Published by Patrick Mutisya · 8 days ago
To understand the causes of changes in the occupational and geographical mobility of labour.
Higher levels of education and vocational training increase the skill set of workers, making it easier to switch occupations.
Automation and new technologies can render some occupations obsolete while creating demand for new skills.
Better access to information about job vacancies and required qualifications reduces uncertainty and encourages switching.
Significant differences in wages between occupations provide an incentive to retrain and move to higher‑paying jobs.
Licensing requirements, professional qualifications and trade union rules can either facilitate or restrict occupational movement.
Improved roads, railways, and public transport reduce the cost and time of moving.
Availability and affordability of housing in different regions affect willingness to relocate.
Strong family networks or community ties can act as a barrier to moving.
Higher wages in certain regions attract workers from lower‑paying areas.
Policies such as relocation grants, tax incentives, or restrictions on internal migration influence movement.
Several inter‑related developments have altered both occupational and geographical mobility in recent decades:
| Change | Impact on Occupational Mobility | Impact on Geographical Mobility |
|---|---|---|
| Expansion of tertiary education | More workers acquire transferable skills, facilitating job switches. | Graduates are often willing to relocate to university towns or graduate‑job hubs. |
| Digitalisation & remote work | New occupations (e.g., data analysis, digital marketing) emerge; workers can up‑skill online. | Remote work reduces the need for physical relocation, but also creates “digital hubs” that attract talent. |
| Global supply‑chain integration | Demand for specialised technical skills rises, prompting retraining. | Production shifts to regions with lower labour costs, prompting internal migration toward industrial clusters. |
| Policy reforms (e.g., deregulation of professions) | Lower barriers to entry in previously protected occupations. | Relaxed residency requirements encourage movement across regions. |
| Improved transport & logistics | Facilitates commuting, allowing workers to take jobs farther from home without full relocation. | Reduces travel time, making distant regions more accessible for permanent moves. |
Workers compare expected utility from staying in their current occupation/location with the utility from moving. A simplified representation can be expressed as:
\$U{move}=E(W{new})-C_{move}\$
where \$E(W{new})\$ is the expected wage (including non‑monetary benefits) in the new occupation or region, and \$C{move}\$ represents the total cost of moving (financial, psychological, opportunity cost). A worker will move if \$U{move}>U{stay}\$.