Kostas Karamanis

Institute of Economic Analysis and Solidarity Economy,

University of Ioannina,

Hellenic Open University

E-mail: kkaraman@uoi.gr

ORCID 0000-0002-9828-128X

Analyzing employment by occupation across sectors in Greek labor market

Giorgios Kolias

Institute of Economic Analysis and Solidarity Economy,

University of Ioannina,

Hellenic Open University

E-mail: koliasg@uoi.gr

ORCID 0000-0002-0210-4845

Abstract. In this paper we investigate the trends in the number of employees by occupational category across the economy's main sectors. For the purpose of our study we use mixed-fixed and random coefficient modeling, taking unemployment, gross value added, employee compensation, and proxies for labor force participation rate as the determining factors. Using annual data from 2000 to 2018, we examine the effects of the determining factors on the share of workers by sector and occupation. Our econometric research shows that the regression coefficients vary between sectors and categories of occupation and the proposed model correctly estimates the dependent variable and the heterogeneous variation of the random effects. Our model can be used to identify occupations with current and future shortages across sectors as well as for assessment and anticipation of employment needs. This study's main contribution is the provision of a flexible and innovative econometric tool, with minimal data requirements, for investigating and assessing employment across economic activities over time. Moreover, in conjunction with other forecasting macroeconomic models, it can offer accurate forecasts for future levels and trends in employment.

Received: July, 2021

1st Revision: March, 2022

Accepted: June, 2022

DOI: 10.14254/2071-789X.2022/15-2/2

JEL Classification: C53, J01, J11

Keywords: occupation, employment, employment behavior, mixed fixed and random coefficient modeling