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Article
Publication date: 3 October 2023

Emilio Colombo and Alberto Marcato

The authors provide a novel interpretation of the relationship between skill demand and labour market concentration based on the training rationale.

Abstract

Purpose

The authors provide a novel interpretation of the relationship between skill demand and labour market concentration based on the training rationale.

Design/methodology/approach

The authors use a novel data set on Italian online job vacancies during 2013–2018 to analyse the relationship between labour market concentration and employers' skill demand. The authors construct measures of market concentration and skill intensity in the local labour market. The authors regress the measures of skill demand on market concentration, controlling for sector, occupations and other features of the labour market. The authors also use the Hausman–Nevo instrument for market concentration.

Findings

The authors show that employers in a highly concentrated labour market demand competencies associated with the ability of workers to learn faster (e.g. social skills) rather than actual knowledge. They also require less experience but higher education. These results are consistent with the hypothesis that employers in more concentrated labour markets are more prone to train their employees. Instead of looking for workers who already have job-specific skills, they look for workers who can acquire them faster and efficiently. The authors provide a theoretical framework within which to analyse these aspects as well as providing a test for the relevant hypotheses.

Practical implications

In addition to cross-countries differences in labour market regulations, the authors' findings suggest that policy authorities should consider the local labour market structure when studying workforce development programmes aimed at bridging the skill gap of displaced workers. Moreover, the authors show that market concentration can have relevant implications for human resource (HR) managers by affecting their recruitment behaviour through the demand for skills. In fact, concentrated markets tend to favour firms' collusion and anti-competitive behaviour that could strongly affect HR management practices.

Originality/value

The authors' paper innovates on the literature in a number of ways. First, the authors provide evidence of local labour market concentration in Italy. Second, the authors provide evidence of skill demand at the local level using a detailed skill taxonomy that goes beyond the classical distinction between high and low skills. Third, and most importantly, the authors provide evidence of the relationship between skill demand and labour market concentration. By analysing detailed skills and competencies, the authors take one step beyond understanding the features of labour demand in monopsonistic markets.

Details

International Journal of Manpower, vol. 44 no. 9
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 8 May 2017

Paulo de Andrade Jacinto, Eduardo Pontual Ribeiro and Tulio Cravo

The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology…

Abstract

Purpose

The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology output growth and skill-biased technical change.

Design/methodology/approach

This study relies on a rich and unique matched employer-employee data set for manufacturing sector, from 1996 to 2003. The analysis considers a translog functional form labor demand system estimated using seemingly unrelated regression and instrumental variables to control for possible measurement errors and wages and output endogeneity.

Findings

The demand function estimates suggest that: labor demand underlying technology is non-homothetic, research and development investment is biased toward skilled workers, the non-homothetic technology is not skill biased so output changes contributed positively for skilled labor increase, relative wages played a significant role and international trade has little explanatory power explaining labor demand shifts.

Originality/value

This is the first paper that considers alternative explanations for the increase in the demand of skilled workers for manufacturing in Brazil simultaneously: changes in relative wages, output changes with non-homothetic technology, skill-biased technical change and, to a lesser extent, international trade. The study challenges current empirical evidence that considers trade and trade liberalization as the main factor explaining labor demand shifts.

Details

Journal of Economic Studies, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 22 March 2019

Ugochukwu Chinonso Okolie, Hyginus Emeka Nwosu and Sunday Mlanga

Following the outcry of several employers that many higher education (HE) graduates do not possess employability skills and therefore are not employable, the purpose of this…

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Abstract

Purpose

Following the outcry of several employers that many higher education (HE) graduates do not possess employability skills and therefore are not employable, the purpose of this paper, therefore, is to examine what the labour market (LM) actually demands from the higher education institutions (HEIs) and how the demands of the LM can be met by the HEIs in Nigeria.

Design/methodology/approach

The study is based on interviews and focus group with 28 university professors, executives of the students’ industrial work scheme (SIWES), industry executives, executive officers of the Directorate of Employment and the HE course/programme leaders that revealed substantial information about what the LM actually requires from the HE, and how the HE can meet the demands of the LM in terms of supply of quality graduates.

