Skill Gaps in the Workplace: Measurement, Determinants and Impacts

Seamus McGuinness and Luis Ortiz ()
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Luis Ortiz: Universitat Pompeu Fabra

No 9278, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Optimal training decisions require employers to have accurate information about their workers' training needs. However, little is known with regard to the key factors determining the accurate transmission of worker training requirements. Using one of the few linked employer-employee surveys in the world, the 2006 Irish National Employment Survey, this paper identifies the key factors determining the correct identification of skill gaps within firms. The impact of skill gaps on average training expenditures and labour costs is also measured. The research finds that both HRM and collective bargaining arrangements are important factors in facilitating the accurate identification of skill gaps within firms. The analysis confirms that skill gaps are a key determinant of training expenditures and tend to raise average labour costs. Finally, the evidence suggests that employee perceptions of skill gaps may be prone to higher levels of subjective bias relative to those based on the employers' views.

Keywords: labour costs; subjective bias; skill gaps; training costs (search for similar items in EconPapers)
JEL-codes: J20 J24 J50 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2015-08
New Economics Papers: this item is included in nep-hrm and nep-lma
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Published - published in: Industrial Relations Journal, 2016, 47 (3), 253-278

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Related works:
Journal Article: Skill gaps in the workplace: measurement, determinants and impacts (2016)
Working Paper: Skill Gaps in the Workplace: Measurement, Determinants and Impacts (2015)
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