Rethinking Under-Skilling in Europe ^☆

Abstract

This paper investigates the prevalence and distribution of under-skilling across Europe. First, in order to understand why under-skilling occurs, three main theoretical approaches are discussed: (a) Inefficient signaling, (b) Skill shortages, and (c) On-the-job training substitution. Second, in order to measure the real dimension of the problem, we use the Cedefop European Skills and Jobs Survey (ESJS) ¹ to assess whether workers’ skills were lower than required at the point they started their job. Our results are rather mixed. First, we find under-skilling being related to some academic fields such as Health & Medicine, and Engineering. Second, we find that under-skilling is more prevalent among, not surprisingly, young workers but, rather unexpectedly, among permanent workers working in high-skilled occupations.

Citation

Livanos, I. and Núñez, I. (2017), "Rethinking Under-Skilling in Europe ^☆ ", Skill Mismatch in Labor Markets (Research in Labor Economics, Vol. 45), Emerald Publishing Limited, Leeds, pp. 279-304. https://doi.org/10.1108/S0147-912120170000045008