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Labour Market Tightness and Matching Efficiency in Different Labour Market Segments – Do Differences in Education Matter?

Author

Listed:
  • Obadić Alka

    (PhD, Full Professor in Tenure, Faculty of Economics & Business Zagreb, University of Zagreb, Sq. J. F. Kennedy 6, 10000 Zagreb, Country: Croatia)

  • Viljevac Viktor

    (mr. sc., Research and teaching assistant, Faculty of Economics & Business Zagreb, University of Zagreb, Country: Croatia)

Abstract

This paper analyses the existing educational structures of selected EU member countries and their alignment with the labour market (LM) needs. This study aims to identify potential structural mismatches between the skills taught in schools and universities and the skills and knowledge required in the workplace. To evaluate this educational mismatch, the paper explores the matching needs of employers and unemployed job seekers by using disaggregated national employment office data. The paper examines the selected group of EU countries (AT, HR, EE, SI, ES) from 2010 to 2022, using the Beveridge curves and estimating LM tightness and matching efficiency for different education groups. The results show that differences in education levels result in relatively small deviations from aggregate trends in the LM. Aggregate LM trends strongly impact all education groups in the labour market.

Suggested Citation

  • Obadić Alka & Viljevac Viktor, 2024. "Labour Market Tightness and Matching Efficiency in Different Labour Market Segments – Do Differences in Education Matter?," South East European Journal of Economics and Business, Sciendo, vol. 19(1), pages 1-17.
    • Handle: RePEc:vrs:seejeb:v:19:y:2024:i:1:p:1-17:n:1001
    DOI: 10.2478/jeb-2024-0001
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    References listed on IDEAS

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    1. Regis Barnichon & Andrew Figura, 2015. "Labor Market Heterogeneity and the Aggregate Matching Function," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 222-249, October.
    2. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Brent H. Meyer, 2021. "COVID-19 Is a Persistent Reallocation Shock," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 287-291, May.
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    4. Consolo, Agostino & Da Silva, António Dias, 2019. "The euro area labour market through the lens of the Beveridge curve," Economic Bulletin Articles, European Central Bank, vol. 4.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    structural unemployment; Beveridge curve; matching efficiency; labour market tightness; EU countries;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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