Occupations as labour market institutions

Abstract

"We define occupations as labour market institutions that link the education system with the labour market and argue that occupations represent ideal-typical requirement profiles of job vacancies. On this theoretical basis, we elaborate distinct mechanisms how occupational institutions and their regulation define occupational qualifications and influence both access to occupations and mobility between occupations. We argue that the extent of occupational regulation varies considerably between occupations. Next, we analyse the labour market effects induced by occupational regulation. We illustrate that regulatory effects are twofold. First, occupational regulation enhances information for both employers and job seekers and thus reduces uncertainty in the matching process. Second, it creates 'closed shops' by restricting access to occupations. To date, studies that include both positive and negative effects of occupational regulation are scarce. We fill this gap by examining two central labour market processes: job matching and occupational closure. Empirically, we use an innovative indicator for occupational regulation and test our hypotheses with German data. The results show that the more pronounced the regulation of an occupation is the less effort the contracting parties must expend within the matching process. By contrast, transitioning into a new occupation become less likely the more an occupation is regulated." (Author's abstract, IAB-Doku) ((en))

Cite article

Damelang, A., Stops, M. & Abraham, M. (2018): Occupations as labour market institutions. Occupational regulation and its effects on job matching and occupational closure. In: Soziale Welt, Vol. 69, No. 4, p. 406-426. DOI:10.5771/0038-6073-2018-4-406