Abstract: This article analyses and quantifies the mismatch in the Estonian labour market at the county (regional), occupational and industrial levels, for the time span 2011-2021. Applying the search and matching theory and the mismatch index framework, findings show that around 4-5 percent of hirings have been lost due to mismatch. Moreover, the matching efficiencies shows that certain disaggregated labour markets are subject to frictions resulting from possible mismatch.

Keywords: search and matching theory, mismatch index, regional mismatch, occupational mismatch, unemployment, vacancies

Authors:
Simona Ferraro, Department of Economics and Finance, Taltech
Pauline Kommer, Tallinn University

The public research seminars of the Department of Economics and Finance (DEF) at Tallinn University of Technology  usually take place on the second and fourth Wednesdays of the month in both onsite and online format, unless announced otherwise. The presentation will last approximately 45 minutes followed by 15 minutes of discussion. The seminars are held in English. Copies of the paper are usually made available at the seminar. The DEF seminar series is organised in collaboration with the project ”Individual Behaviour and Economic  Performance: Methodological  Challenges and Institutional Context” (IBEP), which has received funding from the European Union’s Horizon 2020 Research and Innovation programme under Grant Agreement No 952574. Questions about the seminar can be sent to the IBEP seminar coordinator Kadri Männasoo, kadri.mannasoo@taltech.ee.