Findings

The key findings reveal that with adequate teaching resources and competent teachers, graduate employability skills (technical and soft), which the LM demands from the HEIs, can be imparted to the students. Concerning LM and HEIs partnerships, it is found that understanding the demands of the LM by the HEIs can enhance the graduates’ outcomes and their prospects in the LM.

Research limitations/implications

The study argues that the graduate employability is still relevant to the existing practice, but further engagement and research surrounding how the HEIs in the developing countries, especially Nigeria, can meet the actual demands of the LM in terms of competent graduates are needed to examine this range of HE.

Originality/value

The study provides significant suggestions on the improvement needs of the HE teachers to inspire and motivate students to increase the knowledge (know-how), skills (how to do), self-efficacy (effectiveness) and qualities (technical and creative knowledge) required by the LM.

Details

Higher Education, Skills and Work-Based Learning, vol. 9 no. 4
Type: Research Article
ISSN: 2042-3896

Keywords

Article
Publication date: 17 March 2012

Faheem Ahmed, Luiz Fernando Capretz, Salah Bouktif and Piers Campbell

Most of the studies carried out on human factor in software development concentrate primarily on personality traits. However, soft skills which largely help in determining…

1957

Abstract

Purpose

Most of the studies carried out on human factor in software development concentrate primarily on personality traits. However, soft skills which largely help in determining personality traits have been given comparatively little attention by researchers. The purpose of this paper is to find out whether employers' soft skills requirements, as advertised in job postings, within different roles of software development, are similar across different cultures.

Design/methodology/approach

The authors review the literature relating to soft skills before describing a study based on 500 job advertisements posted on well‐known recruitment sites from a range of geographical locations, including North America, Europe, Asia and Australia. The study makes use of nine defined soft skills to assess the level of demand for each of these skills related to individual job roles within the software industry.

Findings

It was found that in the cases of designer, programmer and tester, substantial similarity exists for the requirements of soft skills, whereas only in the case of system analyst is dissimilarity present across different cultures. It was concluded that cultural difference does not have a major impact on the choice of soft skills requirements in hiring new employee in the case of the software development profession.

Originality/value

Specific studies concerning soft skills and software development have been sporadic and often incidental, which highlights the originality of this work. Moreover, no concrete work has been reported in the area of soft skills and their demand as a part of job requirement sets in diverse cultures, which increases the value of this paper.

Article
Publication date: 13 November 2017

Khotso Tsotsotso, Elizabeth Montshiwa, Precious Tirivanhu, Tebogo Fish, Siyabonga Sibiya, Tshepo Mlangeni, Matsemela Moloi and Nhlanlha Mahlangu

The purpose of this paper is to improve the understanding of the drivers and determinants of skills demand in South Africa, given the country’s history and its current design as a…

Abstract

Purpose

The purpose of this paper is to improve the understanding of the drivers and determinants of skills demand in South Africa, given the country’s history and its current design as a developmental state.

Design/methodology/approach

In this study, a mixed methods approach is used. The study draws information from in-depth interviews with transport sector stakeholders including employers, professional bodies, sector regulatory bodies and training providers. Complementary to the interviews, the study also analyses employer-reported workplace skills plans from 1,094 transport sector firms updated annually. A Heckman correction model is applied.

Findings

The study finds that changes in competition, technology, ageing employees, market conditions and government regulations are among the most frequently stated determinants reported through interviews. Using a Heckman regression model, the study identifies eight determining factors, which include location of firm, size of a firm, occupation type, racial and generational transformation, subsector of the firm, skills alignment to National Qualification Framework, reason for skills scarcity and level of skills scarcity reported. The South African transport sector skills demand is therefore mainly driven by the country’s history and consequently its current socio-economic policies as applied by the state itself.

Research limitations/implications

Wage rates are explored during stakeholder interviews and the study suggests that wage rates are an insignificant determinant of skills demand in the South African transport sector. However, due to poor reporting by firms, wage rates did not form a part of the quantitative analysis of the study. This serves as a limitation of the study.

