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Using Esco in skills demand and skills mismatch research

Using Esco in skills demand and skills mismatch research. Robert Pater. Horizontal Educational Mismatch : a new method of measurement with application to Poland. Motivation and goals of the project Measurement framework and the role of ESCO Online job offers and text analysis

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Using Esco in skills demand and skills mismatch research

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  1. Using Escoin skillsdemandand skillsmismatchresearch Robert Pater

  2. HorizontalEducationalMismatch:a newmethod of measurement with application to Poland • Motivation and goals of the project • Measurementframework and the role of ESCO • Online joboffers and textanalysis • Results

  3. Project objectives • Analysefirms’ demand for: occupations, qualifications,and skills/competence, that occur in vacancies by analysis of online job offers, their detailed structure and changes in time • Analyse labour supply according to their occupation, qualifications, andskills/competencesand other characteristics • Investigate horizontal educational mismatch between potential job seekers and employers offering work

  4. Project objectives • Assessthe institutional background of the educational mismatch and make policy recommendations • Proposea method of continuous monitoring of skillsdemand and educational mismatch; formulatepolicy recommendations for labour market and educationinstitutions as to the measurement of the laboursupplytraits (e.g. skills)

  5. Hypotheses • Online job offers can provide detailed structural information about firms’ demand for new workers • Qualificationsand competences help better measure horizontal educational mismatch than occupations and skills • Structuralunemployment in Poland is to the highest extent connected to the field of education and competence mismatch • Choiceof educational pathway in Poland is not well motivated, and leads to educational mismatch

  6. Importance of vacancies Part of the demand for labour, which includes non-employed workersThe measure of unmetdemand A labour market leadingindicatorVariable in search and matching models / mismatchesindices Difficulties in employing / measure of structural unemploymentMeasure of the specific structure of demand for labour: across skills / competences, qualifications, occupations

  7. motivation • Thereare not manyresearch on the vacancy market, and theirresultsheavilydepend on the definition of a vacancy • Representativesurveys on the vacancy market lack details, such as informationaboutskills • Althoughonline job offers can be asupportfor surveys as a data source on vacancy market, the literature lacks methods and analyses of the contents of job offers • Growingneed for disagregateanalysis on the labour market, likeskills, especiallyskillsdemand

  8. Relatedresearch • Chevalier (2011) shows that the gap in mean salaries between studied fields is smaller than within them • Boudarbat and Chernoff (2012) show that good university grades (as a proxy of work-related competences) decrease horizontal mismatch • Sgobbi and Suleman (2013) argue that general measures of mismatch cannot fully capture the multi-dimensional and job specific nature of skill mismatch • Hershbein and Kahn (2017) suggestlooking at the skill requirements in job offersto document the evolution in skill requirements for this occupation over time

  9. Methods of previousresearch • Horizontaleducationalmismatch isusuallycomputed using subjective measures • Hard to obtaincontinuous information on the demand, and the supply of workers’ skills or, more generally, competences and qualifications • Previous online joboffersanalysesusedsubjectiveclassifications, e.g. most frequentkeywords (Deming and Kahn 2017), job title (Marinescu and Wolthoff 2016) • On a very detailed scale (individual skillsorcompetences) firms’ demand and mismatch hasbeenmeasured only from microeconomic perspective (Winterton et al. 2006, Modestino et al. 2016)

  10. GenericSkillsclassifications • General groupings: KSAO, Spencer and Spencer (1993), Winterton et al. (2006), United Nations Industrial Development Organization (2002) • PIAAC and PISA: not for demand • ISCO-08: proxy of skillslevels • O*Net: six categories, coveringbetween one and 11 skills (35 skills) https://www.onetonline.org/find/descriptor/browse/Skills/ • Human Capital Study: 11 categories … but whichsocialskillsareimporant?

