Blocked Pipes: The Economic Consequence of Skilled Worker Shortages
DOI:
https://doi.org/10.33423/jabe.v26i3.7137Keywords:
business, economics, labor market, skilled labor, employment, skills gapAbstract
The thinning of the supply of skilled labor is having major negative implications on the economy. This research explores the “skilled labor gap” by examining the plumbing industry and quantifying the economic value lost through inefficiencies and labor premiums. The analysis utilizes state-level panel data for the years 2010 to 2018, employing both a linear OLS model of pooled data and a random effects regression model to determine the relationship between the number of plumbers and the price of plumbing services (proxied in plumber wages). Price effects are modeled across industries to determine the effects on the overall economy.
References
Alessandrini, M., & Winter, R. (2014). Systemic gender barriers in the building and construction industry: Co-preneurs as managers. https://doi.org/10.13140/2.1.4262.7204
Bennett, J., & McGuinness, S. (2009, March). Assessing the impact of skill shortages on the productivity performance of high-tech firms in Northern Ireland. Applied Economics, 41(6), 727–737. https://doi.org/10.1080/00036840601007450
Business Round Table. (1983, January). More construction for the money: Summary report of the Construction Industry Cost Effectiveness Project. Retrieved from https://kcuc.org/wp-content/uploads/2013/11/More-Construction-for-the-Money.pdf
Cappelli, P.H. (2015, March 1). Skill gaps, skill shortages, and skill mismatches: Evidence and arguments for the United States. ILR Review, 68(2), 251–290. https://doi.org/10.1177/0019793914564961
Chini, A.R., Brown, B.H., & Drummond, E.G. (n.d.). Causes of the construction skilled labor shortage and proposed solutions. ASC Proceedings of the 35th Annual Conference, pp. 187–196. Retrieved December 19, 2022, from http://ascpro0.ascweb.org/archives/1999/chini99.htm
Farrington, R. (2022, February 21). Trade schools vs. traditional college: What you should know. Forbes. Retrieved from https://www.forbes.com/sites/robertfarrington/2022/02/21/trade-schools-vs-traditional-college-what-you-should-know/?sh=57c8d92b7638
Horbach, J., & Rammer, C. (2022, July 3). Skills shortage and innovation. Industry and Innovation, 29(6), 734–759. https://doi.org/10.1080/13662716.2021.1990021
Kashiwagi, D.T., & Massner, S. (2002). Solving the construction craftperson skill shortage problem through construction undergraduate and graduate education. ASC Proceedings of the 38th Annual Conference, pp. 165–176. Retrieved December 19, 2022, from http://ascpro0.ascweb.org/archives/cd/2002/pro2002/2002/Kashiwagi02c.htm
McCollough, J., Bayramoglu, M., & Maio, H. (2018, January). Transitioning into a ‘throwaway planet’. International Journal of Consumer Studies, 42(1), 1–12.
MIG, Inc. (2000, June). IMPLAN Professional: Users guide, analysis guide, data guide (Version 2.0).
NAHB. (2021, November 15). Record share of NAHB members report labor shortages. Retrieved from https://eyeonhousing.org/2021/11/record-share-of-nahb-members-report-labor-shortages/
Stasz, C. (n.d.). Efforts to improve the quality of vocational education in secondary schools: Impact of federal and state policies.
St-Esprit, M. (2019, March 6). The stigma of choosing trade school over college. The Atlantic. Retrieved from https://www.theatlantic.com/education/archive/2019/03/choosing-trade-school-over-college/584275/
Stockard, S. (2019). Workforce development – Facing a shortage of skilled labor. Economic Development Journal, 18(3).
Sutcher, L., Darling-Hammond, L., & Carver-Thomas, D. (2019). Understanding teacher shortages: An analysis of teacher supply and demand in the United States. Education Policy Analysis Archives, 27(35). https://doi.org/10.14507/epaa.27.3696
The White House. (2021, December 16). FACT SHEET: The Biden-Harris lead pipe and paint action plan. Retrieved from https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/16/fact-sheet-the-biden-harris-lead-pipe-and-paint-action-plan/
Weyers, R. (2019, January 10). The skilled labor shortage: Causes, costs & COVID-19. Conger Industries Inc. Retrieved from https://www.conger.com/skilled-labor-shortage/
Williams, T.E., Jr., Satiani, B., Thomas, A., & Ellison, E.C. (2009). The impending shortage and the estimated cost of training the future surgical workforce. Annals of Surgery, 250(4), 590. https://doi.org/10.1097/SLA.0b013e3181b6c90b
