

Employment and skill mismatch among youth in Lebanon

PurposeEmployment and skill mismatch among youth constitute a major obstacle for access to the job market in the Middle East and North African region. The purpose of this paper is to explore factors explaining employment and the perception of the skill-mismatch problem among the youth in Lebanon using a novel data set covering young people aged from 15 to 29. The paper provides a set of empirical insights that help in the design of public policy targeting school-to-work transition.Design/methodology/approachThe authors control for a rich set of youth and household characteristics to jointly estimate the probability of being employed and the likelihood of reporting a skill-mismatch problem. The empirical analysis uses a bivariate probit model where the first equation estimates the employment status while the second estimates the determinants of skill-mismatch perceptions. The bivariate probit model considers the error terms in both equations to be correlated and the model tests for such a correlation. The authors estimate the model recursively by controlling for the employment dummy variable in the skill-mismatch equation since employed youth could be more or less likely to perceive the skill mismatch. The estimation is conducted first over the whole sample of youth, and then it is implemented by gender and region.FindingsThe authors find that youth employment is mainly correlated with age, being male, being single, having received vocational training and financial support from parents, living with parents and receiving current education. The skill-mismatch perceptions are mainly driven by being male, being single, having received post-secondary education and belonging to upper and middle social classes. The authors also find that employability level and skill-mismatch problems are jointly determined in the labor market for males and in the core region only.Originality/valueThe paper covers a country that is neglected in the literature on the employment-skill mismatch nexus in the context of school-to-work transition. The study also uses a novel data set focusing on youth. The paper contributes to our understanding of the school-to-work transition in particular and to the youth-to-adulthood transition in general.

Contributions to school-to-work transitions: vocational training, skill mismatch and policy

Contributions to school-to-work transitions: vocational training, skill mismatch and policy

Extent, nature and consequences of performing outside scope of training in global health

BackgroundGlobalization has made it possible for global health professionals and trainees to participate in short-term training and professional experiences in a variety of clinical- and non-clinical activities across borders. Consequently, greater numbers of healthcare professionals and trainees from high-income countries (HICs) are working or volunteering abroad and participating in short-term experiences in low- and middle-income countries (LMICs). How effective these activities are in advancing global health and in addressing the crisis of human resources for health remains controversial. What is known, however, is that during these short-term experiences in global health (STEGH), health professionals and those in training often face substantive ethical challenges. A common dilemma described is that of acting outside of one’s scope of training. However, the frequency, nature, circumstances, and consequences of performing outside scope of training (POST) have not been well-explored or quantified.MethodsThe authors conducted an online survey of HIC health professionals and trainees working or volunteering in LMICs about their experiences with POST, within the last 5 years.ResultsA total of 223 survey responses were included in the final analysis. Half (49%) of respondents reported having been asked to perform outside their scope of training; of these, 61% reported POST. Trainees were nearly twice as likely as licensed professionals to report POST. Common reasons cited for POST were a mismatch of skills with host expectations, suboptimal supervision at host sites, inadequate preparation to decline POST, a perceived lack of alternative options and emergency situations. Many of the respondents who reported POST expressed moral distress that persisted over time.ConclusionsGiven that POST is ethically problematic and legally impermissible, the high rates of being asked, and deciding to do so, were notable. Based on these findings, the authors suggest that additional efforts are needed to reduce the incidence of POST during STEGH, including pre-departure training to navigate dilemmas concerning POST, clear communication regarding expectations, and greater attention to the moral distress experienced by those contending with POST.

Job Polarization and the Declining Fortunes of the Young

This paper uses a life-cycle framework to document new stylized facts about the nexus between job polarization and earnings inequality. Using quarterly labor force data for the UK over the period 2000-2018, we find clear life-cycle profiles in the probability of being employed within each occupation type and wages earned therein. Cohort plots and econometric analysis suggest that labor market outcomes and prospects have gradually worsened for the young. These adverse trends are particularly significant for low-skill women: estimated cohort effects point to a fall in wages within each occupation as well as a lower propensity of being employed in abstract-task occupations. We also find evidence of general occupational downgrading in the UK, with more educated workers taking up fewer high-skill occupations than they did in the past. Our analysis informs the policy debate over appropriate measures needed to reduce skill mismatches and alleviate labor market transitions.

Labour market mismatch in emerging countries: the case of Chile

ABSTRACTOne of the most salient characteristics of the recent evolution of Chilean higher education system is its rapid expansion. Conversely, the competencies required for the workforce have been slower to emerge. This paper examines the incidence of qualification and skill mismatches across different populations, across age groups, gender, and educational levels. The discrepancy between the qualifications and skills possessed by workers, and those required to perform their jobs is measured using the Survey of Adult Skills-PIAAC and a national socioeconomic survey. Our results suggest that overeducation is increasing across time, affecting mainly younger, higher educated workers. Overskilling is also a widespread phenomenon among this group, probably due to a crowding out process. Moreover, the high competition for accessing the best positions is leading to credential inflation. Thus, the axiom that education per se leads to a good job, which guides much student decision-making, seems increasingly diffuse and requires urgent review.

