Occupational and locational substitution : measuring the effect of occupational and regional mobility

Aldashev, Alisher

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URL: http://ub-madoc.bib.uni-mannheim.de/2351
URN: urn:nbn:de:bsz:180-madoc-23518
Document Type: Working paper
Year of publication: 2009
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J61 R23 J63 J62 ,
Subject headings (SWD): Deutschland , Deutschland <Westliche Länder> , Deutschland <Östliche Länder> , Arbeitsmobilität , Regionale Mobilität , Beruf , Faktorsubstitution
Keywords (English): Matching function , constant elasticity of substitution , spatial correlation , occupational and regional mobility , nonlinear least squares , GMM
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.
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