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Labor Force Aging and the Composition of Regional Human Capital

2021/03/15 by Paula Prenzel, Simona Iammarino · 1 citation
Social Sciences · Economics, Econometrics and Finance · #Regional Development and Policy #Regional Economics and Spatial Analysis #Migration, Aging, and Tourism Studies

paper · doi:10.1080/00130095.2021.1885294

Abstract

Human capital investments are frequently suggested as a policy measure to cope with smaller and older labor forces caused by demographic change across Europe. However, the availability and composition of human capital is fundamentally intertwined with demographic structures, especially at a regional level. This article analyzes how aging is related to the regional composition of human capital for German regions between 2000 and 2010. The findings show that labor force aging is associated with lower educational attainment and that older labor forces have higher shares of traditional vocational degrees. On a national level, education expansion still sufficiently compensates for the effects of population aging, but regional human capital composition shows distinct trends.

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