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    EIB Working Papers 2019/05 - Skill shortages and skill mismatch in Europe

    A review of the literature (Volume 2019/5)

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    Author(s)
    Brunello, Giorgio
    Wruuck, Patricia
    Contributor(s)
    European Investment Bank (editor)
    Collection
    Knowledge Unlatched (KU)
    Language
    English
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    Abstract
    Labour markets are undergoing structural transformation due to globalisation, demographic trends, advancing digital technologies and automation and changes in labour market institutions. Against this background, businesses increasingly report that the limited availability of skills poses an impediment to corporate investment. Genuine skill constraints can negatively affect labour productivity and hamper the ability to innovate and adopt technological developments. For individual Europeans, not having “the right skills” limits employability prospects and access to quality jobs. For Europe at large, persistent skill gaps and mismatches come at economic and social costs. This paper reviews the recent economic literature on skill mismatch and skill shortages, with a focus on Europe. It questions: how the job requirements of individuals can be measured; whether skill shortages stated by employers reflect the lack of suitable candidates or are due instead to the wage and working conditions being offered; what economic costs are posed by skill mismatch and shortages; and how policy can address the issue of skills, including the role of EU policies.
    URI
    https://library.oapen.org/handle/20.500.12657/43400
    Keywords
    Business & Economics; Finance; General
    DOI
    https://doi.org/10.2867/24044
    ISBN
    9789286142727
    Publisher
    European Investment Bank
    Publisher website
    https://www.eib.org/en/publications/index.htm
    Publication date and place
    2019
    Grantor
    • Knowledge Unlatched
    Imprint
    European Investment Bank
    Classification
    Finance and the finance industry
    Rights
    https://creativecommons.org/licenses/by-nc-nd/4.0/legalcode
    • Harvested from KU

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    License

    • If not noted otherwise all contents are available under Attribution 4.0 International (CC BY 4.0)

    Credits

    • logo EU
    • This project received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement No 683680, 810640, 871069 and 964352.

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