Tuesday, 3 April 2012

Occupational and Locational Substitution: Measuring the Effect of Occupational and Regional MobilityQ

an article by Alisher Aldashev (International School of Economics, Kazakh-British Technical University, Kazakhstan) published in LABOUR Volume 26 Issue 1 (March 2012)


The paper analyses the effects of occupational and regional mobility on the matching rate using monthly panel data disaggregated at the regional and occupational level.

The main contribution of the paper is to measure the effect of substitutability between vacancies in different occupations, and vacancies in different regions on the matching rate. The estimates indicate higher regional mobility in West Germany but higher occupational mobility in East Germany.

The results show that if occupations were perfect substitutes, then the number of matches could increase by 5–9 per cent. Perfect regional mobility would increase matchings by 5–15 per cent. It is also shown that partial aggregation causes a downward bias in substitutability estimates.

JEL Keywords
J62 Job, Occupational, and Intergenerational Mobility
J63 Turnover; Vacancies; Layoffs
R23 Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
J61 - Geographic Labor Mobility; Immigrant Workers

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