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Modelling reallocation processes in long-term labour market projections

Author

Listed:
  • Maier, Tobias

    (BIBB)

  • Neuber-Pohl, Caroline

    (BIBB)

  • Mönnig, Anke

    (Institute of Economic Structures Research, Osnabrueck)

  • Zika, Gerd

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Kalinowski, Michael

    (BIBB)

Abstract

"Long-term labour market projections are a popular tool for assessing future skill needs and the possibility of skill shortages. It is often noted that reallocation processes in the German labour market are hindered due to its strong standardization and occupational segmentation. However, it is possible that persons leave the occupation for which they have been trained for. Disregarding such reallocations and their dynamics in the projection model is likely to distort the results and lead to inaccurate practical advice. In this article, we describe for the first time, how reallocations in the labour market can be modelled using occupational flexibility matrices and wage dynamics. Here, it is shown that employers react to labour scarcity by increasing wages to attract workers who to some extent can adjust their mobility behaviour accordingly. We analyse the aggregate impact of this implementation of a reallocation process of labour supply on the projection results by the means of scenario comparisons. Our results suggest that considering reallocations but also additionally their dynamics has substantial effects on the projection outcomes. They help draw an insightful picture of the future labour market and prevent over- or understating the potential for labour shortages in several occupations. We conclude that the assumptions about how reallocations differ by occupation and to what extent they can be realized by wage impulses is essential for projection results and their interpretation. Furthermore, we find that in the German labour market, wage adjustments cannot balance the labour demand and supply for occupations completely." (Author's abstract, © Springer-Verlag) ((en))

Suggested Citation

  • Maier, Tobias & Neuber-Pohl, Caroline & Mönnig, Anke & Zika, Gerd & Kalinowski, Michael, 2017. "Modelling reallocation processes in long-term labour market projections," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 50(1), pages 67-90.
    • Handle: RePEc:iab:iabjlr:v:50:i:1:p:067-090
    DOI: 10.1007/s12651-017-0220-x
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    Citations

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    Cited by:

    1. Mönnig Anke & Maier Tobias & Zika Gerd, 2019. "Economy 4.0 – Digitalisation and Its Effect on Wage Inequality," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(3), pages 363-398, June.
    2. Tobias Maier & Anke Mönnig & Gerd Zika, 2021. "Folgen der COVID-19-Krise auf die kurz-, mittel- und langfristigen Beschäftigungs- und Entlohnungschancen nach Berufen [Consequences of the COVID-19 crisis on short-, medium- and long-term employme," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 15(2), pages 107-138, June.

    More about this item

    Keywords

    Bundesrepublik Deutschland ; IAB-Open-Access-Publikation ; berufliche Flexibilität ; berufliche Mobilität ; Berufsgruppe ; Fachkräftebedarf ; Berufswechsel ; Fachkräfte ; Allokation ; Lohnentwicklung ; Modellentwicklung ; Anpassung ; Prognosemodell ; Prognoseverfahren ; BIBB/IAB-Qualifikations- und Berufsfeldprojektionen ; Arbeitskräfteangebot ; Arbeitskräftemangel ; Szenario ; Arbeitskräftenachfrage ; Umverteilung ; Arbeitsmarktprognose ; 1991-2030;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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