Abstract

I quantify the extent of mismatch of the unemployment rate between the period of 2000-2017 in Germany by using a dynamic stochastic labor market model. By developing indices out of this model it is possible to examine mismatch on a regional, occupational and industrial level. 

Furthermore the project analyzes which groups are concerned with mismatch the most. For this purpose the mismatch index is decomposed using a total differential and a standard law of motion for the ins and iuts of unemployment. Afterwards the different flows are calculated for different Age groups which allows to analyze to which extent mismatch unemployment is geerated by the inflow of younger vs. older workers.