Adapting the Mauritian higher education system for effective workforce development

There has been an alarming rate of graduate unemployment in Mauritius over the past 5 years. The education system has been criticized for being too academic and not driven by the requirements of industry, leading to a skills mismatch. The Mauritian government has consequently announced several new schemes to boost employment and economic growth. This study analyses two innovative approaches for effective workforce development: a university–industry collaborative programme developed by Accenture Academy and the University of Mauritius and a dual apprenticeship scheme operated by the Université des Mascareignes in partnership with the Mauritius Exports Association (MEXA). MEXA has formed a partnership with UDM for providing customized training to its employees. The article also considers the National Human Resource Development Plan for Mauritius and other relevant studies. The main research question is whether the traditional system of higher education needs to be adapted in the light of the country’s ambition to emerge as a high-income economy by 2030. The study contributes to an understanding of how partnerships and collaboration can help to improve lifelong employability in the Mauritian context and how they may ultimately contribute to the reduction of graduate unemployment.

University Program Characteristics and Education-Job Mismatch

Abstract Over-education has been demonstrated to be frequent and persistent across countries. It often goes together with working in a job not related to the field of study (horizontal mismatch) or in a job that requires lower skills than acquired (skill mismatch). We study which program characteristics help university graduates to obtain a good job match. We do the analysis for Spain since the presence of over-education is strong in this country. We analyze the three types of mismatch: over-education, horizontal mismatch, and over-skills. We focus on the role of program characteristics in avoiding over-education in the first job after graduation, and in exiting over-education in the early career. We find that those programs that are academically prestigious and those that promote entrepreneurial skills help avoid being mismatched in the first job and, in case of being mismatched in the first job, they help exit this situation. Overall, our results give support to policies promoting the development of entrepreneurial skills in the Spanish education system.

Occupational Skill Mismatch: Differences by Gender and Cohort

The authors deploy a measure of occupational mismatch based on the discrepancy between the portfolio of skills required by an occupation and the array of abilities possessed by the worker for learning those skills. Using data from the Occupational Information Network (O*NET) and the 1979 and 1997 National Longitudinal Survey of Youth (NLSY79 and NLSY97), they report distinct gender differences in match quality and changes in match quality over the course of careers. They also show that a substantial portion of the gender wage gap stems from match quality differences among the college educated. College-educated females show a significantly greater likelihood of mismatch than do males. Moreover, individuals with children and those in more flexible occupations tend to experience a larger degree of mismatch. Cohort effects are also evident in the data: College-educated males of the younger cohort (NLSY97) are worse off in terms of match quality compared to the older cohort (NLSY79), even as the younger cohort of women is doing better on average.

The Concept of Skills Mismatch and the Problem of Measuring Cognitive Skills Mismatch in Cross-National Studies

Skill mismatch implies discrepancy between the skills of job candidates or employed workers and job requirements. Types of mismatch are identified based on three criteria: quality of mismatch (surplus vs shortage), reporting party (employer vs worker/candidate), and type of skills (cognitive vs technical). Differences in types of skill mismatch account for considerable variation in qualitative interpretation and quantitative measurement. The problem of skill mismatch has been widely debated across the OECD countries, yet it remains understudied in Russian research literature. The issue raises concerns among education and labor market researchers as well as practitioners, so this article analyzes the available findings from the prospective of their potential use by educational institutions being the key consumers of data on skill mismatch and the ones that should tackle the problem.
 Five types of skill mismatch are identified, along with the specific challenges of measurement and interpretation. The article describes three methods of skill mismatch measurement to be selected as a function of which type of skill supply and demand data is used: indirect, objective direct, and subjective direct measurement. It also classifies methods of measuring the cognitive skills gap in the major cross-national studies: PIAAC, STEP, and OECD Skills for Jobs Database. It transpires that cross-national comparisons of cognitive skills mismatch mostly have to use a mixed approach due to limitations typical of cross-country research, such as the lack of objective data on skills demand and relying on subjective or indirect data alone. For this reason, the results of most cross-national skills mismatch assessments cannot be implemented by educational institutions.

Soft Skills Needed by Electrical Technology Students for 21st Century Jobs

The study investigated the rise in the rate of unemployment among Electrical Technology graduates from Colleges of Education in Nigeria despite the huge government investment in power and education sectors. The study is a qualitative study which involve a survey of literature and interview protocol. This study is designed to determine the employability skills needed by electrical technology students in Colleges of Education qualitatively with the aimed of suggesting a departure from the general framework available to all disciplines. A review of journal articles and policy documents on Employability skills and Electrical Technology was conducted, leading to the interview data that was conducted among 6 employers of labour and 4 Senior Academic staff in the four Colleges of Education that have Electrical Technology programme in South Western Nigeria. The study revealed that there is a skill mismatch between Colleges of Education in Nigeria and the labour market. Thus, the students lack the skills for 21st-Century jobs. The two results were integrated to come up with a Framework of employability for Electrical Technology students in Colleges of Education in Nigeria. The study observed that the framework developed was still broad and therefore recommends a valid discipline-difference employability skill framework using Rasch Analysis Model to determine the competencies and its hierarchy.