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oapen-20.500.12657-434002021-01-25T13:50:41Z EIB Working Papers 2019/05 - Skill shortages and skill mismatch in Europe Brunello, Giorgio Wruuck, Patricia European Investment Bank Business & Economics Finance General bic Book Industry Communication::K Economics, finance, business & management::KF Finance & accounting::KFF Finance Labour markets are 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. It questions: how the job requirements of individuals can be measured; whether skill shortages stated by employers reflect the lack of suitable candidates or are due instead to the wage and working conditions being offered; what economic costs are posed by skill mismatch and shortages; and how policy can address the issue of skills, including the role of EU policies. 2020-12-15T13:26:35Z 2020-12-15T13:26:35Z 2019 book 9789286142727 https://library.oapen.org/handle/20.500.12657/43400 eng application/pdf n/a external_content.pdf European Investment Bank European Investment Bank https://doi.org/10.2867/24044 https://doi.org/10.2867/24044 66479d04-7b84-49c0-9a4d-db552a3ecc71 b818ba9d-2dd9-4fd7-a364-7f305aef7ee9 9789286142727 Knowledge Unlatched (KU) European Investment Bank Knowledge Unlatched open access
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Labour markets are 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. It questions:
how the job requirements of individuals can be measured;
whether skill shortages stated by employers reflect the lack of suitable candidates or are due instead to the wage and working conditions being offered;
what economic costs are posed by skill mismatch and shortages; and
how policy can address the issue of skills, including the role of EU policies.
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