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The Labour Market in CGE Models

  • Stefan Boeters

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  • Luc Savard

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

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

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Date of creation: Jan 2012
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Handle: RePEc:cpb:discus:201
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  2. David G. Blanchflower & Andrew Oswald, 1995. "International Wage Curves," NBER Chapters, in: Differences and Changes in Wage Structures, pages 145-174 National Bureau of Economic Research, Inc.
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