Panel Paper: Skills and Skill Gaps in Manufacturing: Evidence and Implications

Thursday, November 7, 2013 : 3:00 PM
Thomas Salon (Washington Marriott)

*Names in bold indicate Presenter

Andrew Weaver, Massachusetts Institute of Technology
In recent years there has been considerable controversy over the questions of what skills U.S. manufacturers demand, and whether manufacturing firms are able to find these skills in the workforce. Does a skill gap exist, even in the face of high unemployment and stagnant wages for skilled workers? To answer these questions we conducted a nationally representative survey of 900 manufacturing establishments. In a forthcoming paper, we document the specific hard and soft skills that manufacturers require for their production workforces. We then relate these skill demands and other establishment characteristics to the presence or absence of skill gaps—in the form of long-term vacancies—to shed light on the debate. We situate this discussion of skills in an analysis of the changing nature of the American skill production system. We find that the majority of manufacturing establishments are able to access the skills that they demand, but that a minority does face elevated levels of long-term vacancies. We analyze the characteristics of these firms, and we conclude with policy recommendations that are targeted at the challenges that the American skill production system faces.

Full Paper: