IDEAS home Printed from https://ideas.repec.org/a/ags/aareaj/343011.html
   My bibliography  Save this article

Who will pay for workplace reforms in U.S. meat-processing plants? Simulation results from the USAGE model

Author

Listed:
  • Dixon, Peter B.
  • Rimmer, Maureen T.

Abstract

It is possible that COVID will trigger permanent changes in work practices that increase costs in U.S. meat-processing plants. These changes will be beneficial for the safety and economic welfare of meat-processing workers. However, they will have economic costs. In assessing reform options, policymakers seek guidance from analyses based on models embracing micro detail and an economy-wide perspective. In this paper, we use USAGE-Food, a highly disaggregated computable general equilibrium (CGE) model of the United States, to work out how additional processing costs would be distributed between consumers of meat products and farmers. We also calculate industry and macroeconomic effects. Despite modelling farmers as owning fixed factors, principally their own labour, we find that the farmer share in extra processing costs is likely to be quite moderate. Throughout the paper, we support simulation results with back-of-the-envelope calculations, diagrams and sensitivity analyses. These devices identify the mechanisms in the model and key data points that are responsible for the main results. In this way, we avoid the black-box criticism that is sometimes levelled at CGE modelling.

Suggested Citation

  • Dixon, Peter B. & Rimmer, Maureen T., 2022. "Who will pay for workplace reforms in U.S. meat-processing plants? Simulation results from the USAGE model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(02), January.
    • Handle: RePEc:ags:aareaj:343011
    DOI: 10.22004/ag.econ.343011
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/343011/files/Who%20will%20pay%20for%20workplace%20reforms%20in%20U.S..pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.343011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adams, Philip D., 2005. "Interpretation of results from CGE models such as GTAP," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 941-959, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beckman, Jayson & Burfisher, Mary & Mitchell, Lorraine & Arita, Shawn, 2021. "Hidden obstacles to trade: The case of the EU’s Ban on beef hormones," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1332-1343.
    2. Fugazza, Marco & Maur, Jean-Christophe, 2008. "Non-tariff barriers in CGE models: How useful for policy?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 475-490.
    3. Jing Han & Weilin Zhu & Chaofan Chen, 2023. "Identifying Emissions Reduction Opportunities in International Bilateral Emissions Trading Systems to Achieve China’s Energy Sector NDCs," IJERPH, MDPI, vol. 20(2), pages 1-24, January.
    4. Zhai, Fan, 2008. "Armington Meets Melitz: Introducing Firm Heterogeneity in a Global CGE Model of Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 575-604.
    5. Nong, Duy & Nguyen, Duong Binh & Nguyen, Trung H. & Wang, Can & Siriwardana, Mahinda, 2020. "A stronger energy strategy for a new era of economic development in Vietnam: A quantitative assessment," Energy Policy, Elsevier, vol. 144(C).
    6. Fæhn, Taran, 2015. "A shaft of light into the black box of CGE analyses of tax reforms," Economic Modelling, Elsevier, vol. 49(C), pages 320-330.
    7. Berrittella, Maria, 2012. "Modelling the labour market of minority ethnic groups," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 389-402.
    8. Nong, Duy, 2019. "Potential economic impacts of global wild catch fishery decline in Southeast Asia and South America," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 213-226.
    9. Nong, Duy & Simshauser, Paul & Nguyen, Duong Binh, 2021. "Greenhouse gas emissions vs CO2 emissions: Comparative analysis of a global carbon tax," Applied Energy, Elsevier, vol. 298(C).
    10. Curzel, Rosana & Silber, Simão Davi & Guilhoto, Joaquim José Martins, 2007. "Argentina, Brasil e Uruguai: um estudo dos impactos regionais da ALCA [Argentina, Brazil and Uruguay: a study of the regional impacts of ALCA]," MPRA Paper 54502, University Library of Munich, Germany.
    11. Leone Walters & Heinrich R. Bohlmann & Matthew W. Clance, 2016. "The Impact of the COMESA-EAC-SADC Tripartite Free Trade Agreement on the South African Economy," Working Papers 201669, University of Pretoria, Department of Economics.
    12. Jakub Boratyński & Jakub Borowski, 2012. "The long-term economic impact of the flat tax in Poland. CGE simulation under alternative assumptions," Bank i Kredyt, Narodowy Bank Polski, vol. 43(3), pages 5-30.
    13. George Verikios & Kevin Hanslow, 2009. "The Long-run Effects of Structural Change and the Treatment of International Capital Accumulation, Mobility and Ownership," Global Economic Review, Taylor & Francis Journals, vol. 38(3), pages 229-250.
    14. Dixon, Peter B. & Rimmer, Maureen T., 2013. "Validation in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1271-1330, Elsevier.
    15. Diamantis Koutsandreas & Evangelos Spiliotis & Haris Doukas & John Psarras, 2021. "What Is the Macroeconomic Impact of Higher Decarbonization Speeds? The Case of Greece," Energies, MDPI, vol. 14(8), pages 1-19, April.
    16. de Bruijn, Roland & Kox, Henk & Lejour, Arjan, 2008. "Economic benefits of an Integrated European Market for Services," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 301-319.
    17. Jan H van Heerden, 2020. "The Possible Effects of the Extended Lockdown Period on the South African Economy: A CGE Analysis," Working Papers 202042, University of Pretoria, Department of Economics.
    18. Peter B. Dixon, 2006. "Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-163, Victoria University, Centre of Policy Studies/IMPACT Centre.
    19. Nong, Duy, 2020. "Development of the electricity-environmental policy CGE model (GTAP-E-PowerS): A case of the carbon tax in South Africa," Energy Policy, Elsevier, vol. 140(C).
    20. Zidouemba, Patrice & Gérard , Françoise, 2014. "Poverty and Food Security in Burkina Faso: Analysis of Dynamics at Work and Impacts of Public Investment in Agriculture," Conference papers 332518, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aareaj:343011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.