IDEAS home Printed from https://ideas.repec.org/a/kap/compec/v50y2017i1d10.1007_s10614-016-9577-0.html
   My bibliography  Save this article

WorkSim: A Calibrated Agent-Based Model of the Labor Market Accounting for Workers’ Stocks and Gross Flows

Author

Listed:
  • Olivier Goudet

    (University Pierre et Marie Curie)

  • Jean-Daniel Kant

    (University Pierre et Marie Curie)

  • Gérard Ballot

    (University Pierre et Marie Curie)

Abstract

This paper presents an agent-based model of the labor market. It simulates the market in the recent period at the aggregate level and at the level of the principal categories of labor, on the basis of the decisions of heterogeneous agents, firms and individuals, who interact. These decisions rely on individual computations of profits and utilities, although rationality is bounded in such a complex environment. The theoretical structure that underlies the decisions is the search concept. We apply this framework to the case of France in 2011. The model is at a scale of 1/4700. It is fairly detailed on the institutions of the labor market that constrain the agents’ decisions. Finally it is calibrated by a powerful algorithm to reproduce a large number of variables of interest. The calibrated model presents a consistent accounting system of the gross flows of the individuals between the main states, employment, distinguishing open ended contracts and fixed duration contracts, unemployment and inactivity. The simulation of the gross flows accounts enables us to analyze the patterns of mobility in a way that the observed statistics on gross flows, which are partial, cannot do. The model then characterizes the nature of the labor market under study, reproducing the high proportion of the fixed duration contracts in the hiring flows, and it points to a dualism of the French labor market.

Suggested Citation

  • Olivier Goudet & Jean-Daniel Kant & Gérard Ballot, 2017. "WorkSim: A Calibrated Agent-Based Model of the Labor Market Accounting for Workers’ Stocks and Gross Flows," Computational Economics, Springer;Society for Computational Economics, vol. 50(1), pages 21-68, June.
    • Handle: RePEc:kap:compec:v:50:y:2017:i:1:d:10.1007_s10614-016-9577-0
    DOI: 10.1007/s10614-016-9577-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10614-016-9577-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10614-016-9577-0?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
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Zach Lewkovicz & Jean-Daniel Kant, 2008. "A Multiagent Simulation Of A Stylized French Labor Market: Emergences At The Micro Level," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 217-230.
    2. Gueorgui Kambourov & Iourii Manovskii, 2009. "Occupational Specificity Of Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, February.
    3. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    4. Ballot, Gerard, 2002. "Modeling the labor market as an evolving institution: model ARTEMIS," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 51-77, September.
    5. George J. Stigler, 1962. "Information in the Labor Market," NBER Chapters, in: Investment in Human Beings, pages 94-105, National Bureau of Economic Research, Inc.
    6. Neugart, Michael, 2008. "Labor market policy evaluation with ACE," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 418-430, August.
    7. Eliasson, Gunnar, 1977. "Competition and Market Processes in a Simulation Model of the Swedish Economy," American Economic Review, American Economic Association, vol. 67(1), pages 277-281, February.
    8. Christopher A. Pissarides, 2009. "The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?," Econometrica, Econometric Society, vol. 77(5), pages 1339-1369, September.
    9. Yves Dubois & Jean-Olivier Hairault & Thomas Le Barbanchon & Thepthida Sopraseuth, 2011. "Flux de travailleurs au cours du cycle conjoncturel," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00651968, HAL.
    10. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    11. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    12. Robert Gibbons & Lawrence F. Katz & Thomas Lemieux & Daniel Parent, 2005. "Comparative Advantage, Learning, and Sectoral Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 681-724, October.
    13. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    14. Gary S. Becker, 1994. "Investment in Human Capital: Effects on Earnings," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 29-58, National Bureau of Economic Research, Inc.
    15. Muriel Barlet & Didier Blanchet & Thomas Le Barbanchon, 2009. "Microsimulation et modèles d’agents : une approche alternative pour l’évaluation des politiques d’emploi," Économie et Statistique, Programme National Persée, vol. 429(1), pages 51-76.
    16. Carlos Gradín & Olga Cantó & Coral del Río, 2015. "Unemployment and spell duration during the Great Recession in the EU," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(2), pages 216-235, May.
    17. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1.
    18. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    19. Leiponen, Aija, 2005. "Skills and innovation," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 303-323, June.
    20. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    21. Gérard Ballot & Erol Taymaz, 2000. "Competition, training, heterogeneity persistence, and aggregate growth in a multi-agent evolutionary model," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 3(01n04), pages 335-351.
    22. Barbara R. Bergmann, 1974. "A Microsimulation of the Macroeconomy with Explicitly Represented Money Flows," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 3, pages 475-489, National Bureau of Economic Research, Inc.
    23. Erol Taymaz & G, rard Ballot, 1997. "The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation," Journal of Evolutionary Economics, Springer, vol. 7(4), pages 435-457.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nan Lu, 2018. "La modélisation de l’indice CAC 40 avec un modèle basé agent," Erudite Ph.D Dissertations, Erudite, number ph18-02 edited by François Legendre.
    2. Caner Ates & Dietmar Maringer, 2021. "A Parsimonious Macroeconomic ABM for Labor Market Regulations," LEM Papers Series 2021/46, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Jiaqi Ge & Bernardo Alves Furtado, 2024. "Modelling urban transition with coupled housing and labour markets," Environment and Planning B, , vol. 51(3), pages 590-609, March.
    4. Christos Alexakis & Michael Dowling & Konstantinos Eleftheriou & Michael Polemis, 2021. "Textual Machine Learning: An Application to Computational Economics Research," Computational Economics, Springer;Society for Computational Economics, vol. 57(1), pages 369-385, January.
    5. Jean-Daniel Kant & Olivier Goudet & Gérard Ballot, 2016. "An ex ante evaluation of economic dismissals facilitation on the French labor market: An agent-based model," Post-Print hal-01511169, HAL.

