The first objective of the report is to provide an updated conceptual framework to study skill mismatch. The framework details the possible causes of mismatch and groups them into broad categories. It then reviews the strategies available to measure skill mismatch, discusses the type of mismatch they are supposed to capture, their ability to capture it, and their limits.
The second objective of the report is to understand the links of these measured skills with labor market outcomes to see if they can provide market relevant information that can justify their cost. We analyze whether employment and wage outcomes are explained to a larger extent by measures of skills or by information on education, which is much easier to acquire.