Abstract
<p>Although skill mismatch in the labor market is an important topic of discussion and research worldwide, that phenomenon in the Japanese labor market or organizations remains to be fully elucidated, despite the fact that Japan has a distinctive employment system. Therefore, using newly available data, such as longitudinal personnel data and employee satisfaction survey data, this study investigates the existence and determinants of vertical skill mismatch in a typical medium-sized Japanese company in order to address the dearth of similar literature in Japan. As a result, this study shows the vertical skill mismatch of frequent occurrence. Additionally, empirical results reveal: 1) job autonomy decreases the likelihood of vertical skill mismatch; 2) supervisors’ precise advice related to business activities for their subordinates reduces the likelihood of vertical skill mismatch; and 3) communication among employees in the workplace increases accessibility to skill matched roles. Career development in the Japanese company may not reflect a linear progression from easy work to more difficult work, but may rather be more of a mixed change involving under- and over-skilled mismatching.</p>