    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. Olivier Goudet & Gérard Ballot & Jean-Daniel Kant, 2015. "How to choose a contract type in the French Labor Market : an agent-based model," Post-Print hal-01512938, HAL.
    2. Jung-Seung Yang, 2022. "Dynamics of Firm’s Investment in Education and Training: An Agent-based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1317-1351, December.
    3. Jean-Daniel Kant & Olivier Goudet & Gérard Ballot, 2016. "An ex ante evaluation of economic dismissals facilitation on the French labor market: An agent-based model," Post-Print hal-01511169, HAL.
    4. Naval, Joaquín & Silva, José I. & Vázquez-Grenno, Javier, 2020. "Employment effects of on-the-job human capital acquisition," Labour Economics, Elsevier, vol. 67(C).
    5. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 11, pages 973-1041, Elsevier.
    6. Damdinsuren, Erdenebulgan & Zaharieva, Anna, 2023. "Expectation formation and learning in the labour market with on-the-job search and Nash bargaining," Labour Economics, Elsevier, vol. 81(C).
    7. Gerard Ballot & Antoine Mandel & Annick Vignes, 2015. "Agent-based modeling and economic theory: where do we stand?," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(2), pages 199-220, October.
    8. Jakob Grazzini & Matteo G. Richiardi, 2013. "Consistent Estimation of Agent-Based Models by Simulated Minimum Distance," LABORatorio R. Revelli Working Papers Series 130, LABORatorio R. Revelli, Centre for Employment Studies.
    9. Isaac Baley & Ana Figueiredo & Robert Ulbricht, 2022. "Mismatch Cycles," Journal of Political Economy, University of Chicago Press, vol. 130(11), pages 2943-2984.
    10. Luca Riccetti & Alberto Russo & Mauro Gallegati, 2015. "An agent based decentralized matching macroeconomic model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(2), pages 305-332, October.
    11. Kai Liu, 2010. "Wage Risk, On-the-job Search and Partial Insurance," 2010 Meeting Papers 1136, Society for Economic Dynamics.
    12. Christopher A. Pissarides, 2011. "Equilibrium in the Labor Market with Search Frictions," American Economic Review, American Economic Association, vol. 101(4), pages 1092-1105, June.
    13. Krolikowski, Pawel M. & McCallum, Andrew H., 2021. "Goods-market frictions and international trade," Journal of International Economics, Elsevier, vol. 129(C).
    14. Sandra Silva & Jorge Valente & Aurora Teixeira, 2012. "An evolutionary model of industry dynamics and firms’ institutional behavior with job search, bargaining and matching," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(1), pages 23-61, May.
    15. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    16. José Mustre‐Del‐Río, 2019. "Job Duration over the Business Cycle," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 51(6), pages 1691-1711, September.
    17. Pawel Krolikowski, 2017. "Job Ladders and Earnings of Displaced Workers," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(2), pages 1-31, April.
    18. Wadensjö, Eskil, 2013. "Labor Market Transparency," IZA Discussion Papers 7658, Institute of Labor Economics (IZA).
    19. Lisa B. Kahn & Erika McEntarfer, 2014. "Employment Cyclicality and Firm Quality," NBER Working Papers 20698, National Bureau of Economic Research, Inc.
    20. Fujii, Mayu & Shiraishi, Kousuke & Takayama, Noriyuki, 2018. "The effects of early job separation on later life outcomes," Journal of the Japanese and International Economies, Elsevier, vol. 48(C), pages 68-84.

    More about this item

    Statistics

    Access and download statistics

    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:kap:compec:v:50:y:2017:i:1:d:10.1007_s10614-016-9577-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.