Job Mismatch & Education: Analysis of European & Romanian Labor Markets, Study notes of Business Informatics

Download Job Mismatch & Education: Analysis of European & Romanian Labor Markets and more Study notes Business Informatics in PDF only on Docsity! DOI 10.1515/cplbu-2017-0003 8th Balkan Region Conference on Engineering and Business Education and 10th International Conference on Engineering and Business Education Sibiu, Romania, October, 2017 Job matching as a new challenge for work performance Magdalena VELCIU National Scientific Research Institute for Labour and Social Protection Institution, Bucharest, Romania magda.velciu@incsmps.ro ABSTRACT In actual challenging environment, progress and growth is more than an economic issue and it involve human capital, development of human resources in terms of knowledge, skills, and competences. The workforce offer and demand is not sufficient to make progress but we need a concept that bring together skills, competency, jobs and productivity that drive economic growth. From the perspective of this paper, we deal with job mismatch as a qualitative imbalance that occurs when the characteristics of workers (level of education, qualification, skills) are not in direct relation with the work requirements, with accent on education requirements. I present some analytical highlights on education-job mismatch at European level and in Romania. Education requirements of jobs vary across countries. In Romania, almost 60% of adult employees, consider medium level of qualification is sufficient to do the job. Remarcable is that the procent is the highest amoung all responders from European countries. The subject have great importance to improve the matching as equilibrium between educational offer for developing skills, competences, knowledge with occupational requirements coming from changing business environment. Keywords: Job-education mismatch, education requirements, skills, qualifications THEORETICAL BACKGROUND Job mismatch is a new, complex and dynamic concept, manifested at different levels of labor market and related to the overall economic situation of the national economy. The high competitive arise the need to better use of work resources and to create a better match between worker (mean competences, knowledges, abilities and attitudes) and workplace (mean requirements, results, performance). In 2014, job mismatch affected, on average, 29% of the European adult working population (Cedefop, 2014). European policy promotes the job matching as a way for raising productivity and improving worker well-being. The EU Skills Panorama, launched in 2012, supports the effort to provide better data and information on skills needs in the labour market. Turvey R. (1977) provided a first definition used in the scientific field. Job mismatching is a lack of matching between job vacancies and job seekers or the unemployed, so if those people looked for another job or if he had other skills, then unemployment would have been lower. Initially, the concept of job mismatch was defined as a lack of equilibrium in employment, being in relation with unemployment. Was seen as an imbalance between the workforce supply and demand. Since the 1970s, the phenomenon has been known in the literature as "structural imbalance" to explain the high unemployment rates, in spite of many available jobs. Mismatching is not similar with the existence of a major imbalance between labor demand and supply, only represents the effect of lack of correlation. Better understanding, and more efficient use, of labour market information are among potential preventive measures to reduce the risks of skills mismatch. Anticipation of skills can be perceived as a preventive measure, providing an early warning of potential mismatch in the labour market and giving the actors (policy-makers but also companies, education providers and individuals) information to prepare for it (Cedefop, 2016). Education and job mismatches are reported to have many effects on work performance, job satisfaction and other outcomes of labour market. Educational mismatches affect wages strongly, more than skill mismatches. The Romanian researchers results (Zamfir, 2013) show a negative effect of the education-job mismatch on wages in most of the cases. Thus, higher education determines higher productivity, but productivity is shaped by job adequacy. But, measurement alone is not sufficient, as long as the information obtained is not used in other decision-making processes like: strategic planning, quality management, budgeting, increased productivity (Ghenţa, 2015). Theories of job mismatch The mismatch is seen as the incompatibility or the existence of a weak "match" between the characteristics of workplaces (skills required, competences etc.) and the characteristics of job seekers (skills, level of education and localization preferences). There are several scientific theories that can be useful in understanding the possible causes of job mismatching, the effects and implications such as: Human Capital Theory (Becker, 1985), Theory of Technological Development (Romer, 1990), Theory of Career Mobility (Sicherman, Galor, 1990), Labor Market Segmentation Theory (Cain, 1976), Theory of Allocation (Sattinger, 1980). Here are some important aspects to describe. From the perspective of human capital theory, education and training have a major influence on labor productivity and employee income. In theory, there is a single, efficient and fair labor market where jobs and wage levels are directly related to the worker's skills, knowledge and skills. Variables such as job availability or job-related tasks are not a decisive factor in the function of adequate employment or income formation. In this theory, individuals are employed in the right, optimal workplace, and inadequate problems are minor, solving themselves in a long term. The theory of labor market segmentation emphasizes the characteristics of the workplace and the labor market, coming in direct relationship with the productivity and wages, more than the individual's characteristics. The labor market is seen as being composed of two or more segments, subject to different regulations, supply and demand conditions, leading to wage differentials and other results such as: job security, access to training and human capital development. On the other hand, mobility between segments is limited for various reasons including level, type of qualification, work experience. According to the allocation theory, allocation is optimal when workers are employed to top-down jobs in direct relation to their competencies, i.e. the most skilled worker perform a job with complex requirements, and the less competent worker occupies the most simple job. The importance of human capital accumulation for economic growth is certain, but the focus of specialists is now focused on providing evidence of the importance of efficient and appropriate allocation of human resources to jobs (Quintini, 2011). CONCLUSIONS Job mismatch has become a growing concern for policy-makers at national and European Union levels. The goal of matching education, qualification and skills requires reforms to increase the responsiveness of education and training systems to labor market needs, for not only a well- educated workforce but well matched workforce. Matching qualification and skill supply to the needs of national economy is a dynamic process. In practice, especially in turbulent times, workers do not have right qualification level and skills required by the job or, opposite, the skills of the workers are not sufficiently exploited in the current workplace. This lack of matching may be temporary, short-term, or long-term. Of course, it takes time for the education providers to prepare the graduates equipped with better qualifications and skills to adapt to the labor market demand for rising performance. So, the research of educational requirements is essential, along with incidence of educational mismatches and evolution of qualification. Managing the skill mismatch challenge have to be a common concern of employers, education and training providers and the state in their policy-making processes. Employers are responsible in providing training and to adequate their internal skills supply, and educational responsible and training providers are responsible to invest in skills and work related learning. The state has a role in research and ensuring effective skills anticipation systems and matching instruments, along with governance arrangements, so that qualification and skills supply to be better matched to skill demand. REFERENCES Cain, G. G. (1976). The challenge of segmented labor market theories to orthodox theory: a survey. Journal of Economic Literature, 14(4), 1215-1257. Descy P., Tessaring M. (2001). Training and learning for competence: second report on vocational training research in Europe, synthesis report. Luxembourg: Publications Office (Cedefop Reference series). Gary S. Becker, Human Capital, Effort, and the Sexual Division of Labor, Journal of Labor Economics 3, no. 1, Part 2 (Jan., 1985): S33-S58. Ghenţa M., Matei A., & Mladen L.. Performance Measurement in Social Care Services for Older People Revista Românească pentru Educaţie Multidimensională VII(2) (2015) 97-109 Paul M. 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