Labor market tightness and individual wage growth: evidence from Germany
Research output: Contribution to journal › Research article › Contributed › peer-review
Contributors
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
Original language | English |
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Article number | 16 |
Journal | Journal for labour market research |
Volume | 56 |
Issue number | 1 |
Publication status | Published - Dec 2022 |
Peer-reviewed | Yes |
External IDs
ORCID | /0000-0002-8909-4861/work/149081759 |
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Keywords
ASJC Scopus subject areas
Keywords
- 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