VERTICAL VS HORIZONTAL GREEN SKILLS MISMATCHES: EVIDENCE FROM NORTH MACEDONIA
VERTICAL VS HORIZONTAL GREEN SKILLS MISMATCHES: EVIDENCE FROM NORTH MACEDONIA

Summary/Abstract: The green transition reshapes labour markets and generateincreased demand for specialized green skills, intensifying skills mismatchesin 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/April2025. Vertical mismatch is defined as inadequacy of qualification levels, whilehorizontal mismatch captures misalignment between employees’ field-specificgreen 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 thatunderskilling and horizontal mismatches are the most prevalent challenges,particularly among SMEs, exporting companies, and firms pursuing advancedenvironmental standards. Conversely, firms with foreign direct investmentand those actively implementing green practices face lower field-related mis-matches. Sectoral and occupational analyses reveal substantial heterogeneityin green skill readiness. The study underscores the need for targeted upskilling,VET curriculum reform, and stronger industry–education collaboration to en-able an inclusive and effective green transition in North Macedonia.

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