Prof. Michael J. Böhm

Structural Change, Worker Reallocation, and Wage Inequality

Michael Böhm’s research examines how firms and workers respond to technological change and other shifts in labour demand, and how these adjustment processes shape employment and wage inequality. During his visit to CES, he will focus on the joint project “Heterogeneity and Aggregation in Labour Market Adjustment” with Ben Etheridge and Amaia Irastorza-Fadrique. The project studies how workers differ in their responses to labour market shocks and how these heterogeneous responses translate into aggregate employment adjustment. In related work, Böhm plans to examine how worker flows across sectors interact with regional industry structures and simultaneous pressures from digitalization, international competition, and the transition toward a low-carbon economy. The aim is to identify which regions and groups of workers face particularly limited or low-quality employment alternatives.

Other work examines why workers may underestimate employment and earnings opportunities in other locations, and how such beliefs affect regional adjustment. Another line of research studies labour-demand networks and firms’ efforts to build connections to other employers in order to recruit workers, with implications for firm growth, wage setting, and adjustment to shocks.

On 3 November, Böhm will present “Heterogeneity and Aggregation in Labour Market Adjustment” at the LMU Empirical Economics Seminar. He will also teach a three-part CES Lecture Series entitled “Structural Trends in Jobs and Wage Inequality.” The lectures cover imperfect competition and firms’ role in wage setting, the effects of technological change on job structure, and workers’ reallocation across occupations and sectors.

Throughout his visit, Böhm looks forward to discussing these projects with faculty and students at CES, LMU, and the ifo Institute, receiving feedback on his ongoing work, and exploring new research ideas and potential collaborations.

Michael Böhm is Professor of Empirical Economics at TU Dortmund University. He holds a PhD in Economics from LSE.