Estimating employment dynamics across occupations and sectors of industry

In this paper, we estimate the demand for workers by sector and occupation usingsystem dynamics OLS techniques to account for the employment dynamics dependenceacross occupations and sectors of industry. The short run dynamics are decomposed intointra and intersectoral dynamics. We find that employment by occupation and sectoris significantly affected by the short run intersectoral dynamics, using Dutch data forthe period 1988-2003. On average, these intersectoral dynamics account for 20􀀚 of thepredicted occupational employment.