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Assessing the Social and Macroeconomic Impacts of Labour Market Integration: A Holistic Approach

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Abstract

In the age of globalisation and the knowledge economy, skill mobility is perceived as one of the key factors for fully unlocking the labour market potential. Assessing the social and macroeconomic impacts of increased skill mobility is an important though also challenging task, which requires a holistic approach. This study presents the dynamic spatial general equilibrium approach taken in the Regional Holistic Model (RHOMOLO) to better understand the relationship between education, skills, migration and economic growth. Two key channels of labour market adjustment -- upward skill mobility and spatial skill mobility -- are presented and explained in particular detail. By performing numerical simulations and conceptual analysis of labour market integration, we aim to facilitate understanding of the advantages and limitations of the approach taken in RHOMOLO, and its potential for education, skills and employment policy impact assessment. The results from our analysis suggest that a holistic approach is indeed crucial for capturing all the direct and indirect, short- and long-run effects, and it has a wide potential for assessing region-, sector- and skill-specific macroeconomic and social effects of policies aiming at integration e.g. of marginalised communities, such as Roma or refugees, into the EU labour markets.

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  • Pavel Ciaian & d’Artis Kancs, 2015. "Assessing the Social and Macroeconomic Impacts of Labour Market Integration: A Holistic Approach," JRC Working Papers JRC99645, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:iptwpa:jrc99645
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    1. repec:bla:worlde:v:41:y:2018:i:10:p:2599-2630 is not listed on IDEAS
    2. Pavel Ciaian & Andrey Ivanov & d’Artis Kancs, 2018. "Long-run Economic, Budgetary and Fiscal Effects of Roma Integration Policies," EERI Research Paper Series EERI RP 2018/12, Economics and Econometrics Research Institute (EERI), Brussels.
    3. Jean Mercenier & Maria Teresa Alvarez Martinez & Andries Brandsma & Francesco Di Comite & Olga Diukanova & d'Artis Kancs & Patrizio Lecca & Montserrat Lopez-Cobo & Philippe Monfort & Damiaan Persyn & , 2016. "RHOMOLO-v2 Model Description: A spatial computable general equilibrium model for EU regions and sectors," JRC Working Papers JRC100011, Joint Research Centre (Seville site).
    4. d'Artis Kancs & Patrizio Lecca, 2018. "Long‐term social, economic and fiscal effects of immigration into the EU: The role of the integration policy," The World Economy, Wiley Blackwell, vol. 41(10), pages 2599-2630, October.

    More about this item

    Keywords

    Dynamic spatial general equilibrium model; skills; education; employment; labour; migration; wage; human capital.;

    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
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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