Supporting European policies through innovative skill mismatch research

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Supporting European policies through innovative
skill mismatch research

• dr. Jasper van Loo
• September 2009
• Decowe Conference, Ljubljana

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Policy relevance of skill mismatch

• Improving monitoring, assessing and anticipating
  as well as the matching of skills is crucial to
  address both the employment impact of the crisis
  and the long-term job prospects of the EU
  workforce (NSNJ 2009)

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
3
Policy relevance of skill mismatch

• To confront rising unemployment matching of
  skills must be improved. Skills mismatches in the
  labour market have been a growing concern in most
  Member States (NSNJ 2009)

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
4
Policy relevance of skill mismatch

• Skills upgrading is critically important for
  Europes future so too, especially today, is a
  better match between skills and labour market
  needs (NSNJ 2009)

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
5
Policy relevance of skill mismatch

• ensuring a better long-term matching between the
  supply of skills and labour market demands is
  just as necessary, for rising unemployment calls
  for a better monitoring and matching of skills
  with available jobs, particularly through the
  development of concrete tools for citizens
  (Council conclusions, 2009)

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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Policy relevance of skill mismatch

• the council invites the Member States and the
  Commission to develop the policies and services
  to address skills needs and labour market
  mismatches, including better information on
  skills needs in the EU in the medium and long
  term, (Council conclusions, 2009)

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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Skill mismatch

• Refers to various types of gaps or imbalances
• Quantitative or qualitative
• Not only in terms of qualifications
• Impacts at multiple levels

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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Skill mismatch in Europe

• Pervasive
• Only 21 of workers hold jobs fitting their
  education, training and skills
• 11 wage penalty
• Stringent employment protection legislation and
  regulations/institutions

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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Skills and skill mismatch

• More attention for skills
• The problem of anchor points
• Anchoring by required level allows assessment of
  skill mismatches

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
10
A vision for skill mismatch research

• Considerable attention for skill mismatch in the
  literature
• No clear links to insights needed to support
  policies aimed at preventing or counteracting
  skill mismatch
• Cedefops research program on skill mismatch
  guided by 5 priorities

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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Five priorities for future research

• improve measurement of skills and skill mismatch
• examine the persistence of skill mismatch and its
  impacts
• improve understanding of skill mismatch
  processes, dynamics and consequences
• focus on skill mismatch for vulnerable groups on
  the labour market
• improve data availability and use

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
12
improve measurement of skillsand skill mismatch

• Problems in using attainment as skill proxy
• Three conceptual problems in skill measurement
  and how to measure in practice
• Horizontal and vertical
• Methods to assess mismatch
• Is there really a matching problem?

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
13
examine the persistence of skill mismatch and
its impacts

• Temporary/transitory or more permanent?
• Most evidence relies on graduate studies
• Adjustment mechanisms are insufficiently
  considered
• How can policy address skill mismatch persistence?

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
14
improve understanding of skill mismatch
processes, dynamics and consequences

• How and how fast do skills become obsolete
• Detailed studies on engineers are from 1970s
• Technical, economic and perspectivistic
  obsolescence
• Going beyond wages in assessing skill mismatch
  impacts
• Considering interdependencies and specifying the
  competences giving rise to mismatch

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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focus on skill mismatch for vulnerable groups on
the labour market

• Focusing on vulnarable groups is crucial
• Young people entering the labour market
• Ageing workers facing obsolescence
• Migrants and ethnic minorities

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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improve data availability and use

• Dynamic analysis of skill mismatch requires
  panel/longitudinal data
• Options to gain insights in dynamics
• Linking different levels of analysis and
  interactions
• Improving data availability for vulnerable groups

Innovative skill mismatch research
Jasper van Loo
Decowe Conference, Ljubljana
September, 2008
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Thank you for your attention

• Jasper van Loo
• Jasper.van-loo_at_cedefop.europa.eu
• www.cedefop.europa.eu