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Skill Shortages and Skill Mismatch in Europe: A Review of the Literature

Author

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  • Brunello, Giorgio

    (University of Padova)

  • Wruuck, Patricia

    (European Investment Bank)

Abstract

Labour markets are currently in a phase of cyclical recovery and undergoing structural transformation due to globalisation, demographic trends, advancing digital technologies and automation and changes in labour market institutions. Against this background, businesses increasingly report that the limited availability of skills poses an impediment to corporate investment. Genuine skill constraints can negatively affect labour productivity and hamper the ability to innovate and adopt technological developments. For individual Europeans, not having "the right skills" limits employability prospects and access to quality jobs. For Europe at large, persistent skill gaps and mismatches come at economic and social costs. This paper reviews the recent economic literature on skill mismatch and skill shortages with a focus on Europe a focus on Europe.

Suggested Citation

  • 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).
    • Handle: RePEc:iza:izadps:dp12346
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    References listed on IDEAS

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    3. Corrales‑Herrero, Helena & Rodriguez-Prado, Beatriz, 2022. "Mapping the Occupations of Recent Graduates. The Role of Academic Background in the Digital Era," MPRA Paper 123226, University Library of Munich, Germany, revised 06 Aug 2024.
    4. 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.
    5. Nik Dawson & Marian-Andrei Rizoiu & Benjamin Johnston & Mary-Anne Williams, 2020. "Predicting Skill Shortages in Labor Markets: A Machine Learning Approach," Papers 2004.01311, arXiv.org, revised Aug 2020.
    6. Judit Albiol-Sánchez & Luis Diaz-Serrano & Mercedes Teruel, 2021. "The Transition to Self-Employment and Perceived Skill-Mismatches: Panel Data Evidence from Eleven EU Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 957-977, February.
    7. Andrew Weaver, 2021. "Hiring Frictions in a Regulated Occupation: Evidence from US Laboratories," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 899-927, September.
    8. Badura, Ondřej & Melecký, Aleš & Melecký, Martin, 2023. "Liberalizing passenger rail: The effect of competition on local unemployment," Economics of Transportation, Elsevier, vol. 36(C).
    9. Ellen Hazelkorn & John Edwards, 2019. "Skills and Smart Specialisation: The role of Vocational Education and Training in Smart Specialisation Strategies," JRC Research Reports JRC118229, Joint Research Centre.
    10. Sun, Ting & Bian, Xuezi & Liu, Jianxu & Wang, Rui & Sriboonchitta, Songsak, 2023. "The economic and social effects of skill mismatch in China: A DSGE model with skill and firm heterogeneity," Economic Modelling, Elsevier, vol. 125(C).
    11. Högberg, Björn, 2021. "Educational stressors and secular trends in school stress and mental health problems in adolescents," Social Science & Medicine, Elsevier, vol. 270(C).
    12. Helena Corrales-Herrero & Beatriz Rodríguez-Prado, 2024. "Mapping the Occupations of Recent Graduates. The Role of Academic Background in the Digital Era," Research in Higher Education, Springer;Association for Institutional Research, vol. 65(8), pages 1853-1882, December.
    13. Debelak, Katja & Penger, Sandra & Grah, Barbara, 2022. "Leadership in an Ageing Society and the Brain: Applying Neuroscience to Leadership," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2022), Hybrid Conference, Opatija, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Opatija, Croatia, 17-18 June 2022, pages 64-79, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
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    More about this item

    Keywords

    Europe; mismatch; shortages; skill;
    All these keywords.

    JEL classification:

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

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