Supply and Demand of Skilled Workers in Cities and the Role of Industry Composition

October 25th, 2014
in econ_news

from the Philadelphia Fed

A study provides new insight into how both supply and demand for high-skilled workers increase relative to low-skilled workers in cities and how the demand for high-skilled workers increases faster with city size relative to supply. While tracking decreasing demand for skilled workers in different industries, the study finds that within-industry changes in skilled-labor shares drive increased demand for educated workers in cities.

Follow up:


The share of high-skilled workers in U.S. cities is positively correlated with city size, and this correlation strengthened between 1980 and 2010. Furthermore, during the same time period, the U.S. economy experienced a signi cant structural transformation with regard to industrial composition, most notably in the decline of manufacturing and the rise of high- skilled service industries.

The estimates imply that both supply and demand of high-skilled labor have increased over time in big cities. In addition, demand for skilled labor in large cities has increased somewhat within all industries. However, this aggregate increase in skill demand in cities is highly concentrated in a few industries. The finance, insurance, and real estate sectors alone account for 35 percent of the net change over time.

[click on image to read the entire study]

Source: http://www.philadelphiafed.org/research-and-data/publications/working-papers/2014/wp14-32.pdf









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved