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On the Effects of Skill Upgrading in the Presence of Spatial Labor Market Frictions: An Agent-Based Analysis of Spatial Policy Design

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Author Info

  • Herbert Dawid

    ()

  • Simon Gemkow

    ()

  • Philipp Harting

    ()

  • Michael Neugart

    ()

Abstract

We report results of economic policy experiments carried out in the framework of the EURACE agent-based macroeconomic model featuring a distinct geographical dimension and heterogeneous workers with respect to skill types. Using a calibrated model able to replicate a range of stylized facts of goods and labor markets, it is examined in how far e ffects di ffer if policy measures aiming at an improvement of general skills are uniformly spread over all regions in the economy or focused in one particular region. We find that it depends on the level of spatial frictions on the labor market how the spatial distribution of policy measures aff ects the e ffects of the policy. Furthermore, we show that a reduction in spatial frictions does not necessarily improve the growth of output and household income.

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File URL: http://jasss.soc.surrey.ac.uk/12/4/5/5.pdf
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Bibliographic Info

Article provided by Journal of Artificial Societies and Social Simulation in its journal Journal of Artificial Societies and Social Simulation.

Volume (Year): 12 (2009)
Issue (Month): 4 ()
Pages: 5

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Handle: RePEc:jas:jasssj:2009-65-1

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Keywords: Agent-Based Model; Skills; Innovation; Regional Policy;

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Cited by:
  1. Herbert Dawid & Simon Gemkow & Philipp Harting & Michael Neugart, 2012. "Labor market integration policies and the convergence of regions: the role of skills and technology diffusion," Journal of Evolutionary Economics, Springer, vol. 22(3), pages 543-562, July.
  2. Cincotti, Silvano & Raberto, Marco & Teglio, Andrea, 2010. "Credit money and macroeconomic instability in the agent-based model and simulator Eurace," Economics Discussion Papers 2010-4, Kiel Institute for the World Economy.
  3. Raberto, Marco & Teglio, Andrea & Cincotti, Silvano, 2011. "Debt deleveraging and business cycles: An agent-based perspective," Economics Discussion Papers 2011-31, Kiel Institute for the World Economy.
  4. Marcel Ausloos & Herbert Dawid & Ugo Merlone, 2014. "Spatial interactions in agent-based modeling," Papers 1405.0733, arXiv.org.
  5. Michael Neugart & Matteo G. Richiardi, 2012. "Agent-based models of the labor market," LABORatorio R. Revelli Working Papers Series 125, LABORatorio R. Revelli, Centre for Employment Studies.

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