The regulation of occupations and its impact on individual labour market outcomes

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In recent years, research about the influence of occupations on labor market processes and inequality has recovered rapidly in importance. Studies on occupational closure have revealed that occupations have different modes of regulations which impact the wage structure in the labor market. This literature, however, is limited to occupational closure processes; additionally, empirical indicators which operationalize the regulation of occupations more accurately are needed.Against this background, this project aims to investigate on the basis of new empirical indicators the effect of different levels of occupational regulation on closure as well as on general matching and mobility processes in the labor market. Specifically, we investigate the following research questions: First, does the regulation of occupations facilitate the matching process? And, secondly, do regulatory mechanisms restrict occupational mobility on the labor market, and if so, how and to what extent? Finally, what are the consequences of occupational regulation on individual labor market outcomes?For the empirical implementation we plan to use the IAB Job Vacancy Survey (EGS). The EGS is the only survey in Germany which provides representative and statistically valid data on matching processes. Secondly, we intend to use the Sample of Integrated Labor Market Biographies (SIAB). The SIAB is a two percent sample of all persons whose employment is subject to social security in Germany. Its large number of cases enables us to conduct meaningful analyses at the occupational level. Both data sets are especially suitable to answer the outlined research questions, but lack information on occupational regulation. Therefore, we supplement these data sets by indicators that measure the level of occupational regulation. We base our analyses on indicators describing the institutional features of occupations. To check their suitability with regard to our research questions we also want to integrate alternative measurements of occupational regulation.As a result, we expect to produce high-level publications contributing to the knowledge about occupational regulation on the one hand and labor market outcomes on the other. Secondly, we intend to provide insights into the operationalization of occupational regulations and its suitability for empirical labour market and inequality research. Third, the results will be valuable for labour market policy with regard to different modes of institutional arrangements of occupations.