New Technologies, Digital Skills, and Occupational Mobility: Evidence from Ireland

Anil Yadav, John McHale and Jefferson RB Galetti
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Anil Yadav: Central Bank of Ireland
Jefferson RB Galetti: University of Galway, Ireland

No 04/RT/26, Research Technical Papers from Central Bank of Ireland

Abstract: This paper examines how skill mismatch, particularly in digital skills, constrains occupational mobility. Using worker transition data from the Irish Labour Force Survey and skill vectors from the ESCO database, we construct occupation-level mismatch measures and estimate their effect on worker flows in a framework combining matching and gravity models. Greater skill mismatch significantly reduces occupational mobility, with stronger constraints on transitions between digitally intensive occupations. We also document substantial heterogeneity in bilateral mobility costs and show that occupations that are easier to enter are harder to exit, creating bottlenecks. These findings highlight the importance of retraining policies, especially those supporting digital skill acquisition, to improve labour market adaptability

Keywords: Occupational Mobility; Skill mismatch; Tasks; Mobility costs. (search for similar items in EconPapers)
JEL-codes: J24 J62 (search for similar items in EconPapers)
Date: 2026-03
New Economics Papers: this item is included in nep-lma and nep-tid
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