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A proximity-based approach to labor mobility in CGE models with an application to Sub-Saharan Africa

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  • Lofgren,Hans
  • Cicowiez,Martin

Abstract

The ease with which workers can move between sectors has a strong impact on the effects on labor markets of shocks such as changes in world prices or migration flows. This paper introduces an approach to labor mobility with frictions under which worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers in sector a move to sector a', their efficiency shortfall due to a capability misfit compared to what is needed in a'(and possessed by workers already in a') is measured by a proximity parameter, 0 ? proxa,a'? 1. If proxa,a'

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  • Lofgren,Hans & Cicowiez,Martin, 2017. "A proximity-based approach to labor mobility in CGE models with an application to Sub-Saharan Africa," Policy Research Working Paper Series 8151, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8151
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    1. Agbahey, Johanes & Siddig, Khalid & Grethe, Harald, 2021. "Economy-wide effects of cross-border labor mobility: The case of Palestinian employment in Israel," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 964-981.
    2. Tsigas, Marinos & Bernard, Jennifer, 2020. "Costly labor adjustments to trade shocks in CGE analysis," Conference papers 333159, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. 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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