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The Labour Market in CGE Models

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  • Stefan Boeters

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Luc Savard

Abstract

This paper reviews options of labour market-modelling in a CGE framework. On the labour-supply side, two principal modelling options are distinguished and discussed: aggregated, representative households and microsimulation based on individual household data.On the labour-demand side, we focus on the substitution possibilities between different types of labour in production.With respect to labour-market coordination, we discuss several wage-forming mechanisms and involuntary unemployment.

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  • Stefan Boeters & Luc Savard, 2012. "The Labour Market in CGE Models," CPB Discussion Paper 201, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:201
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    11. Pelkmans, Jacques & Lejour, Arjan & Schrefler, Lorna & Mustilli, Federica & Timini, Jacopo, 2014. "The Impact of TTIP: The underlying economic model and comparisons," CEPS Papers 9710, Centre for European Policy Studies.
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    15. Latorre, María C., 2014. "A CGE analysis of the impact of foreign direct investment and tariff reform on female and male wages," Conference papers 332453, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2018. "Labour leisure trade-off meets a mobility function to model cross-border movements of labour between Palestine and Israel," Conference papers 333017, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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