Mismatch unemployment in Austria: the role of regional labour markets for skills

Over the past decade, the Beveridge curve in the Austrian labour market has shifted significantly outward. Using detailed administrative data on job vacancies and registered unemployed persons by region and skill level, we investigate which factors have caused this shift. We find that the Beveridge curve has shifted mainly because mismatch has increased significantly. Looking at the regional and skill level dimensions of mismatch unemployment, we find a significant increase in mismatch unemployment in manual routine jobs and in the Vienna region of Austria.