DigitALAD Hanbook_All sections_FV

52 that typically require a lower qualification than they hold, i.e., they are overqualified. Additionally, 19% of adults work in jobs that usually require a higher qualification than they save, i.e., they are underqualified. Research suggests that mismatches harm the individual's job satisfaction and wages and can lead to lower productivity and increased turnover at the firm level (OECD, 2017c). Recognising these skills through validation and certification can benefit individuals, employers and the economy. For the individual, it recognises their (informal) learning effort, which can increase motivation and become a stepping-stone to further (formal) learning. Employers benefit from skill recognition through higher productivity by better matching employees' skillsets and jobs. The benefits of skill validation and certification for the individual and employer, in turn, improve labour market functioning (Kis & Windisch, 2018). For these positive effects to materialise, it is essential that employers and society at large value certificates that are obtained through skill recognition and see them as equivalent to those acquired through formal learning (OECD, 2019). Check out the short, animated video on the European skills index, created by Cedefop to help countries observe overtime where they stand concerning skills systems, how they are doing in comparison to each other, what the areas with room for improvement are, and where to look for best practices (CEDEFOP, 2020). Video 1 . European skills index (CEDEFOP, 2020).