Labor market tightness and individual wage growth: evidence from Germany

Publikation: Beitrag in FachzeitschriftForschungsartikelBeigetragenBegutachtung

Beitragende

Abstract

It is often stated that certain occupations in Germany, because of “Demographic Change “, are dwindling, implying a labor shortage. We investigate the 10-year wage growth of young employees entering the labor market in different occupations. Our findings suggest that regional labor market tightness in occupational fields significantly explains wage growth. Individuals who start their careers in a tighter labor market enjoy higher wage growth than workers in more relaxed labor markets. We identify some occupational fields where the effect is especially strong, such as several engineering groups, IT occupations, technicians, and some commercial occupations. Interestingly, health-care occupations reveal a reverse relation.

Details

OriginalspracheEnglisch
Aufsatznummer16
FachzeitschriftJournal for labour market research
Jahrgang56
Ausgabenummer1
PublikationsstatusVeröffentlicht - Dez. 2022
Peer-Review-StatusJa

Externe IDs

ORCID /0000-0002-8909-4861/work/149081759

Schlagworte

Schlagwörter

  • Demographic change, J31 (Wage Level and Structure, Wage Differentials), J44 (Professional Labor Markets, Occupational Licensing), Labor shortages, Occupation-specific wage curve, R23 (Regional labor markets), Wage growth