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Ageing labour: How does demographic change affect regional human capital?

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  • Paula Prenzel
  • Simona Iammarino

Abstract

Human capital investments are frequently suggested as policy measure to cope with smaller and older labour forces caused by demographic change across Europe. However, the availability and composition of human capital is fundamentally intertwined with demographic structures, especially at a regional level. This paper analyses how ageing is related to the regional composition of human capital for 332 German regions between 1996 and 2010. The findings show that labour force ageing is associated with lower educational attainment, and that older labour forces have higher shares of traditional vocational degrees. On a national level, education expansion still sufficiently compensates for the effects of population ageing, but regional human capital composition shows distinct trends.

Suggested Citation

  • Paula Prenzel & Simona Iammarino, 2018. "Ageing labour: How does demographic change affect regional human capital?," Papers in Evolutionary Economic Geography (PEEG) 1832, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2018.
    • Handle: RePEc:egu:wpaper:1832
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    More about this item

    Keywords

    demographic change; human capital; regional labour markets; regional development;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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