Practical implications

Through this research, it is now clear that the state has more determining power (influence) in the transport sector than it was perceived. The state can use its power to be a more effective enabler towards increasing employer participation in skills development of the sector.

Social implications

With increased understanding and awareness of state’s influence in the sector, the country’s mission to redress the social ills of the former state on black South Africans stands a better chance of success. Private sector resources can be effectively mobilized to improve the social state of previously disadvantaged South Africans. However, given the economic dominance of the private sector and its former role in the apartheid era in South Africa; too much state influence in a supposedly free market can result in corporate resistance and consequently, market failure which can be seen as result of political interference.

Originality/value

South Africa has had an unprecedented social and economic trajectory to date. This said, its economic and social policies are unlike what we have observed before. Thus, identification of determinants and understanding of mechanisms of influence, on skills demand in the sector in which an African state plays such a close and active role, is in itself a unique contribution to knowledge and compels us to revisit our traditional assumptions about market behaviour. This study is one of the very few of its kind in the labour market research with a South African context.

Details

Higher Education, Skills and Work-Based Learning, vol. 7 no. 4
Type: Research Article
ISSN: 2042-3896

Keywords

Article
Publication date: 7 March 2016

Miroslav Beblavý, Lucia Mýtna Kureková and Corina Haita

The purpose of this paper is to learn more about demand for competences is crucial for revealing the complex relationship between employee selection, different strands of…

Abstract

Purpose

The purpose of this paper is to learn more about demand for competences is crucial for revealing the complex relationship between employee selection, different strands of education and training and labor market regulation.

Design/methodology/approach

Content analysis and statistics of job advertisements.

Findings

Employer skills requirements even for low- and medium-skilled jobs are highly specific. Formal education requirements are higher than they “should” be. No detectable “basic package” of general cognitive skills for low- and medium-skilled jobs was found. Employer demand focusses on non-cognitive skills and specific cognitive skills. Specificity of skill requirement across different sectors or occupation groups differs vastly between different types of low- and medium-skilled jobs and is linked to the interactive nature of the job, not to the qualifications or the experience required.

Research limitations/implications

The analysis can be considered an initial feasibility test for a larger comparative cross-country project that would aim to understand labor demand in different EU countries.

Practical implications

The analysis could be used as input in designing labor market policy and life-long learning programs to integrate low-skilled and unemployed.

Social implications

The research provides a tool to match disadvantaged workers to jobs for which they possess greater capabilities or to help them develop crucial skills for a given occupation.

Originality/value

This paper contributes to the HRM literature with a more demand-led approach to labor market policy. The authors reveal what role skills and upskilling can play in alleviating the problem of unemployment. The results can be useful for HR specialists and policy makers.

Details

Personnel Review, vol. 45 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 11 June 2013

Harri Lorentz, Juuso Töyli, Tomi Solakivi and Lauri Ojala

The purpose of this paper is to find out the current SCM skill development priorities in manufacturing firms and how the structural properties of the supply chain translate into…

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Abstract

Purpose

The purpose of this paper is to find out the current SCM skill development priorities in manufacturing firms and how the structural properties of the supply chain translate into demand for SCM skills in manufacturing firms.

Design/methodology/approach

An internet survey was designed and conducted. The responses of 154 manufacturing companies operating in Finland were analysed through descriptive statistics and regression analyses.

Findings

The supply chain management skills with an inter‐organisational focus tend to have a higher development priority than the skills with an intra‐organisational focus. The top five skills for development are: demand forecasting and supply planning; sourcing and supplier management; customer and distribution channel management; production planning and control; and information systems for logistics and production planning. Structural properties of the supply chain seem to have an effect on skills that are related to supply chain design and information flow infrastructure, i.e. the ability to locate the various nodes in the network, and to connect and coordinate their respective activities in the face of often uncertain demand.

Research limitations/implications

The results are based on survey research with a limited sample size and geographic coverage with bias towards large firms. The research scope is further limited to investigating the influence of structural properties of the supply chain, leaving opportunities for further research on the demand for SCM skills.

Originality/value

The authors report original findings that provide input to the development processes of training programmes and university curricula, related to supply chain management. They also initiate theory development on the determinants of demand for SCM skills.

