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A new measure of skill mismatch: theory and evidence from PIAAC

Michele Pellizzari and Anne Fichen
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Anne Fichen: University of Geneva

IZA Journal of Labor Economics, 2017, vol. 6, issue 1, 1-30

Abstract: Abstract This paper proposes a new measure of skill mismatch to be applied to the recent OECD Survey of Adult Skills (PIAAC). The measure is derived from a formal theory and combines information about skill proficiency, self-reported mismatch and skill use. The theoretical foundations underling this measure allow identifying minimum and maximum skill requirements for each occupation and to classify workers into three groups: the well-matched, the under-skilled and the over-skilled. The availability of skill use data further permits the computation of the degree of under- and over-usage of skills in the economy. The empirical analysis is carried out using the first round of the PIAAC data, allowing comparisons across skill domains, labour market statuses and countries.

Keywords: Mismatch; Skills (search for similar items in EconPapers)
JEL-codes: J0 J20 J24 (search for similar items in EconPapers)
Date: 2017
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