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Skills mismatch, productivity and policies: Evidence from the second wave of PIAAC

Author

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  • Müge Adalet McGowan

    (OECD)

  • Dan Andrews

    (OECD)

Abstract

This paper extends earlier OECD work exploring the link between skills mismatch, productivity and policies to include the countries in the second wave of OECD Survey of Adult Skills, with a special focus on New Zealand. We find that the percentage of workers who are mismatched in terms of skills is 28% in New Zealand, slightly over the OECD average of 25%. The share of over-skilling is at the OECD average of 18%, while the share of under-skilling - at around 10% - is also above the OECD average of 7%. The results suggest that improving the allocation of skills to OECD best practice could be associated with an increase in productivity of around 7% in New Zealand.

Suggested Citation

  • Müge Adalet McGowan & Dan Andrews, 2017. "Skills mismatch, productivity and policies: Evidence from the second wave of PIAAC," OECD Economics Department Working Papers 1403, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1403-en
    DOI: 10.1787/65dab7c6-en
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    Cited by:

    1. Tara Vanli, 2024. "Can systemic governance of smart cities catalyse urban sustainability?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23327-23384, September.
    2. Balázs Égert & Christine de la Maisonneuve & David Turner, 2024. "A new macroeconomic measure of human capital exploiting PISA and PIAAC: linking education policies to productivity," Education Economics, Taylor & Francis Journals, vol. 32(6), pages 745-761, November.
    3. Sandra Pérez Rodríguez & Rolf van der Velden & Tim Huijts & Babs Jacobs, 2024. "Identifying literacy and numeracy skill mismatch in OECD countries using the job analysis method," Oxford Economic Papers, Oxford University Press, vol. 76(3), pages 859-876.
    4. Galanakis, Yannis, 2020. "Female Human Capital Mismatch: An extension for the British public sector," GLO Discussion Paper Series 669, Global Labor Organization (GLO).
    5. Balazs Egert & Christine de la Maisonneuve & David Turner, 2022. "A New Macroeconomic Measure of Human Capital Exploiting PISA and PIAAC: Linking Education Policies to Productivity," CESifo Working Paper Series 9728, CESifo.

    More about this item

    Keywords

    education; framework policies; human capital; labour mobility; productivity; reallocation; skill mismatch;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - 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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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