Supporting European policies through innovative skill mismatch research

1. dr. Jasper van Loo September 2009 Decowe Conference, Ljubljana Supporting European policies through innovative skill mismatch research

2. Policy relevance of skill mismatch Improving monitoring, assessing and anticipating as well as the matching of skills is crucial to address both the employment impact of the crisis and the long-term job prospects of the EU workforce (NSNJ 2009) Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

3. Policy relevance of skill mismatch To confront rising unemployment matching of skills must be improved. Skills mismatches in the labour market have been a growing concern in most Member States (NSNJ 2009) Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

4. Policy relevance of skill mismatch Skills upgrading is critically important for Europe’s future; so too, especially today, is a better match between skills and labour market needs (NSNJ 2009) Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

5. Policy relevance of skill mismatch ensuring a better long-term matching between the supply of skills and labour market demands is just as necessary, for rising unemployment calls for a better monitoring and matching of skills with available jobs, particularly through the development of concrete tools for citizens (Council conclusions, 2009) Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

6. Policy relevance of skill mismatch [the council] invites the Member States and the Commission to develop the policies and services to address skills needs and labour market mismatches, including better information on skills needs in the EU in the medium and long term,… (Council conclusions, 2009) Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

7. Skill mismatch • Refers to various types of gaps or imbalances • Quantitative or qualitative • Not only in terms of qualifications • Impacts at multiple levels Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

8. Skill mismatch in Europe • Pervasive • Only 21% of workers hold jobs fitting their education, training and skills • 11% wage penalty • Stringent employment protection legislation and regulations/institutions Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

9. Skills and skill mismatch • More attention for skills • The problem of anchor points • Anchoring by required level allows assessment of skill mismatches Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

10. A vision for skill mismatch research • Considerable attention for skill mismatch in the literature • No clear links to insights needed to support policies aimed at preventing or counteracting skill mismatch • Cedefop’s research program on skill mismatch guided by 5 priorities Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

11. Five priorities for future research • improve measurement of skills and skill mismatch • examine the persistence of skill mismatch and its impacts • improve understanding of skill mismatch processes, dynamics and consequences • focus on skill mismatch for vulnerable groups on the labour market • improve data availability and use Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

12. improve measurement of skillsand skill mismatch • Problems in using attainment as skill proxy • Three conceptual problems in skill measurement and how to measure in practice • Horizontal and vertical • Methods to assess mismatch • Is there really a matching problem? Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

13. examine the persistence of skill mismatch and its impacts • Temporary/transitory or more permanent? • Most evidence relies on graduate studies • Adjustment mechanisms are insufficiently considered • How can policy address skill mismatch persistence? Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

14. improve understanding of skill mismatch processes, dynamics and consequences • How and how fast do skills become obsolete • Detailed studies on engineers are from 1970’s • Technical, economic and perspectivistic obsolescence • Going beyond wages in assessing skill mismatch impacts • Considering interdependencies and specifying the competences giving rise to mismatch Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

15. focus on skill mismatch for vulnerable groups on the labour market • Focusing on vulnarable groups is crucial • Young people entering the labour market • Ageing workers facing obsolescence • Migrants and ethnic minorities Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

16. improve data availability and use • Dynamic analysis of skill mismatch requires panel/longitudinal data • Options to gain insights in dynamics • Linking different levels of analysis and interactions • Improving data availability for vulnerable groups Innovative skill mismatch research Jasper van Loo Decowe Conference, Ljubljana September, 2008

17. Jasper van Loo Jasper.van-loo@cedefop.europa.eu www.cedefop.europa.eu Thank you for your attention