1 / 1

Structural Unemployment in Croatia How Important is the Occupational Mismatch?

Structural Unemployment in Croatia How Important is the Occupational Mismatch?. Iva Tomić The Institute of Economics, Zagreb & Faculty of Economics, University of Ljubljana. These 9 occupations are grouped into 2 main categories: white-collar occupations (1-4):

marcel
Download Presentation

Structural Unemployment in Croatia How Important is the Occupational Mismatch?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Structural Unemployment in CroatiaHow Important is the Occupational Mismatch? Iva Tomić The Institute of Economics, Zagreb & Faculty of Economics, University ofLjubljana • These 9 occupations are grouped into 2 main categories: • white-collar occupations (1-4): • highly-skilled white-collar occupations (1-2); • skilled white-collar occupations (3-4); • blue-collar occupations (5-9) • semi-skilled blue-collar occupations (5-7); • lower-skilled blue-collar occupations (8-9); • Occupational imbalance (mismatch) is measured relative to the existing aggregate levels of unemployment and vacancies in the economy; • occupations represents separate submarkets in the overall labour market. • Background • In order to completely utilize the stock of human capital in the population it is essential to match individuals’ education-specific skills with the occupational job characteristics(Nordin et al., 2010). • Both the efficiency of the matching process and mismatch may be important determinants of the level of unemploymentin the economy(Dur, 1999). • Labourmarket mismatch (structural imbalance): • inadequate education and training or • insufficient geographical andoccupationallabour mobility. • In (most) transition countries: • mismatch is the result of significant changes during the 1990ies in the structure of product markets, which have led to changes in the structure of labour demand(Obadić, 2004); • low mobilityacross different occupations, industries and locations(Boeri, 2000); • skill shortages as a key impediment to faster labour reallocation and convergence to the EU-15 employment structures(Brixiova et al., 2009). • Methodology • Besides the aggregate function, the study estimates the disaggregated matching functions based on the grouping of (similar) occupations; • Matching functions explicitly incorporate mismatchindex (based on Dur, 1999) for different submarkets (occupations). • the importance of mismatch on the level of U depends on the distribution of both U and V over submarkets (occupations), but also on the size of the particular submarket. • Aim • To what extent can the existing level of unemployment (jn Croatia) be attributed to structural (occupational) mismatch or by how much would unemployment fall were structural balance to be achieved? • Summaryoftheresults • the impact of occupational mismatch on the matching process is insignificanton the aggregate level; • however, it affects (negatively) the matching process when labour market is examined through its submarkets; • share of the unemployment benefits users in total unemployment has negative impact on the matching process, while time trendaffects it positively; • in most of the cases the hypothesis of CRS cannot be rejected. • the portion of total unemployment that can be attributed to occupational mismatch is estimated to be only up to 6%, which evidently cannot explain high and persistent unemployment in Croatia; • in different submarketsthisfraction is even smaller (except for the white-collars). • Data • Monthly data from CES in the period from January 2004 until December 2011: • the number of registered unemployed persons (U), • the number of reported vacancies (V), and • the number of employed persons from the Service registry (M). • To be able to detect the existence of mismatch in the labour market, all variables are divided according to the 9 broad occupational groups: • Legislators, senior officials and managers; • Professionals; • Technicians and associate professionals; • Clerks; • Service and shop and market sales workers; • Skilled agricultural and fishery workers; • Craft and related trades workers; • Plant and machine operators and assemblers; • Elementary occupations. Results Contact The Institute of Economics, ZagrebTrg J. F. Kennedyja 710000 Zagreb, Croatia Ph: +385-1-2362-244Email: itomic@eizg.hrWeb: http://www.eizg.hr 24th annual EALE Conference, Bonn – Germany, September 20-22, 2012

More Related