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What drives the vacancy rate for information technology workers?

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  • Falk, Martin

Abstract

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.

Suggested Citation

  • Falk, Martin, 2001. "What drives the vacancy rate for information technology workers?," ZEW Discussion Papers 01-43, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:5398
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    File URL: https://www.econstor.eu/bitstream/10419/24465/1/dp0143.pdf
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    References listed on IDEAS

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    1. 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 705-710, November.
    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 642-658, October.
    3. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
    4. Haisken-DeNew, John P. & Schmidt, Christoph M., 1999. "Money for Nothing and Your Chips for Free? The Anatomy of the PC Wage Differential," IZA Discussion Papers 86, Institute for the Study of Labor (IZA).
    5. 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, Oxford University Press, vol. 117(1), pages 339-376.
    6. Abraham, Katharine G, 1983. "Structural-Frictional vs. Deficient Demand Unemployment: Some New Evidence," American Economic Review, American Economic Association, vol. 73(4), pages 708-724, September.
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    Cited by:

    1. Engel, Dirk, 2002. "Welche Regionen profitieren von Venture Capital-Aktivitäten?," ZEW Discussion Papers 02-37, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    unbesetzte Stellen; IKT-Fachkräfte; Informationstechnologie; Unfilled positions; ICT workers; information technology;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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