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A labour market extension for WorldScan; modelling labour supply, wage bargaining and unemployment in a CGE framework

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  • Stefan Boeters

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  • Nico van Leeuwen

    ()

Abstract

This paper describes a labour market extension for the CGE model "WorldScan". The labour market module features endogenous labour supply at two margins: participation and hours of work. Involuntary unemployment is captured through a collective bargaining ("right to manage") set-up. The paper explains how these two labour market mechanisms interact and how they are calibrated to empirical elasticities. Illustrative simulations that can be placed in the context of the "double dividend" literature show the working mechanisms of the module.

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Bibliographic Info

Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Document with number 201.

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Date of creation: Mar 2010
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Handle: RePEc:cpb:docmnt:201

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Cited by:
  1. Stefan Boeters & Luc Savard, 2012. "The Labour Market in CGE Models," CPB Discussion Paper 201, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, Elsevier.

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