Abstract for: Understanding and Alleviating Future Skilled Labor Shortage in Norway
The objective of the study is to conduct an exploratory study of the causes that constitute to skilled labor shortage in Norway. Subsequently, we formulate policy to increase skilled labor supply. We apply system dynamics methodology to model the causal relationship between individuals’ motivation to tertiary education participation, from wages and job opportunity perspective. From the simulation, we find that if tertiary education participation persists as it is, skilled labor shortage will increase from 40,000 in 1994 to 190,000 skilled laborers in 2050, which accounts for 11% of the total skilled labor force. With the introduction of voluntary-based internship program into current tertiary curriculum, promotion of online tertiary education, and encouragement of more foreign tertiary students to study in the country, total university students in 2050 will be 1.30% higher, domestic skilled labor force will be lifted 2.5%, and skilled labor shortage will be reduced by 35%.