Regional decomposition in age-group unemployment dynamics in Germany

Carsten Ochsen

The Annals of Regional Science, 2024, vol. 72, issue 4, No 14, 1443-1476

Abstract: Abstract This article analyzes age-group-related differences in the risk of losing a job and the chance to find new employment using regional administrative data for Germany. I also consider flows between inactivity (out of the labor force) and unemployment to examine the relative contributions of labor market flows to different age-group unemployment dynamics. Inactivity and activity flows account for about 23% (and 83% for the youth) of unemployment dynamics, and contributions of separation (11%-50%) and job finding (5%-30%) vary with age-groups. Counties with a larger share of the labor force youth have high dynamics and very low unemployment rates. In contrast, regions with a smaller percentage of youth experience twice as large unemployment rates. Overall, the results provide strong evidence for decreasing regional labor market dynamics when the share of older workers increases.

JEL-codes: J21 J63 J64 R23 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00168-023-01248-9

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