EconPapers    
Economics at your fingertips  
 

Demographic Aging and Employment Dynamics in German Regions: Modeling Regional Heterogeneity

Thomas Graaff (), Arribas-Bel, Daniel () and Ceren Ozgen ()
Additional contact information
Arribas-Bel, Daniel: University of Liverpool
Ceren Ozgen: University of Birmingham

No 10734, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Persistence of high youth unemployment and dismal labour market outcomes are imminent concerns for most European economies. The relationship between demographic ageing and employment outcomes is even more worrying once the relationship is scrutinized at the regional level. We focus on modelling regional heterogeneity. We argue that an average impact across regions is often not very useful, and that – conditional on the region's characteristics – impacts may differ significantly. We advocate the use of modelling varying level and slope effects, and specifically to cluster them by the use of latent class or finite mixture models (FMMs). Moreover, in order to fully exploit the output from the FMM, we adopt self-organizing maps to understand the composition of the resulting segmentation and as a way to depict the underlying regional similarities that would otherwise be missed if a standard approach was adopted. We apply our proposed method to a case-study of Germany where we show that the regional impact of young age cohorts on the labor market is indeed very heterogeneous across regions and our results are robust against potential endogeneity bias.

Keywords: youth cohorts; self-organizing maps; finite mixture models; employment; demographic aging; immigrant workers (search for similar items in EconPapers)
JEL-codes: J21 J61 J01 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-eur, nep-geo and nep-ure
Date: 2017-04
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in: Stough, R. et al. (eds.): Modelling Aging and Migration Effects on Spatial Labour Markets, Springer, 2018, 211 - 231

Downloads: (external link)
http://ftp.iza.org/dp10734.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp10734

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-10-11
Handle: RePEc:iza:izadps:dp10734