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Modelling Human Capital in WorldScan

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  • Rojas-Romagosa, Hugo
  • van Leeuwen, Nico

Abstract

We build new modelling capabilities in WorldScan ñCPBís CGE modelñ to address policy questions related to human capital and skill formation. To achieve this goal we revise and update the human capital satellite model by Jacobs (2005). In addition, new features are introduced into WorldScan to deal with human capital policies: i) three skill groups, ii) a linkage between high-skill workers and R&D activities and ii) more information is taken from the satellite model. The new model is used to test current EU human capital policies. Our results have a similar pattern of macroeconomic outcomes, but with much larger e§ects than using previous WorldScan versions.

Suggested Citation

  • Rojas-Romagosa, Hugo & van Leeuwen, Nico, 2009. "Modelling Human Capital in WorldScan," Conference papers 331881, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331881
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