Page 5 - IDEA Study 10 2015 Skills Mismatches

Study 10 / 2015 Skills Mismatches in the Czech Republic1 November 2015 KLÁRA KALÍŠKOVÁ Summary  The recent economic crisis highlighted challenges of efficient job matching process in many European countries. The question of efficient matching process between the skills supplied by educational system and skills demanded by labor market has been raised, because the mismatches of skills on the labor market has been shown to decrease the labor productivity, wages of workers, and the overall performance of the economy. This study examines the efficiency of the job matching process on the Czech labor market. It studies how the educational structure of population evolved over the past 20 years and how the changes in educational structure were reflected in labor market success of graduates. It further analyses the skill mismatches on the Czech labor market from both vertical and horizontal perspective to identify possible inconsistencies between the skills supplied and demanded.  The educational structure of the Czech population shows notable increase in the educational attainment over the past twenty years. Among individuals aged 20-64, the share of tertiary educated more than doubled, while the share of individuals with primary education dropped by more than half. 1 This paper is based on data from the Czech Statistical Office, Labour Force Survey 1994-2014. The responsibility for all remaining errors and conclusions drawn from the data lies entirely with the author. 1