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Regional decomposition in age-group unemployment dynamics in Germany

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  • Carsten Ochsen

    (University of Applied Labour Studies: Hochschule der Bundesagentur für Arbeit)

Abstract

This article analyzes age-group-related differences in the risk of losing a job and the chance to find new employment using regional administrative data for Germany. I also consider flows between inactivity (out of the labor force) and unemployment to examine the relative contributions of labor market flows to different age-group unemployment dynamics. Inactivity and activity flows account for about 23% (and 83% for the youth) of unemployment dynamics, and contributions of separation (11%-50%) and job finding (5%-30%) vary with age-groups. Counties with a larger share of the labor force youth have high dynamics and very low unemployment rates. In contrast, regions with a smaller percentage of youth experience twice as large unemployment rates. Overall, the results provide strong evidence for decreasing regional labor market dynamics when the share of older workers increases.

Suggested Citation

  • Carsten Ochsen, 2024. "Regional decomposition in age-group unemployment dynamics in Germany," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(4), pages 1443-1476, April.
    • Handle: RePEc:spr:anresc:v:72:y:2024:i:4:d:10.1007_s00168-023-01248-9
    DOI: 10.1007/s00168-023-01248-9
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    More about this item

    JEL classification:

    • 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
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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