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Working Paper. No 312: Job displacement and skill mismatch

PublikationWorking paper
Arbetsmarknad, Kristina Nyström, KTH
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Sammanfattning

Because of structural and technological changes, millions of employees experience job displacement every year (OECD, 2013a). Concurrently, a substantial proportion of employees can be defined as skill mismatched (OECD, 2013b). This paper explores the relationship between skill mismatch and job displacements. Are employees who are skill mismatched at their job more likely to become displaced? To explore the relationship between skill mismatch and job displacements, a dataset collected by the Programme for the International Assessment of Adult Competencies (PIAAC) from 27 countries is used. This dataset enables the identification of skill mismatch. Three measures that reflect skill mismatch in the domains of literacy, numeracy, and problem solving are used. The empirical findings suggest that over-skilled employees are less likely to be displaced, while under-skilled employees are more likely to be displaced. These findings are valid for all three skill domains.

Nyström, K. (2018). Job displacement and skill mismatch. (Ratio Working Paper No. 312)


Liknande innehåll

Working Paper No. 333: Balancing employment protection and what’s good for the company
Working paperPublikation
Stern, C. & Weidenstedt, L.
Publiceringsår

2020

Publicerat i

Ratio Working Paper

Sammanfattning

Like most developed countries, Sweden has institutionalized employment protection legislation, called LAS. LAS is interesting theoretically because parts of it are semi-coercive. The semi-coerciveness makes it possible for firms and unions under collective agreements to negotiate departures from the law, for instance regarding seniority rules and terminations due to employees’ fit and/or misconduct. In this sense, the law is more flexible than the legal text suggests. The present study explores how the semi-coercive institution of employment protection is perceived and implemented by managers of smaller manufacturing companies. The results suggest that managers support the idea of employment protection rules in principle but face a difficult balancing act in dealing with LAS. Thus, the institutional legitimacy of the law is low. LAS ends up producing local cultures of hypocrisy and pretense. The paper gives insights into how institutions aimed at producing good moral behavior sometimes end up producing the opposite.

Working paper No. 276: Regional resilience to displacement
Working paperPublikation
Nyström, K.
Publiceringsår

2016

Publicerat i

Ratio Working Paper

Sammanfattning

This paper contributes to knowledge about regional resilience to displacement and examines the extent to which the characteristics of the i) regional closures, ii) individuals in a region, iii) regional industry, iv) regional economy and v) regional attractiveness influence the re-employment of displaced employees. The results indicate that regions where the average size of establishment closures is large or the regional displacement rate is high exhibit increased resilience in terms of re-employing displaced employees in the same region. Unrelated and related industrial variety are positively related to resilience to displacement in regions with low re-employment capacities, whereas there is some evidence that regional attractiveness is positively related to resilience in regions with a good ability to re-employ displaced employees.
Related content: Regional resilience to displacement

New firms as employers: The wage penalty for voluntary and involuntary job switchers
Artikel (med peer review)Publikation
Nyström, K. & Zhetibaeva Elvung, G.
Publiceringsår

2015

Publicerat i
Sammanfattning

According to previous research, new firms pay lower wages (Shane, 2009). However, previous studies have been unable to control for the possibility that the opportunity costs of accepting employment at new firms may differ across individuals. In this paper, we investigate whether a wage penalty for being employed at a new firm exists if we take the individual employee’s experience and status in the labour market into consideration. We focus on individuals who decide to switch jobs and use matched employee-employer data about all firms and employees in Sweden for the period 1998-2010. Our results show that the share of job transitions into lower wages are higher for those who switch to new firms compared to incumbent firms (40 percent and 31 percent respectively). Our endogenous wage equation estimates indicate that being an involuntary job switcher has an equally negative effect on wages at both new and incumbent firms. However, the positive effect of education on wages is more pronounced for job switchers selecting into incumbent firms.

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