Dynamic Modeling of Labor Market Mobility and Human Capital Accumulation

Projektinformationen

DYMOLAMO

ID Finanzhilfevereinbarung: 804989

DOI

10.3030/804989

Projekt abgeschlossen

EK-Unterschriftsdatum 11 Oktober 2018

Startdatum 1 November 2018

Enddatum 31 Januar 2025

Finanziert unter

• EXCELLENT SCIENCE - European Research Council (ERC)

Gesamtkosten

€ 1 400 250,00

EU-Beitrag

€ 1 400 250,00

Koordiniert durch

AGENCIA ESTATAL CONSEJO SUPERIOR DE INVESTIGACIONES CIENTIFICAS
Spain

Periodic Reporting for period 4 - DYMOLAMO (Dynamic Modeling of Labor Market Mobility and Human Capital Accumulation)

Berichtszeitraum: 2023-05-01 bis 2025-01-31

Zusammenfassung vom Kontext und den Gesamtzielen des Projekts

In today’s globalized world, labor mobility is central to political and economic policy debates. Policymakers face complex challenges in designing immigration and internal mobility policies, including managing selective immigration, promoting integration, and enhancing job access for disadvantaged groups. A key issue is understanding how migration affects career paths and human capital development.
The ERC-funded project Dynamic Modeling of Labor Market Mobility and Human Capital Accumulation (DYMOLAMO) tackled this by analyzing how labor mobility interacts with human capital accumulation and labor market institutions. Its goal was to create a comprehensive framework to guide economic policy.
DYMOLAMO addressed three main areas. First, it explored how contract forms and technological progress affect geographic and occupational mobility, especially in segmented labor markets. It examined whether temporary jobs act as career stepping-stones or traps with low wages and limited skill growth, and how different induviduals adjust to technical change differently at different points of their life-cicle.
Second, the project studied the economic effects of immigration policies, focusing on their impact on native employment, wage inequality, and productivity. It assessed how skill-based visas and quotas influence labor market outcomes and wage disparities.
Third, it analyzed immigrant assimilation, identifying human capital investments and cohort competition as key factors. It examined why recent immigrant groups sometimes face slower integration, considering factors like economic shifts and competition within immigrant communities.
To explore these issues, DYMOLAMO developed dynamic models that included job search frictions, skill development, and economic shocks. The team also introduced faster estimation techniques, enabling complex simulations to assess policy impacts more accurately.
The project significantly advanced labor economics by offering tools to design policies that improve job stability, reduce inequality, and support immigrant integration. Through extensive outreach, its findings influenced policy debates across Europe, ensuring broad societal relevance.
In sum, DYMOLAMO provided vital insights into how mobility and immigration shape labor markets, offering practical recommendations for more inclusive and effective economic policies.

Arbeit, die ab Beginn des Projekts bis zum Ende des durch den Bericht erfassten Berichtszeitraums geleistet wurde, und die wichtigsten bis dahin erzielten Ergebnisse

From inception to completion, the DYMOLAMO project achieved significant progress across all research areas, generating major academic outputs, methodological advances, and policy-relevant insights.
The team worked on 46 research papers, many of which are published or under review in top journals, including very top ones like the American Economic Review and Review of Economic Studies. Key topics include gender and immigration, minimum wages, job search dynamics, dual labor markets, and immigrant assimilation. Several papers are in advanced stages, offering new insights into labor market institutions and economic mobility.
Principal Investigator Joan Llull co-edited a major academic volume on immigration and macroeconomics, broadening the impact of the research. The project also made major strides in methodology, developing econometric tools to efficiently estimate complex dynamic models, improving the accuracy of policy simulations.
DYMOLAMO’s findings have shaped debates on high-skilled immigration, wage structures, and assimilation dynamics. These insights offer actionable guidance for policymakers. The team actively shared results through workshops and conferences, including during the COVID-19 pandemic, and engaged directly with government bodies, such as a Spanish Ministry working group on immigrant integration.
The project also supported career development, with junior researchers securing positions at institutions like the University of Bristol, OECD, and Universitat de Barcelona among others. The PI’s academic standing grew through editorial work and advisory roles, enhancing the project's visibility.
Additionally, preliminary research from DYMOLAMO helped secure further funding, including an ERC Consolidator Grant for the PI and support from Fundació La Caixa, ensuring the continued expansion and impact of the project's research agenda.

Fortschritte, die über den aktuellen Stand der Technik hinausgehen und voraussichtliche potenzielle Auswirkungen (einschließlich der bis dato erzielten sozioökonomischen Auswirkungen und weiter gefassten gesellschaftlichen Auswirkungen des Projekts)

The DYMOLAMO project has made major contributions to labor economics by addressing key methodological and conceptual challenges related to labor mobility, human capital, and immigrant integration. It developed advanced dynamic equilibrium models that reflect real-world labor market features—like job search frictions, dual contracts, and varied responses to shocks—allowing for more accurate policy analysis.
A major breakthrough was the creation of efficient estimation methods for structural models, vastly improving computational feasibility. These tools enable large-scale policy simulations and set new methodological standards in structural labor economics.
Empirical findings also expanded existing knowledge. Research showed that high-skilled immigration not only affects native workers through direct competition but also boosts innovation and productivity, especially benefiting highly skilled natives. This challenges conventional thinking and emphasizes the broader economic impact of skilled migration.
DYMOLAMO also revealed new insights into immigrant assimilation. The project identified increasing immigrant cohort sizes and labor market competition as a key factor slowing wage convergence, pointing to the need for policies that also address labor market dynamics within immigrant groups.
The project further examined dual labor markets, showing how temporary contracts can harm long-term career stability and fuel wage inequality. These results support reforms in employment protection and contract regulation to promote fairer labor outcomes.
With additional papers in progress, DYMOLAMO is set to further influence research on immigration, labor policy, and human capital. Overall, it has pushed the boundaries of labor economics, providing tools and insights that will guide both academic work and policy development well into the future.

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