Skill mismatch and the costs of job displacement


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Author: Nedelkoska, Ljubica; Neffke, Frank; Wiederhold, Simon


[The authors] study whether earning losses after job displacement can be attributed to the skill mismatch that arises when workers' human capital is underutilized at the new job. Using detailed task data, [the authors] create asymmetric measures of skill mismatch between occupations. They use these measures to study the effect of worker displacement in plant closures and mass-layoffs in Germany, exploiting these events as exogenous job separations. To control for observed and unobserved worker heterogeneity, [the authors] use propensity-score matching and estimate difference-in...  [+] Show more

Subjects: Skills and knowledge; Employment; Income

Keywords: Skills mismatch; Underemployment; Retrenchment; Education work relationship

Geographic subjects: Germany; Europe

Published: Nashville, Tennessee: American Economic Association, 2015

Physical description: 45 p.

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Date: 2015

Place: Boston, Massachusetts

Resource type: Conference paper

Peer reviewed: Yes

Document number: TD/TNC 119.430

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