VERTICAL VS HORIZONTAL GREEN SKILLS MISMATCHES: EVIDENCE FROM NORTH MACEDONIA

Nikoloski, Dimitar and Jovanovic, Branimir and Midovska, Marija and Jovanoska, Dijana (2026) VERTICAL VS HORIZONTAL GREEN SKILLS MISMATCHES: EVIDENCE FROM NORTH MACEDONIA. Economic development, 2026 (1). pp. 25-39. ISSN 1409-7893

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Abstract

The green transition reshapes labour markets and generate increased demand for specialized green skills, intensifying skills mismatches in transition economies. This paper provides theoretical background and empirical evidence on vertical and horizontal green skills mismatches in North Macedonia, on a representative survey of 530 firms conducted in March/April 2025. Vertical mismatch is defined as inadequacy of qualification levels, while horizontal mismatch captures misalignment between employees’ field-specific green skills and job requirements. Using ordered logistic regression, the study examines how firm characteristics, including size, sector, internationalization, adoption of environmental standards, CSR practices, and training capacity, influence the likelihood of green skills mismatches. The findings indicate that underskilling and horizontal mismatches are the most prevalent challenges, particularly among SMEs, exporting companies, and firms pursuing advanced environmental standards. Conversely, firms with foreign direct investment and those actively implementing green practices face lower field-related mismatches. Sectoral and occupational analyses reveal substantial heterogeneity in green skill readiness. The study underscores the need for targeted upskilling, VET curriculum reform, and stronger industry–education collaboration to enable an inclusive and effective green transition in North Macedonia.

Item Type:	Article
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Economics
Depositing User:	Efp Eprints
Date Deposited:	26 May 2026 08:06
Last Modified:	26 May 2026 08:06
URI:	https://eprints.uklo.edu.mk/id/eprint/11592

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