Labour Market Tightness and Matching Efficiency in Different Labour Market Segments – Do Differences in Education Matter?

Abstract This paper analyses the existing educational structures of selected EU member countries and their alignment with the labour market (LM) needs. This study aims to identify potential structural mismatches between the skills taught in schools and universities and the skills and knowledge required in the workplace. To evaluate this educational mismatch, the paper explores the matching needs of employers and unemployed job seekers by using disaggregated national employment office data. The paper examines the selected group of EU countries (AT, HR, EE, SI, ES) from 2010 to 2022, using the Beveridge curves and estimating LM tightness and matching efficiency for different education groups. The results show that differences in education levels result in relatively small deviations from aggregate trends in the LM. Aggregate LM trends strongly impact all education groups in the labour market.