Page 51 - Special Topic Session (STS) - Volume 1

STS364 Maria F.
On the other hand, with overeducated and overskilled human capital we
meet both benefits and risks:
1. only overeducated and overskilled professionals can make the
breakthrough;
2. lost productivity and lower growth for companies is possible in case
overeducated and overskilled workers lose job satisfaction and
motivation, because of lower wages or unrealized expectations.
The phenomenon of highly educated informal employees is broadly spread
in developed countries. Currently we observe the change of the share of
informal employment in total employment, including both “informal
employment in the formal sector of economy” and “employment in the
informal sector”.
The rates of economic growth in many aspects depend on the quality of
human capital and the match of professional training accomplished by
educational institutions to the labour market demand. Valentina Stoevska,
Department of Statistics, International Labour Office (ILO) distinguishes the
following negative consequences and potential cost that the situation with
persistent qualification and skill mismatches can lead to: “For workers (for
overeducated and overskilled) - lower wages lower job satisfaction, loss of
motivation, higher on-the-job search, higher the risk of being out of
employment, unrealized expectations, lower returns on investment in
education. For employers – lost productivity, increased absenteeism, higher
turnover, lower growth, less innovation. For society - wasted education costs,
higher unemployment benefits, lost income tax revenues. Total cost depends
on the number of mismatched individuals, the type and severity of
mismatches.”
For operation management and efficient control of investments made into
education sector on macro and micro level by government, companies and
households we need to evaluate the efficiency of tertiary education programs
in relation to meeting labour market challenges. To accomplish this goal the
following steps were suggested and made by the author:
1. the study of methodologies used for collecting data on the matches
and mismatches of the employers’ demand and professional
qualification of the manpower;
2. the study of methodologies used for collecting data on tertiary
education.

2. Methodology
2.1. In 2018 International Labour Office (ILO) introduced draft Guidelines
concerning measurement of qualifications and skills mismatches of persons in
employment, represented during the 20th International Conference of Labour
Statisticians in Geneva. The suggested approach is based on methodological

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