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Varying Youth Cohort Effects on Regional Labour Market Outcomes in Germany

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  • de Graaff, Thomas

    (Vrije Universiteit Amsterdam)

  • Ozgen, Ceren

    (University of Birmingham)

  • Roth, Duncan H.W.

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

We assess how changes in youth cohort sizes effect employment rates in German labour market regions. Replicating the conventional approach, we estimate that a percentage increase in the youth share reduces regional employment rates by −0.2%. We challenge the assumption that cohort size effects are homogenous across space and find robust evidence that the negative effect of youth cohort size is more pronounced in the labour markets of metropolitan regions. These results suggest an upward pressure on urban regional employment rates as a result of the projected decrease in the size of the German youth share.

Suggested Citation

  • de Graaff, Thomas & Ozgen, Ceren & Roth, Duncan H.W., 2018. "Varying Youth Cohort Effects on Regional Labour Market Outcomes in Germany," IZA Discussion Papers 11932, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11932
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    References listed on IDEAS

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    More about this item

    Keywords

    employment rate; youth share; Germany; regional heterogeneity;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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