Skill-Mismatch Unemployment Cause

A Skill-Mismatch Unemployment Cause is a structural unemployment cause based on a mismatch between unemployed worker skills and the vacant job skill requirements.

• Context:
  • It can be quantified by a Skill-Mismatch Unemployment Rate.
• Example(s):
  • the increased need for software programmers.
  • an Economic Recession, due to Organizations requiring fewer Workers.
  • …
• Counter-Example(s):
  • a Frictional Unemployment Cause.
  • a Depressed Economic Demand Unemployment Cause.
  • a Technological Unemployment Cause.
• See: Labor Participation Rate, Long-Term Unemployment.

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References

1999

• (Manacorda & Petrongolo, 1999) ⇒ Marco Manacorda, and Barbara Petrongolo. (1999). “Skill Mismatch and Unemployment in OECD Countries.” In: Economica, 66(262). doi:10.1111/1468-0335.00164
  • QUOTE: This paper uses evidence on employment, labour force and wage differentials by education from OECD countries to investigate the characteristics and the consequences of a skill-biased shift in the structure of labour demand and supply. The empirical analysis shows that there has been some increase in skill mismatch in a few OECD countries over the past two decades, but this has not been a generalized phenomenon. Moreover, the rise in mismatch cannot explain much of the rise in unemployment in continental Europe, while it does explain a significant proportion of the increase in the rate of joblessness in Britain.

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