Impact of High-Level Skill Shortages on Firm-Level Performance: Evidence from the UK Technical Graduate Labour Market

This paper uses data from the 1998 Technical Graduates Employers Survey, combined with post-survey financial data, to examine the effects of high-level skill shortages on firm-level performance in the UK. Cross-sectional and panel regression analysis of the determinants of sales per employee at firm level suggests that quality-related difficulties in recruiting ICTskilled engineers and scientists do not have any statistically significant effects on performance.