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EUROLAB: A Multidimensional Labour Supply-Demand Model for EU Countries

Author

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  • Edlira Narazani

    (The Joint Research Centre, the European Commission, Seville, Spain)

  • Ugo Colombino

    (Dipartimento di Economia e Statistica, University of Turin, Turin, Italy)

  • Bianey Palma

    (The Joint Research Centre, the European Commission, Seville, Spain)

Abstract

This paper describes EUROLAB, a labour supply-demand microsimulation model that relies on EUROMOD, the static microsimulation model for the European Union countries. EUROLAB is built on a multidimensional discrete choice model of labour supply and accounts for involuntary unemployment. The model estimates individual changes in supplied hours of work and participation as a reaction to a hypothetical or real tax transfer reform, often referred to in the literature as “second-order” effects. Furthermore, the model allows for the demand-side effects of a labour market that, depending on how elastic it is, would lead to a different labour supply when the market reaches its equilibrium. The model is unique in covering 27 countries under the same specification of preferences, opportunity set representation and the same concept of income and working hours. We illustrate the usefulness of the model by showing several examples of EUROLAB, using both the one-dimensional and multidimensional versions. Potential extensions of the model are also discussed in the paper.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Edlira Narazani & Ugo Colombino & Bianey Palma, 2023. "EUROLAB: A Multidimensional Labour Supply-Demand Model for EU Countries," International Journal of Microsimulation, International Microsimulation Association, vol. 16(3), pages 49-76.
    • Handle: RePEc:ijm:journl:v:16:y:2023:i:3:p:49-76
    DOI: 10.34196/ijm.00288
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    Cited by:

    1. Andreas THIEMANN & Diana OGNYANOVA & Edlira NARAZANI & Balazs PALVOLGYI & Athena Kalyva & Alexander LEODOLTER, 2021. "Shifting the Tax Burden away from Labour towards Inheritances and Gifts – Simulation results for Germany," JRC Working Papers on Taxation & Structural Reforms 2021-16, Joint Research Centre.
    2. Narazani, Edlira & Agúndez García, Ana & Christl, Michael & Figari, Francesco, 2025. "Increased childcare to promote mothers’ employment in selected EU countries," Journal of Policy Modeling, Elsevier, vol. 47(3), pages 492-511.
    3. Ugo Colombino & Nizamul Islam, 2025. "Lost jobs, new jobs and optimal tax-transfer reforms," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 64(4), pages 765-818, June.
    4. repec:ptu:bdpart:e202212 is not listed on IDEAS
    5. Lara Wemans & Sara Riscado & Edlira Narazani, 2022. "The role of family social transfers in reducing child poverty in Portugal," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.

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