Skills are the key elements contributing to the prosperity of nations and to better lives for individuals. In the context of dynamic and complex labor market, improved matching of skills and job is paramount important. Therefore, skills matching in the labor market needs to be properly addressed so that the mismatch of skills in the labor market can be avoided.
In this literature review, we will discuss on the issue of skills mismatch in the labor market. In general, skill mismatch can be defined as the differential in skills acquired by labor and skills needed by employer in the labor market. In addition, many theoretical framework has been associated with skill mismatch. For instance, human capital theory and job assignment theory . Skill …show more content…
This theory indicated that, education develops skills and make the graduates more productive in their job and because of that, they will get higher earnings. In human capital theory, three main ideas were being discussed. Those ideas are, 1) The primary role of formal schooling is to develop the human capital, or the knowledge and skills, of future workers;2) The labor market efficiently allocates educated workers to firms and jobs where they are required;3) The human capital of workers increases their productivity in the workplace which is then rewarded with higher earnings. By looking at this theory, it is normal to assume that the decision on course selection in secondary and tertiary level of education is very important. This is because, wrong selection of course may affect the learning processes and due to that some skills may not be properly …show more content…
Wim Groot H.M. van den Brink, (2000), has analyzed three types of skill mismatches in their work. The first one is derived from the average years of education within the labor’s job. They describe a labor as being overeducated if his years of education are more than one standard deviation beyond the average years of education within one’s job. Besides that, a labor is undereducated if his years of education are less than one standard deviation below the average years of education of the relevant job.
Wim Groot H.M. van den Brink, (2000) derived the second classification from a comparison between the educational level and the job level of the employees. They states that employee are considered as undereducated if they have less education than the minimum amount required at the job level they are working. Whereas, employee with more education than the maximum amount specified at their job level are considered as overeducated. The final classification is based on self-report on skill mismatch by the respondents of the OSA-survey. Firstly, workers are asked to evaluate the quality of the match between the job and their education. Workers who do not qualify this match as being “good” are then questioned in what way do the match is less than ideal. Using this way, the workers can indicate if their education level is higher than required for the job or if their education level is lower than required for the
In this literature review, we will discuss on the issue of skills mismatch in the labor market. In general, skill mismatch can be defined as the differential in skills acquired by labor and skills needed by employer in the labor market. In addition, many theoretical framework has been associated with skill mismatch. For instance, human capital theory and job assignment theory . Skill …show more content…
This theory indicated that, education develops skills and make the graduates more productive in their job and because of that, they will get higher earnings. In human capital theory, three main ideas were being discussed. Those ideas are, 1) The primary role of formal schooling is to develop the human capital, or the knowledge and skills, of future workers;2) The labor market efficiently allocates educated workers to firms and jobs where they are required;3) The human capital of workers increases their productivity in the workplace which is then rewarded with higher earnings. By looking at this theory, it is normal to assume that the decision on course selection in secondary and tertiary level of education is very important. This is because, wrong selection of course may affect the learning processes and due to that some skills may not be properly …show more content…
Wim Groot H.M. van den Brink, (2000), has analyzed three types of skill mismatches in their work. The first one is derived from the average years of education within the labor’s job. They describe a labor as being overeducated if his years of education are more than one standard deviation beyond the average years of education within one’s job. Besides that, a labor is undereducated if his years of education are less than one standard deviation below the average years of education of the relevant job.
Wim Groot H.M. van den Brink, (2000) derived the second classification from a comparison between the educational level and the job level of the employees. They states that employee are considered as undereducated if they have less education than the minimum amount required at the job level they are working. Whereas, employee with more education than the maximum amount specified at their job level are considered as overeducated. The final classification is based on self-report on skill mismatch by the respondents of the OSA-survey. Firstly, workers are asked to evaluate the quality of the match between the job and their education. Workers who do not qualify this match as being “good” are then questioned in what way do the match is less than ideal. Using this way, the workers can indicate if their education level is higher than required for the job or if their education level is lower than required for the