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Regional labor markets and aging in Germany

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  • Ochsen, Carsten

Abstract

This paper analyzes how the aging labor force aþects the unemployment rate at the regional level in Germany. A theoretical model of equilibrium unemployment with spatial labor market interactions is used to study the eþects of age-related changes in job creation and job destruction. Using data for 343 districts, we then examine empirically the consequences of an aging labor force for the local labor markets in Germany. We apply diþerent estimation techniques to a spatial and time dynamic panel data model. According to the estimates, aging causes an increase in job destruction. In addition, aging in the local labor market increases job creation, while the spatial aging eþect on job creation in the local district is negative.

Suggested Citation

  • Ochsen, Carsten, 2009. "Regional labor markets and aging in Germany," Thuenen-Series of Applied Economic Theory 102, University of Rostock, Institute of Economics.
    • Handle: RePEc:zbw:roswps:102
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    Cited by:

    1. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2013. "Do small labor market entry cohorts reduce unemployment?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(15), pages 379-406.
    2. Pohl, Carsten, 2013. "Demografie, Erwerbsbeteiligung und Erwerbslosigkeit in Nordrhein-Westfalen : Analyse der Zusammenhänge zwischen 1996 und 2011," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Nordrhein-Westfalen 201301, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Fuchs, Michaela & Pohl, Carsten & Sujata, Uwe & Weyh, Antje, 2013. "Entwicklung der Erwerbslosigkeit in Thüringen : welche Rolle spielt der demografische Wandel?," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 201301, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Ademola Obafemi Young, 2021. "Cohort Size and Unemployment Rate: New Insights from Nigeria," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(1), pages 122-151, January.
    5. repec:hum:wpaper:sfb649dp2010-054 is not listed on IDEAS
    6. Michaela Fuchs & Antje Weyh, 2014. "Demographic change and unemployment in East Germany: how close are the ties?," ERSA conference papers ersa14p220, European Regional Science Association.
    7. Lottmann, Franziska, 2012. "Spatial dependencies in German matching functions," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 27-41.
    8. Henseke, Golo & Tivig, Thusnelda, 2013. "Alterung in Berufen: Der Beitrag ökonomischer Einflüsse," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80001, Verein für Socialpolitik / German Economic Association.
    9. Peter Huber, 2010. "Teilbericht 2: Auswirkungen auf das Arbeitskräfteangebot und den Arbeitsmarkt," WIFO Studies, WIFO, number 41127, March.
    10. Fuchs, Michaela & Pohl, Carsten & Sujata, Uwe & Weyh, Antje, 2013. "Entwicklung der Erwerbslosigkeit in Sachsen : welche Rolle spielt die Alterung der Bevölkerung?," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen 201302, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2011. "Do smaller labour market entry cohorts really reduce German unemployment?," ERSA conference papers ersa10p658, European Regional Science Association.
    12. Michaela Fuchs, 2016. "Unemployment decline in East Germany: the role of demography," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(2), pages 145-168, October.
    13. Schulze, Franziska, 2010. "Spatial dependencies in German matching functions," SFB 649 Discussion Papers 2010-054, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    14. Garloff, Alfred & Roth, Duncan, 2016. "Regional age structure and young workers' wages," IAB-Discussion Paper 201606, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Fuchs, Michaela & Weyh, Antje, 2014. "Demography and unemployment in East Germany : how close are the ties?," IAB-Discussion Paper 201426, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Fuchs, Michaela & Pohl, Carsten & Sujata, Uwe & Weyh, Antje, 2013. "Entwicklung der Erwerbslosigkeit in Sachsen-Anhalt : welche Rolle spielt die Alterung der Bevölkerung?," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 201302, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Regional Unemployment; Vacancies and Separations; Job Creation; Regional Mobility; Spatial Interactions and Matching; Aging of the Labor Force;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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