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Skills mismatch, productivity and policies: Evidence from the second wave of PIAAC

Muge Adalet and Dan Andrews

No 1403, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper extends earlier OECD work exploring the link between skills mismatch, productivity and policies to include the countries in the second wave of OECD Survey of Adult Skills, with a special focus on New Zealand. We find that the percentage of workers who are mismatched in terms of skills is 28% in New Zealand, slightly over the OECD average of 25%. The share of over-skilling is at the OECD average of 18%, while the share of under-skilling - at around 10% - is also above the OECD average of 7%. The results suggest that improving the allocation of skills to OECD best practice could be associated with an increase in productivity of around 7% in New Zealand.

Keywords: education; framework policies; human capital; labour mobility; productivity; reallocation; skill mismatch (search for similar items in EconPapers)
JEL-codes: I20 J20 J24 J61 O40 (search for similar items in EconPapers)
Date: 2017-07-21
New Economics Papers: this item is included in nep-eff
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