Skill effort: a new theoretical perspective on the relation between skills, skill use, mismatches, and wages
Research output: Working paper › Professional
In the paper we use this concept to develop a skill matching model using data on numeracy proficiency from the Programme for the International Assessment of Adult Competencies. We apply a realized matches approach to turn the skill effort model into three components: the effect of required skill effort, the effect of overperformance and the effect of underperformance. This model explains 29% of the variance in wages, which is much higher than the 23% found in alternative skill mismatch models. Moreover it not much lower than a standard educational mismatch model that explains 31% of the variance in wages. As education imparts more skills than just numeracy, this is in fact an indication that the developed skill mismatch model is very good. We discuss remaining issues on the measurement of this concept and present different ways to address them.
- skill proficiency, skill use, Mismatch, wages
- RM17013 II
Final published version, 823 KB, PDF-document