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Future skill shortages in the U.S. economy?

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  • Neumark, David
  • Johnson, Hans
  • Mejia, Marisol Cuellar

Abstract

The impending retirement of the baby boom cohort represents the first time in the history of the United States that such a large and well-educated group of workers will exit the labor force. This could imply skill shortages in the U.S. economy. We develop near-term labor force projections of the educational demands on the workforce and the supply of workers by education to assess the potential for skill imbalances to emerge. Based on our formal projections, we see little likelihood of skill shortages emerging by the end of this decade. More tentatively, though, skill shortages are more likely as all of the baby boomers retire in later years, and skill shortages are more likely in the near-term in states with large and growing immigrant populations.

Suggested Citation

  • Neumark, David & Johnson, Hans & Mejia, Marisol Cuellar, 2013. "Future skill shortages in the U.S. economy?," Economics of Education Review, Elsevier, vol. 32(C), pages 151-167.
  • Handle: RePEc:eee:ecoedu:v:32:y:2013:i:c:p:151-167
    DOI: 10.1016/j.econedurev.2012.09.004
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    References listed on IDEAS

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    Cited by:

    1. Cho, Sungjin & Kam, Jihye & Lee, Soohyung, 2017. "Efficient Supply of Human Capital: Role of College Major," IZA Discussion Papers 10610, Institute of Labor Economics (IZA).
    2. Francis Green & Golo Henseke, 2016. "The changing graduate labour market: analysis using a new indicator of graduate jobs," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
    3. Neumark, David & Johnson, Hans & Mejia, Marisol Cuellar, 2013. "Future skill shortages in the U.S. economy?," Economics of Education Review, Elsevier, vol. 32(C), pages 151-167.

    More about this item

    Keywords

    Education; Skill; Shortages; Aging;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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