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The Labor Market in Computable General Equilibrium Models

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  • Boeters, Stefan
  • Savard, Luc

Abstract

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

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This chapter was published in:

  • Peter B. Dixon & Dale Jorgenson (ed.), 2012. "Handbook of Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier, edition 1, volume 1, number 1.
    This item is provided by Elsevier in its series Handbook of Computable General Equilibrium Modeling with number v:1:y:2013:i:c:p:1645-1718.

    Handle: RePEc:eee:hacchp:v:1:y:2013:i:c:p:1645-1718

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    Keywords: Computable general equilibrium model; labor market; labor supply; labor demand; microsimulation; involuntary unemployment;

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    Cited by:
    1. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The Own-Wage Elasticity of Labor Demand: A Meta-Regression Analysis," IZA Discussion Papers 7958, Institute for the Study of Labor (IZA).
    2. Fanny Moffette & Dorothée Boccanfuso & Patrick Richard & Luc Savard, 2013. "Estimating the Impact of the Québec’s Work Incentive Program on Labour Supply: An Ex Post Microsimulation Analysis," Cahiers de recherche 13-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
    3. Jouko Kinnunen & Maria Rundberg, 2013. "Measuring the importance of voluntary work in the Ã…land Islands," ERSA conference papers ersa13p579, European Regional Science Association.
    4. Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, Open Access Journal, vol. 5(6), pages 2727-2750, June.

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