Skills (Mis)Match Analysis in the EU: Disaggregating "Objective" Mismatch Measures and the Role of Vocational Qualifications

Despite policy relevance, a persistent challenge remains in the ability to empirically measure skills mismatch. Via exploratory and descriptive data analysis using EU Labour Force Survey data, this paper analyses the possibility to develop, at the European level, a more disaggregated approach for an “objective” skills mismatch indicator. The analysis also exploits two novel features of the data – a subjective self-assessment of skills (mis)match as well as a distinction of individuals with medium-level vocational qualifications. The findings include indications that 1-in-4 of tertiary education graduate may be at risk of potential over-qualification; a seemingly good match between medium-level vocational qualifications and jobs in high-skilled ISCO-3 (“Technicians”) occupational group; a low skills match among holders of medium medium-level general orientation qualifications across all occupational groups and a low skills match across all young adults working in jobs belonging to ISCO-8 (“Operators”) occupational group.  The conclusions of the paper point to the possible utility of refining the existing “objective” skills mismatch indicator(s) for cross-national analysis.