Spatial disparities in hiring problems: The role of firm characteristics, job features, and search channels

Abstract

"Against the backdrop of discussions about growing regional labour shortages, this study investigates spatial disparities in hiring problems using representative micro data on vacancies and establishments in Germany. Our results point to significant disparities that vary between location types along the urban-rural continuum depending on indicator. While establishments in rural areas receive less suitable applications and more often abandon hiring plans, firms in cities more often report problems related to the applicants’ qualification and wage expectations. Prevailing types of establishments and jobs explain an important part, but not all of the disparities. Evidence on concessions suggests, moreover, that employer responses to labour shortages differ depending on the location type. While establishments in urban areas are more likely to compromise on wages, concessions on qualification are more frequent outside big cities. However, rural establishments report problems related to applicants’ insufficient qualifications less often. Heterogenous hiring problems indicate that there is need for place-sensitive policies rather than place-based policies that focus on specific locations." (Author's abstract, IAB-Doku, © Elsevier) ((en))

Cite article

Fuchs, M., Niebuhr, A., Peters, J. & Sieglen, G. (2026): Spatial disparities in hiring problems: The role of firm characteristics, job features, and search channels. In: Papers in Regional Science, Vol. 105, No. 5. DOI:10.1016/j.pirs.2026.100170