This “skills mismatch” is routinely held up to explain why the unemployment rate is still at 8.2% three years after the Great Recession officially ended, and why nearly half of those out of work have been so for more than six months…
In recent months, researchers from the Federal Reserve Bank of Chicago, the University of California-Berkeley, and the Wharton School have expressed skepticism about the existence of a national skills mismatch. A larger body of work, stretching back decades, paints a murky picture about how broad-based a problem worker skill level is. Despite this, policymakers have fretted about the issue for 30 years, in periods of high unemployment and low. If the research is far from certain, why does the skills-mismatch narrative stay with us? And by fixating on mismatched skills, are we ignoring a far bigger problem for the economy?
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