  11. Ourframework • ISCO-08 classification of occupations;testingrepresentativeness • International Standard Classification of Education. Fields of Education and Training ISCED-F 2013, which classifies education horizontallycomparinglabour market and education • Adetailed ESCO European Commission typology of skills/competencesdictionary of skills, detaileddescriptiondemand and supply • Linkingclassificationsdescribe a joboffer from alleducationaldimensions

  12. Gatheringjoboffers • At first, at the end of a month, thanks to a computer script • Now, joboffertitles „continuously”, jobofferstexts as many as possible • Joboffers are downloaded and saved on a server in HTML format • The data were converted into plain text (parsing) • We eliminatevery „similar” joboffersbetweenportals

  13. Analysingjoboffers • Lemmatization of the offer text to the basic form using Morfologik-stemming-1.9.0 • Dictionaries for search (skills/competences, qualifications, occupations) and their groups with synonyms and exceptions, also lemmatized; important proper selection of classification – in some cases, few alternatives • Polish and English dictionary

  14. Job offerexample

  15. Representativeness

  16. Fastest developing branches • Construction (36) • Transportationand logistics (6-10) • Production (4-5, 18-20, 25 and 28-33) • Printing, photographyand advertising (13) • Engineering (34 and 38) • Artistic and audio-visual (2 and 3) • Protection and security of persons and property and installation (23 and 35) • Economyand administration(11)

  17. transversal skillsper job offer

  18. Most demandedtransversalskills

  19. Correlationbetweenskilltrends

  20. Escorole • Detailedclassification (as detailed as companiesneed) • Linkingalldimensions of education (comparinglabour market and educationparticipants) • Officialclassification (can be merged with other data sources) • Can be usedunconditionally to alltypes of jobs • Can, will, and shouldchange! We can monitor the development of occupations, theirqualificationalrequirements and skillstheyuse

  21. Application • Forecasting the business cycle • Measuringstructuralchange • OECD SkillsStrategy • NationalQualificationsStrategy • Supportinglabour market institutions • Media: Barometr Ofert Pracy

  22. Thankyou Presenter: Robert Pater Institution: Wyższa Szkoła Informatyki i Zarządzania w Rzeszowie Instytut Badań Edukacyjnych w Warszawie e-mail: rpater@wsiz.rzeszow.pl r.pater@ibe.edu.pl

  23. REFERENces • Boudarbat, B., & Chernoff, V. (2012). Education–job match among recent Canadian university graduates. Applied Economics Letters ,19(18), 1923–1926, doi:10.1080/13504851.2012.676730. • Chevalier, A. (2011). Subject Choice and Earnings of UK Graduates. Economics of Education Review, 30(6), 1187–1201. • Deming, D., & Kahn, L. (2017). Skill requirements across firms and labor markets: evidence from job postings for professionals. NBER Working Paper 23328. http://www.nber.org/papers/w23328. Accessed 20 June 2018. • Hershbein, B., & Kahn, L. (2017). Do recessions accelerate routine-biased technological change? Evidence from vacancy posting. Employment Research, 24(4), 1-4. • Marinescu, I., & Wolthoff, R. (2016). Opening the Black Box of the Matching Function: the Power of Words. NBER Working Paper 22508. http://www.nber.org/papers/w22508.pdf. Accessed 20 June 2018. • Modestino, A., Shoag, D., & Ballance, J. (2016). Downskilling: Changes in Employer Skill Requirements Over the Business Cycle. Labour Economics, 41, 333–347. • Sgobbi, F., Suleman, F. (2013). A Methodological Contribution to Measuring Skill (Mis)Match. The Manchester School, 81(3), 420–39. • Spencer, L. M., Spencer, S. M. (1993). Competence at Work. Models for Superior Performance. New York: John Wiley & Sons. • United Nations Industrial Development Organization (2002). Competencies. Part 1.Vienna: United Nations Industrial Development Organization. https://www.unido.org/fileadmin/media/documents/pdf/Employment/UNIDO-CompetencyModel-Part1.pdf. Accessed 20 June 2018. • Winterton, J., Delamare Le Deist, F., & Stringfellow, E. (2006). Typology of knowledge, skills and competences: clarification of the concept and prototype. Cedefop Reference Series 64. Luxembourg: Office for Official Publications of the European Communities. http://www.cedefop.europa.eu/en/publications-and-resources/publications/3048. Accessed 20 June 2018.

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