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The impact of skills shortage on economic development in Germany – A mixed method approach

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  • Hertrich, Tobias Johannes
  • Brenner, Thomas

Abstract

In Europe, there is an increasing shortage of skilled workers and jobs remain vacant for long periods of time. The shortage of skilled workers has become a key issue for various stakeholders, as it not only makes it difficult to recruit and retain employees, but it is also seen as a significant barrier to innovation for companies. So far, most analyses of skills shortage take place at company level. We supplement this with a regional perspective, because many measures, especially those of policy makers, are conducted on the regional level. We examine the impact of skills shortage on various aspects of regional economic development. Using the spatial vector autoregressive panel model, significant effects on gross domestic product (GDP), employment are found, but not on research and development (R&D) activities. Expert interviews are used to dig deeper into the reasons for these findings, showing that the disadvantages of skills shortages on innovativeness are perceived, but relate to the future or to the more general economic situation.

Suggested Citation

  • Hertrich, Tobias Johannes & Brenner, Thomas, 2024. "The impact of skills shortage on economic development in Germany – A mixed method approach," EconStor Preprints 289434, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:289434
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    References listed on IDEAS

    as
    1. Stefania Fiorentino & Amy K Glasmeier & Linda Lobao & Ron Martin & Peter Tyler, 2024. "‘Left behind places’: what are they and why do they matter?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 17(1), pages 1-16.
    2. Shah, C & Burke, G, 2005. "Skills Shortages: Concepts, Measurement and Policy Responses," Australian Bulletin of Labour, National Institute of Labour Studies.
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    More about this item

    Keywords

    skills shortage; regional development; regional innovativeness; mixed methods;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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