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Test-based measurement of skill mismatch: a validation of five different measurement approaches using the NEPS

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  • Stephan Bischof

    (Federal Institute for Population Research
    Leibniz Institute for Educational Trajectories)

Abstract

Skill mismatch is a key indicator of labour market research that has received significant attention. To date, various approaches of test-based measurement of skill mismatch have been used in research, generating differing results. However, it remains unclear which method is the most valid for measuring skill mismatch. This study provides a comparative validation of five commonly used approaches to test-based measurement of skill mismatches in reading and mathematics to detect the most valid method. Drawing on the 2016 wave of the German National Educational Panel Study (NEPS) Adult Cohort, I find significantly varying distributions for the different measurement approaches, and highly valid skill mismatch measures for the statistical and the mixed approach. Overall, the mixed approach emerges as the most valid method. The findings highlight the critical importance of measurement approaches in skill mismatch research.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jlabrs:v:58:y:2024:i:1:d:10.1186_s12651-024-00370-1
    DOI: 10.1186/s12651-024-00370-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Skill mismatch; Measurement; Validation; Occupational skill requirements; Test-based skill mismatch; Statistical approach; Mixed approach; Job analysis approach; Worker assessment approach; Task approach;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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