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Labor force aging and the composition of regional human capital

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  • Prenzel, Paula
  • Iammarino, Simona

Abstract

Human capital investments are frequently suggested as a policy measure to cope with smaller and older labor 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 article analyzes how aging is related to the regional composition of human capital for German regions between 2000 and 2010. The findings show that labor force aging is associated with lower educational attainment and that older labor forces have higher shares of traditional vocational degrees. On a national level, education expansion still sufficiently compensates for the effects of population aging, but regional human capital composition shows distinct trends.

Suggested Citation

  • Prenzel, Paula & Iammarino, Simona, 2021. "Labor force aging and the composition of regional human capital," LSE Research Online Documents on Economics 108600, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:108600
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    More about this item

    Keywords

    demographic change; human capital; regional development; ES/M008436/1; 1378766;
    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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