Details

Supply Chain Management: An International Journal, vol. 18 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 June 1999

N. Potts

The aim of this article is to explore the current European debate over labour market flexibility. First, it considers lessons from economic theory. The classical consensus…

2367

Abstract

The aim of this article is to explore the current European debate over labour market flexibility. First, it considers lessons from economic theory. The classical consensus considering unemployment to be purely voluntary, the Keynesian consensus introducing the concept of demand deficient involuntary unemployment and finally the neo‐classical consensus returning us to the classical viewpoint of the dominance of real conditions in the labour market. In order to proceed without confusion the article provides a clear working definition of the natural rate of unemployment and its three main components, voluntary unemployment, structural unemployment and involuntary unemployment. It then proceed to analyse each of these main components in detail, illustrating the difference between a free market approach and a European Commission approach to reducing each component of unemployment. The article concludes that the future is dependent on all EU citizens as electors of governments and holders of wages to moderate.

Details

European Business Review, vol. 99 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 14 August 2009

Gerhard Blickle, Jochen Kramer, Ingo Zettler, Tassilo Momm, James K. Summers, Timothy P. Munyon and Gerald R. Ferris

The purpose of this paper is to determine whether political skill is equally effective in its prediction of job performance for different job demands.

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Abstract

Purpose

The purpose of this paper is to determine whether political skill is equally effective in its prediction of job performance for different job demands.

Design/methodology/approach

This paper uses self‐report sources of employee performance and self‐report of political skill after several weeks along with three ratings of target individuals' job demands.

Findings

Results support the hypothesis that Holland's enterprising category (i.e. because of its job demands and requisite job competencies to be effective) will moderate the relationship between political skill and job performance, demonstrating stronger predictability under high enterprising job demands.

Research limitations/implications

The present results suggest that political skill is a better predictor of job performance under situations of high enterprising job demands than under conditions of low enterprising job demands. Furthermore, social and conventional job demands do not significantly moderate the political skill‐job performance relationships, implying that these job demands act as an important boundary condition.

Practical implications

Politically skilled individuals are more likely to succeed in environments (e.g. enterprising jobs) where they have the opportunity to exercise interpersonal influence, and where that interpersonal influence is directly related to their performance.

Originality/value

This paper makes several contributions to theory and practice in vocational achievement and political skill. Perhaps, most significant is the identification of job demands as a boundary condition in the political skill‐job performance relationship.

Details

Career Development International, vol. 14 no. 4
Type: Research Article
ISSN: 1362-0436

Keywords

Article
Publication date: 5 November 2018

Kea Tijdens, Miroslav Beblavý and Anna Thum-Thysen

The purpose of this paper is to overcome the problems that skill mismatch cannot be measured directly and that demand side data are lacking. It relates demand and supply side…

Abstract

Purpose

The purpose of this paper is to overcome the problems that skill mismatch cannot be measured directly and that demand side data are lacking. It relates demand and supply side characteristics by aggregating data from jobs ads and jobholders into occupations. For these occupations skill mismatch is investigated by focussing on demand and supply ratios, attained vis-à-vis required skills and vacancies’ skill requirements in relation to the demand-supply ratios.

Design/methodology/approach

Vacancy data from the EURES job portal and jobholder data from WageIndicator web-survey were aggregated by ISCO 4-digit occupations and merged in a database with 279 occupations for Czech Republic, being the only European country with disaggregated occupational data, coded educational data, and sufficient numbers of observations.

Findings

One fourth of occupations are in excessive demand and one third in excessive supply. The workforce is overeducated compared to the vacancies’ requirements. A high demand correlates with lower educational requirements. At lower occupational skill levels requirements are more condensed, but attainments less so. At higher skill levels, requirements are less condensed, but attainments more so. Educational requirements are lower for high demand occupations.

Research limitations/implications

Using educational levels is a limited proxy for multidimensional skills. Higher educated jobholders are overrepresented.

Practical implications

In Europe labour market mismatches worry policy makers and Public Employment Services alike.

Originality/value

The authors study is the first for Europe to explore such a granulated approach of skill mismatch.

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