Concept of skill mismatch is very broad and can be measured using a variety of indicators. It is used to describe so-called vertical mismatches (over-education, under-education, excessive or insufficient training), skills gaps, skills shortages, enrolment policy or ‘horizontal’ mismatches and skills obsolescence. In this paper we are analyzing skill mismatch gaps and skills shortages in software industry in Bosnia and Herzegovina using firm level assessment. The research results provide clear evidence for severe skill shortages facing IT companies in Bosnia and Herzegovina. Inadequate tertiary education enrolment policy results in numerous vacancies in software industry, especially for developer’s positions. The evidence of skills gaps are also found. Primarily as a result of inadequate curricula in higher education institutions. The problem of skill gaps is most prominent referring professional (technical) skills, but also some ‘soft’ skills, such as the ability to work with clients, communication skills, problem detection and solving, etc. In a broad group of professional (technical) skills the biggest gaps are found in a sub-group related to fundamental knowledge of programming languages and IT systems, and sub-group related to experience in working with complementary tools and project management. In a way this was expected having in mind the stage of development of software industry in Bosnia and Herzegovina. Identified skill gaps and skill shortages are somewhat lower for non-IT employees. Based on the research findings several policy options are discussed.
Skill Mismatch Assessment: Example of Software Industry in Bosnia and Herzegovina
