Working Paper: CEPR ID: DP10280
Authors: Anne Fichen; Michele Pellizzari
Abstract: This paper proposes a new measure of skills mismatch that combines information about skill proficiency, self-reported mismatch and skill use. The theoretical foundations underling this measure allow identifying minimum and maximum skill requirements for each occupation and to classify workers into three groups, the well-matched, the under-skilled and the over-skilled. The availability of skill use data further permit the computation of the degree of under and over-usage of skills in the economy. The empirical analysis is carried out using the first wave of the OECD Survey of Adult Skills (PIAAC), allowing comparisons across skill domains, labor market statuses and countries.
Keywords: mismatch; skills
JEL Codes: J0; J20; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| skill proficiency (J24) | job performance (M51) |
| being underskilled (J24) | lower productivity (O49) |
| overskilled workers (J24) | underutilization of competencies (D29) |
| overskilled workers (J24) | reduced productivity (O49) |
| skill mismatch (J24) | labor market outcomes (J48) |