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

23 Pages Posted: 25 Apr 2009

See all articles by Alisher Aldashev

Alisher Aldashev

ZEW – Leibniz Centre for European Economic Research

Date Written: 2009

Abstract

The paper analyzes effects of occupational and regional mobility on the matching rate using the monthly panel disaggregated on regional and occupational level. The main contribution of the paper is measuring the effect of substitutability between vacancies for different occupations and vacancies in different regions on matchings. 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, the number of matches could increase by 5-9%. Perfect regional mobility could increase matchings by 5-15%. It is also shown that partial aggregation causes a downward bias in substitutability estimates.

Keywords: Matching function, constant elasticity of substitution, spatial correlation, occupational and regional mobility, nonlinear least squares, GMM

JEL Classification: J62, J63, R23, J61

Suggested Citation

Aldashev, Alisher, Occupational and Locational Substitution: Measuring the Effect of Occupational and Regional Mobility (2009). ZEW - Centre for European Economic Research Discussion Paper No. 09-014, Available at SSRN: https://ssrn.com/abstract=1394354 or http://dx.doi.org/10.2139/ssrn.1394354

Alisher Aldashev (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
41
Abstract Views
848
PlumX Metrics