A new approach to skills mismatch
Skills mismatch - the sub-optimal use of an individual's skills in their occupation
- can be a source of dissatisfaction for workers and a brake for productivity growth.
In our view, a difference in the level of skills within an occupation is not sufficient
to infer that a skills mismatch exists. Since skills-mismatch is the result of a disparity
between the supply and demand of labour, the quantifying of skills-mismatch must therefore
be based on the mechanisms involved in this disparity. We propose to include in our
measurement the level of education and field of study, which are key markers of an
individual's skill level in the labour market. This makes it possible to identify,
among individuals whose skill level differs from others within an occupation, those
whose training profile can (or cannot) explain this situation. Through using the OECD
PIAAC 2012 survey, this paper first identifies with data for France, individuals who
present an apparent skills mismatch according to the framework proposed. Following
an international comparison of “apparent skills mismatch rates”, we conclude this
study by observing how the different groups identified differ in terms of how they
perceive their employment situation as well as their individual characteristics.
Published on July 08, 2021
In series:OECD Productivity Working Papersview more titles