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The Labor Market in Computable General Equilibrium Models

In: Handbook of Computable General Equilibrium Modeling

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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.

Suggested Citation

  • Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1645-1718, Elsevier.
    • Handle: RePEc:eee:hacchp:v:1:y:2013:i:c:p:1645-1718
    DOI: 10.1016/B978-0-444-59568-3.00026-2
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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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