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A new measure of skill mismatch: theory and evidence from PIAAC

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  • Michele Pellizzari

    (University of Geneva)

  • Anne Fichen

    (University of Geneva)

Abstract

This paper proposes a new measure of skill mismatch to be applied to the recent OECD Survey of Adult Skills (PIAAC). The measure is derived from a formal theory and 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 permits the computation of the degree of under- and over-usage of skills in the economy. The empirical analysis is carried out using the first round of the PIAAC data, allowing comparisons across skill domains, labour market statuses and countries.

Suggested Citation

  • Michele Pellizzari & Anne Fichen, 2017. "A new measure of skill mismatch: theory and evidence from PIAAC," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-30, December.
    • Handle: RePEc:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-016-0051-y
    DOI: 10.1186/s40172-016-0051-y
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    Cited by:

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    2. Castro, Juan Francisco & Ortega, Lorena & Yamada, Gustavo & Mata, David, 2022. "The Magnitude and Predictors of Overeducation and Overskilling in Latin America: Evidence from PIAAC," IZA Discussion Papers 15143, Institute of Labor Economics (IZA).
    3. Mussida Chiara & Zanin Luca, 2019. "Voluntary Mobility of Employees for Better Job Opportunities Given a Temporary Contract: Insights Regarding an Age-Varying Association Between the Two Events," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-27, April.
    4. Dong-Hoon Shin & David Bills, 2021. "Trends in Educational and Skill Mismatch in the United States," Social Sciences, MDPI, vol. 10(10), pages 1-36, October.
    5. Brunello, Giorgio & Wruuck, Patricia, 2019. "Skill Shortages and Skill Mismatch in Europe: A Review of the Literature," IZA Discussion Papers 12346, Institute of Labor Economics (IZA).
    6. Florent Bordot & André Lorentz, 2021. "Automation and labor market polarization in an evolutionary model with heterogeneous workers," Working Papers of BETA 2021-39, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. Stephan Bischof, 2024. "Test-based measurement of skill mismatch: a validation of five different measurement approaches using the NEPS," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-17, December.
    8. Brunello, Giorgio & Wruuck, Patricia & Maurin, Laurent, 2019. "Skill shortages and skill mismatch in Europe: A review of the literature," EIB Working Papers 2019/05, European Investment Bank (EIB).
    9. Eric Schuss, 2020. "Do Ethnic Networks Ameliorate Education–Occupation Mismatch?," LABOUR, CEIS, vol. 34(4), pages 441-476, December.
    10. Yamada, Shoko, 2023. "Constructivist analysis of cross-sectional data on varieties of skills: Contextualities and generalities of skills packages and rewards to them in Ghana and Ethiopia," International Journal of Educational Development, Elsevier, vol. 102(C).
    11. Tien Ha Duong, My & Van Nguyen, Diep & Thanh Nguyen, Phong, 2019. "Using Fuzzy Approach to Model Skill Shortage in Vietnam’s Labor Market in the Context of Industry 4.0," MPRA Paper 103512, University Library of Munich, Germany, revised 07 May 2020.
    12. Ashley Pullman & Britta Gauly & Clemens M. Lechner, 2021. "Short-term earnings mobility in the Canadian and German context: the role of cognitive skills," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-19, December.
    13. Giorgio Brunello & Patricia Wruuck, 2021. "Skill shortages and skill mismatch: A review of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1145-1167, September.
    14. Muñoz de Bustillo, Rafael & Sarkar, Sudipa & Sebastián, Raquel & Antón, José-Ignacio, 2018. "Education mismatch in Europe at the turn of the century: Measurement, intensity and evolution," MPRA Paper 85779, University Library of Munich, Germany.

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    More about this item

    Keywords

    Mismatch; Skills;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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