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Structural unemployment in Croatia – How important is the occupational mismatch?

This article studies the importance of structural unemployment in the Croatian labour market via occupational mismatch between vacancies and unemployment in the period 2004– 2011. The matching function which incorporates the effect of occupational mismatch on the flow of filled vacancies is used for the aggregate market as well as for different submarkets based on the grouping of similar occupations. It appears that occupational mismatch does not have an impact on the aggregate flow of filled vacancies. The portion of total unemployment that can be attributed to occupational mismatch is estimated to be only up to 6%, while the portion of unemployment attributed to mismatch in different submarkets varies greatly.

structural unemployment ; skills ; occupations ; education ; mismatch ; Croatia

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