Global Labor Market, “Re-Shoring” Dynamics, and Skill Mismatch: An Exploratory Study at a Job-Specific Level

Global Labor Market, “Re-Shoring” Dynamics, and Skill Mismatch: An Exploratory Study at a Job-Specific Level

Filippo Ferrari (Bologna University, Italy)
DOI: 10.4018/978-1-5225-5787-6.ch007

Abstract

Workers' capabilities and knowledge are factors that a company can use to boost its productivity. The relocation of operational activity away from industrialized nations has led to the erosion of manufacturing skills, and this fact often results in a severe skill shortage in specific local labor markets, becoming much more prominent in the case of re-shoring. Consistent with the transaction cost economics approach (TCE), the purpose of this research was to verify if students possess at least basic skills at the end of their educational path to face the labor market without economic frictions in school-to-work transition. Finally, this chapter presents a model that could be useful in order to design programs aimed to overcome the erosion of manufacturing skills and provide students with skills that companies need to deal with local labor markets successfully.
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Global Value Chain And Intangible Assets

This chapter is grounded on three different (and here combined) approaches to intangible assets economics: Transaction Cost Economics (TCE), School-to-Work Transition and Educational Mismatch theories (e.g. theories which provide explanations for educational and skill mismatch, such as Assignment Theory, Human Capital Theory, Institutional Theory, and Heterogeneous Skills Theory). These approaches were chosen because of their strong focus on elements like human capital and dynamics of the labour market.

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