Labour Markets Workshops
The Impact of Labour Demand Shocks when Occupational Labour Supplies are Heterogeneous
Ben Etheridge (University of Essex), joint with Michael J. Böhm and Aitor Irastorza-Fadrique
Tuesday 05 November 2024 12:55 - 14:00
SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH
About this event
We develop a tractable equilibrium model of the labour market, featuring heterogeneous labour supply elasticities across occupations that can be estimated in a baseline period using observed worker flows. We use this model to study the heterogeneous impact of subsequent demand shifts on wages and employment in Germany. We validate the estimated elasticities with external correlates, including occupational licensing and task distance. Cross-occupation effects, capturing the response to demand shifts in close substitute occupations, are particularly important for explaining the labour market's response to shocks. Overall, heterogeneous supply elasticities play a key role in explaining occupational changes over recent decades.
Participants are expected to adhere to the CEP Events Code of Conduct.
Directions
This event will take place in SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.
The building is labelled SAL on the LSE campus map. You can also find us on Google Maps. For further information, go to contact us.Labour Markets Workshops are part of the CEP's Labour Markets programme.