ifo Viewpoint
Higher Wages May Help Overcome the Shortage of Skilled Workers!
Clemens Fuest, Simon Jäger
ifo Institute, Munich, 2023
ifo Viewpoint No. 243
ifo Institute, Munich, 2023
ifo Viewpoint No. 243
![](https://www.ifo.de/DocImg/ifo-viewpoint-243.jpg?c=1689236938)
There is currently intense debate in many countries about a shortage of skilled workers. For instance in Germany, despite record employment figures, according to surveys by the ifo Institute, close to 50 percent of companies say they are constrained by a shortage of skilled workers - also an all-time high. From an economic perspective, there is a simple answer to shortages: higher prices.