Consumer preferences and changes in the labour market

Addessi, William

;Sallusti, Federico

2024-01-01

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Abstract

Changes in per-capita income and demographic structure, intensification of cultural and product interchanges, increase in the variety of products, and new ways of experiencing consumption are a few of the phenomena that have significantly reshaped households’ consumption preferences for the different types of goods and services. These changes, affecting the composition of final consumption expenditure, contribute to determining the allocation and organisation of production processes and labour forces. For this reason, in this chapter, we explore the possible connections between changes in consumer preferences and the evolution of employment in terms of sectoral allocation and required skills. We show how consumer preferences can be elicited at the macroeconomic level, to what extent they influence consumption expenditure composition and, through this channel, the sectoral allocation of employment. Furthermore, we highlight in which sectors and for which skills consumer preference shifts might contribute to increase skill imbalances.