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What drives the vacancy rate for information technology workers?

  • Falk, Martin

This paper provides empirical evidence on both the magnitude and determinants of unfilled positions for information technology workers using cross-sectional data on 4150 German firms. Vacancies are defined as unfilled positions excluding those created by replacement needs during the first half of the year 2000. The share of unfilled positions created by replacement needs is only about 20 percent, indicating that high turnover rates are not the main reason for high vacancy rates. The adjusted job vacancy rate for ICT workers varies between 5.7 percent in the ICT sector and 6.7 percent in the non-ICT sector. The results of a generalized tobit model show that the adjusted vacancy rate mainly depends on the firm size, the share of ICT workers and actions taken in the past to solve the ICT worker shortage but not on the diffusion of ICT. In the ICT sector, the decision made in the past to train apprentices in the new ICT occupations seems to have reduced the current vacancy rate. In the non-ICT sector, a successful strategy to solve the ICT worker shortage appears to be increased internal training. Finally, in the non-ICT sector, the common practice of completely outsourcing software programming significantly reduces the probability of unfilled positions.

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File URL: http://econstor.eu/bitstream/10419/24465/1/dp0143.pdf
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 01-43.

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Date of creation: 2001
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Handle: RePEc:zbw:zewdip:5398
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  1. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential," Econometric Society World Congress 2000 Contributed Papers 0859, Econometric Society.
  2. Haskel, Jonathan & Martin, Christopher, 2001. "Technology, Wages, and Skill Shortages: Evidence from UK Micro Data," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 642-58, October.
  3. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
  4. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-10, November.
  5. Abraham, Katharine G, 1983. "Structural-Frictional vs. Deficient Demand Unemployment: Some New Evidence," American Economic Review, American Economic Association, vol. 73(4), pages 708-24, September.
  6. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
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