IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/289434.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/289434/1/Skill-shortage_WP03_24.pdf
    Download Restriction: no
    ---><---

    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mangan, John & Trendle, Bernard, 2017. "Hard-to-fill vacancies: An analysis of demand side responses in the Australian state of Queensland," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 49-56.
    2. Antoni, Manfred & Janser, Markus & Lehmer, Florian, 2015. "The hidden winners of renewable energy promotion: Insights into sector-specific wage differentials," Energy Policy, Elsevier, vol. 86(C), pages 595-613.
    3. Tony Meagher & James Giesecke, 2008. "Population Ageing and Structural Adjustment," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(3), pages 227-247.
    4. Варшавская Е. Я. & Котырло Е. С., 2019. "Выпускники Инженерно-Технических И Экономических Специальностей: Между Спросом И Предложением," Вопросы образования // Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 98-128.
    5. Cardenas, J, 2020. "Possible uses of labour demand and supply information to reduce skill mismatches," Documentos de trabajo - Alianza EFI 18987, Alianza EFI.
    6. Ezzat Othman Ayman Ahmed & Sokkar Dana Ashraf, 2019. "Enhancing the performance of architectural design firms through addressing the gap of workforce skills in developing countries: a good-to-great approach," Organization, Technology and Management in Construction, Sciendo, vol. 11(1), pages 1911-1924, March.
    7. Sharma, Kishor & Oczkowski, Edward & Hicks, John, 2016. "Skill shortages in regional Australia: A local perspective from the Riverina," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 34-44.
    8. Werner Eichhorst & Corrado Giulietti & Martin Guzi & Michael J. Kendzia & Paola Monti & Tommaso Frattini & Peter Huber & Klaus Nowotny & Barbara Vandeweghe, 2011. "The Integration of Migrants and its Effects on the Labour Market," WIFO Studies, WIFO, number 42955, February.
    9. Healy, Joshua & Mavromaras, Kostas & Sloane, Peter J., 2011. "Adjusting to Skill Shortages: Complexity and Consequences," IZA Discussion Papers 6097, Institute of Labor Economics (IZA).
    10. Breugel, Gerla van, 2017. "Identification and anticipation of skill requirements: Instruments used by international institutions and developed countries," Documentos de Proyectos 42233, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Schwalje, Wes, 2012. "Rethinking How Establishment Skills Surveys Can More Effectively Identify Workforce Skills Gaps," MPRA Paper 37192, University Library of Munich, Germany.
    12. Henseke, Golo & Strohner, Benjamin & Tivig, Thusnelda, 2013. "Methodenreport Work & Age: Berufliche Alterungstrends und Fachkräfteengpässe," Thuenen-Series of Applied Economic Theory 130, University of Rostock, Institute of Economics.
    13. Monge-González, Ricardo & Zolezzi, Sandro, 2012. "Insertion of Costa Rica in Global Value Chains: A Case Study," IDB Publications (Working Papers) 4256, Inter-American Development Bank.
    14. Anneleen Vandeplas & Anna Thum-Thysen, 2019. "Skills Mismatch and Productivity in the EU," European Economy - Discussion Papers 100, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    15. Elena Varshavskaya & Elena Kotyrlo, 2019. "Engineering and Economics Graduates: Between Demand and Supply," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 98-128.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:289434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.