Millennium Nucleus for the Study of Labor Market Mismatch: Causes and Consequences (LM²C²)

The quality of the match between companies and workers in the labor market is crucial for their performance: a good match between the skills and tasks of workers increases personal satisfaction in their jobs, job stability, wages, and, therefore, productivity. However, the evidence indicates that there are wide mismatches between the characteristics required in the position and those that the worker possesses in Chile and the world.

Through the combined work of economists and sociologists, The Millennium Nucleus for the Study of Labor Market Mismatch: Causes and Consequences (LM²C²) seeks to understand the consequences of the mismatch from a novel and multidisciplinary perspective to produce high-quality academic contributions. Specifically, it will seek to understand the impact of the possibility of mismatches in the labor market on incentives and productivity, how different types of labor market frictions affect these mismatches, and what their consequences are on the acquisition of human capital.

Additionally, it will seek to understand how mismatches influence segregation, wage inequality, informality, and social mobility and whether this same lack of social mobility and discrimination can, in turn, cause mismatches. The results of the core investigations will generate evidence that will contribute to national and international research and will be highly relevant to the development of public policies in the country.