Large imbalances between the supply and demand for skills in transition economies are driven by rapid economic restructuring, misalignment of the education system with labor market needs, and underdeveloped adult education and training systems. The costs of mismatches can be large and...

Better understanding of skill mismatch can help policy-makers in their efforts to match skills and jobs in Europe. Skill mismatch is a complex phenomenon affecting individuals, enterprises, economies and societies; it does not only refer to skill gaps and skill shortages, but also to skills...

We consider the economic implications of a compressed wage structure which is exogenously determined by institutions. An important feature of our analysis is that human capital is endogenous and can be achieved either as formal education or as informal training within firms after entering the...