The supply of new engineers in Germany

Michael Neugart

No FS I 00-209, Discussion Papers, Research Unit: Labor Market Policy and Employment from WZB Berlin Social Science Center

Abstract: We estimate a labor supply model with German data on engineering enrollments and starting salaries. In one model agents have backward looking expectations, in the other rational expectations on future wages. Only the model with backward looking expectations delivers significant coefficients with signs in accordance with out theoretical model. Lagged enrollments as right hand side variables improve the fit of our model. The latter suggests the need for a theory of dynamic labor supply. Supply effects through changing sizes of cohorts do not explain variations in enrollments. In addition, we find that welfare improvements through the provision of information on future wages are considerable.

Keywords: labor supply; engineers; enrolments; occupational choice; naïve expectations; rational expectations (search for similar items in EconPapers)
JEL-codes: J22 J24 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (5)

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