They also raise the likelihood for employers to learn about workers' skills over time (OECD, 2014a). As discussed in Chapter 4, youth are more likely to be hired on temporary contracts, and these contracts lead to lower utilisation of skills than permanent contracts. Sound employment protection legislations ease transition from temporary lo permanent employment, which is associated with a more effective use of skills. Flexible wage setting arrangements make it easier to adjust wages to the effective skills of workers and thereby to mitigate the potential negative impact of mismatch on job satisfaction.