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Discrete Working Time Choice in an Applied General Equilibrium Model

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  • Stefan Boeters
  • Michael Feil
  • Nicole Gürtzgen

Abstract

We present a model that integrates the discrete working time choice of heterogenous households into a general equilibrium setting where wages are determined by sectoral bargaining between firms and trade unions. The model is calibrated to German micro and macro data. We then use it to analyse a stylised policy reform designed to stimulate labour supply. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Stefan Boeters & Michael Feil & Nicole Gürtzgen, 2005. "Discrete Working Time Choice in an Applied General Equilibrium Model," Computational Economics, Springer;Society for Computational Economics, vol. 26(3), pages 1-29, November.
    • Handle: RePEc:kap:compec:v:26:y:2005:i:3:p:1-29
    DOI: 10.1007/s10614-005-9001-7
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    Citations

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    as


    Cited by:

    1. Stefan Boeters & Luc Savard, 2011. "The Labour Market in CGE Models," Cahiers de recherche 11-20, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Boeters Stefan & Gürtzgen Nicole & Schnabel Reinhold, 2006. "Reforming Social Welfare in Germany: An Applied General Equilibrium Analysis," German Economic Review, De Gruyter, vol. 7(4), pages 363-388, December.
    3. Arntz, Melanie & Boeters, Stefan & Gurtzgen, Nicole, 2006. "Alternative approaches to discrete working time choice in an AGE framework," Economic Modelling, Elsevier, vol. 23(6), pages 1008-1032, December.
    4. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2008. "Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation," Economic Modelling, Elsevier, vol. 25(3), pages 422-439, May.
    5. Lemelin, André & Savard, Luc, 2022. "What do CGE models have to say about fiscal reform?," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 758-774.
    6. Michaelis, Jochen & Spermann, Alexander, 2004. "Evaluation von Mini- und Midijobs sowie Arbeitslosengeld II: Methodische Grundprobleme und Lösungsansätze," Volkswirtschaftliche Diskussionsbeiträge 61, University of Kassel, Faculty of Economics and Management.
    7. Andreas Peichl, 2009. "The Benefits and Problems of Linking Micro and Macro Models — Evidence from a Flat Tax Analysis," Journal of Applied Economics, Taylor & Francis Journals, vol. 12(2), pages 301-329, November.
    8. Börsch-Supan Axel & Ludwig Alexander, 2009. "Living Standards in an Aging Germany: The Benefits of Reforms and the Costs of Resistance," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 163-179, April.
    9. Peichl, Andreas, 2005. "Die Evaluation von Steuerreformen durch Simulationsmodelle," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 05-1, University of Cologne, FiFo Institute for Public Economics.
    10. Andreas PEICHL, 2008. "The Benefits of Linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," EcoMod2008 23800106, EcoMod.
    11. Peichl, Andreas & Siegloch, Sebastian, 2012. "Accounting for labor demand effects in structural labor supply models," Labour Economics, Elsevier, vol. 19(1), pages 129-138.
    12. repec:bla:germec:v:7:y:2006:i::p:363-388 is not listed on IDEAS
    13. Feil, Michael & Zika, Gerd, 2005. "Politikberatung mit dem Simulationsmodell PACE-L : Möglichkeiten und Grenzen am Beispiel einer Senkung der Sozialabgaben," IAB-Forschungsbericht 200517, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Melanie Arntz & Stefan Boeters & Nicole Gürtzgen & Stefanie Schubert, 2006. "Analysing Welfare Reform in a Microsimulation-AGE Model," Computing in Economics and Finance 2006 109, Society for Computational Economics.
    15. Marit Hinnosaar, 2004. "Estonian labor market institutions within a general equilibrium framework," Bank of Estonia Working Papers 2004-5, Bank of Estonia, revised 13 Oct 2004.
    16. Edlira Narazani, 2011. "Evidences on Household Labour Supply when Labour Demand is not Perfectly Elastic Keywords: Labour Supply, Labour Demand, Equilibrium," CHILD Working Papers wp22_11, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    17. Marit Hinnosaar, 2004. "The Impact Of Benefit And Tax Reforms On Estonian Labor Market In A General Equilibrium Framework," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 31, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    18. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," 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 1645-1718, Elsevier.

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    More about this item

    Keywords

    applied general equilibrium; discrete working time choice; labour market; trade unions; wage bargaining; labour market reform;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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