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• W2103669352 abstract "In this paper we study the effect of smaller labor market entry cohorts on (un)employment in Western Germany. From a theoretical point of view, decreasing cohort sizes may on the one hand reduce unemployment due to “inverse cohort crowding” or on the other hand increase unemployment if companies reduce jobs disproportionately. Consequently, the actual effect of cohort shrinking on (un)employment is an empirical question. For our investigation we use regional population data from the Federal Statistic al Office of Germany and (un)employment data from the Federal Employment Agency and the IAB for the years 1978 to 2008. We account for the likely endogeneity of cohort size d ue to migration of the (young) workforce, using lagged births as instruments. In addition, we allow for spatial autocorrelation across Western German regions. Our empirical analysis provides ambiguous news for the (Western) German labor market: small entry cohorts are indeed likely to decrease the overall unemployment rate and thus to improve the situation of job seekers. However, with regard to the employment rate our preferred model suggests th at employment is negatively affected by a decrease in the youth share." @default.
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• W2103669352 date "2010-01-01" @default.
• W2103669352 modified "2023-09-27" @default.
• W2103669352 title "Do smaller labour market entry cohorts really reduce German unemployment" @default.
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