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Creating USAGE-OCC: a CGE model of the U.S. with a disaggregated occupational dimension

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  • Peter B. Dixon
  • Maureen T. Rimmer

Abstract

We created the USAGE-OCC model of the U.S. by adding to USAGE occupation-industry matrices for 2019 that identify numbers of people employed and wagebills in 233 occupations (aggregated from 789 6-digit BLS occupations) and 392 industries (BEA input-output). The aggregation from 789 to 233 occupations was performed in a way that minimized the loss of skill/experience/education detail. In specifying occupational mobility, we took account of: wage differences between occupations; physical requirements of occupations; and education/training/experience requirements. As well as providing detailed occupational projections, USAGE-OCC can generate results for employment by wage band, educational requirements and experience. In an illustrative application, we simulated the effects of a mandated 10 per cent increase in real wage rates in low-wage occupations. The results point to the idea that rectifying inequitable wage disparities without adverse employment effects requires policies such as negative tax rates that raise incomes for low-wage workers without increasing costs to employers.

Suggested Citation

  • Peter B. Dixon & Maureen T. Rimmer, 2022. "Creating USAGE-OCC: a CGE model of the U.S. with a disaggregated occupational dimension," Centre of Policy Studies/IMPACT Centre Working Papers g-329, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-329
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    References listed on IDEAS

    as
    1. Zahniser, Steven & Hertz, Thomas & Rimmer, Maureen T., 2012. "Immigration Policy and Its Possible Effects on U.S. Agriculture," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, issue 02, pages 1-10, June.
    2. Steven Zahniser & Tom Hertz & Peter Dixon & Maureen Rimmer, 2012. "Immigration Policy and its Possible Effects on U.S. Agriculture and the Market for Hired Farm Labor: A Simulation Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 477-482.
    3. Peter B. Dixon & Martin Johnson & Maureen T. Rimmer, 2011. "Economy‐Wide Effects Of Reducing Illegal Immigrants In U.S. Employment," Contemporary Economic Policy, Western Economic Association International, vol. 29(1), pages 14-30, January.
    4. Bohringer, Christoph & Boeters, Stefan & Feil, Michael, 2005. "Taxation and unemployment: an applied general equilibrium approach," Economic Modelling, Elsevier, vol. 22(1), pages 81-108, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Employment by occupation and industry; Occupational mobility; Labor-market modeling; Wage increases in low-wage occupations;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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