Young people are particularly affected by over-skilling, as the incidence of over-skilling generally diminishes with age. In addition, over-skilling has a relatively small negative effect on wages. This suggests either that most employers succeed in identifying their employees' real skills, irrespective of their formal qualifications, and adapt job content accordingly or that wages are negotiated based on skills other than literacy, numeracy and problem solving in technology-rich environments and how those skills are used at work.