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Systematic Literature Review: An Analysis of Skill Mismatch Measurement

Table 1: Summary of skill mismatch measurement

Subjective / Direct subjective measurement
Method Advantages Disadvantages
Employee Survey(Allen & Van der Velden, 2001;Green & McIntosh, 2007) Measure directly employee’sskill in performing the job andtraining provided (Allen & Van der Velden, 2001) Measurement error in which employees tend to exaggerate or overestimate their abilities (Hartog, 2000)
Employer Survey/ Linked Employer-Employee survey/Self-reported approach (Maltseva, 2019) Ease of data collection (Senkrua, 2021; Maltseva, 2019) Bias towards specific answers, small scale (specific industry and occupations) (Senkrua, 2021; Maltseva, 2019)
Objective / Direct objective measurement
Method Advantages Disadvantages
Realized Method Approach (Quintini, 2011) (Maltseva, 2019) The comparison of cognitive skills (literacy, numeracy, and problem-solving) with attainment value of occupation;Level of education required for the job (Flisi et al., 2017)Use International Standard Classification of Occupations;Measured with competency bandwidth (under-skilled and well match (Senkrua, 2021)More objective description of skills (OECD, 2013:5) Sensitive to a cohort effect,misleading education mismatch,less sensitive to outlier and technological change, allow only one education level to be appropriate for each occupation, and too broad occupation grouping and self-report data from PIACC (OECD, 2013)Uses only 1 digit of ISCO (to achieve enough good matches) (Pellizzari & Fichen, 2013)
Job Requirement Approach /Direct Measurement (Maltseva, 2019; Senkrua, 2021) Divided into four categories of skills (Quintini, 2011) Measured by the standard deviation (Allen et al., 2013) Biased as the respondent tends to overstate the skills used at work (Perry, Wiederhold & Ackermann-Piek, 2014) Skill used is not a necessary proxy for skill requirement, average skills are considered well-matched (Van der Velden & Bijlsma, 2017)
Job Analysis / Job Evaluation Method (Nedelkoska & Neffke, 2019) Analysis of education and skills reported by expertise (Nedelkoska & Neffke, 2019) No information about an individual job, only average skills, and education that has been grouped and become a fixed requirement for an occupation, overrated level of education compares to self-reported (Van der Velden and Van Smoorenburg, 1997)Time-consuming (Rodríguez et al., 2021)Expensive & not available at the national level and need recurring updates (McGuinness & Pouliakas, 2017)
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