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Labor market tightness and individual wage growth: evidence from Germany

Author

Listed:
  • Brunow, Stephan

    (HdBA)

  • Lösch, Stefanie

    (TU Dresden)

  • Okhrin, Ostap

    (TU Dresden)

Abstract

"It is often stated that certain occupations in Germany, because of “Demographic Change “, are dwindling, implying a labor shortage. We investigate the 10-year wage growth of young employees entering the labor market in different occupations. Our findings suggest that regional labor market tightness in occupational fields significantly explains wage growth. Individuals who start their careers in a tighter labor market enjoy higher wage growth than workers in more relaxed labor markets. We identify some occupational fields where the effect is especially strong, such as several engineering groups, IT occupations, technicians, and some commercial occupations. Interestingly, health-care occupations reveal a reverse relation." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Suggested Citation

  • Brunow, Stephan & Lösch, Stefanie & Okhrin, Ostap, 2022. "Labor market tightness and individual wage growth: evidence from Germany," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-016.
    • Handle: RePEc:iab:iabjlr:v:56:i::p:a016
    DOI: 10.1186/s12651-022-00322-7
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    Cited by:

    1. is not listed on IDEAS
    2. Kroczek, Martin & Koch, Andreas, 2024. "The reaction of wages to skill shortage in nursing," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302406, Verein für Socialpolitik / German Economic Association.
    3. Lajos Tamás Szabó, 2025. "Correction: The effect of labour tightness on wages at the regional level in Central Europe," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 59(1), pages 1-1, December.

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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