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Job Allocation in the Levy Institute Microsimulation Model

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  • Brandon Istenes

Abstract

The Levy Institute Microsimulation Model (LIMM) is a tool used for policy simulations to estimate ex-ante the employment and income effects of sectoral investments. In Istenes (2023), a simple implementation of the LIMM for New York State initially had difficulty producing realistic conditional distributions of allocated jobs. This paper identifies the sources of that problem, which produces significant distortions to the characteristic distributions of job recipients. Solutions to the problem are presented with theoretical and empirical analysis. The relevance of this problem to other LIMM-based models is discussed; while it is theoretically relevant, it is unlikely to have a substantial impact on results.

Suggested Citation

  • Brandon Istenes, 2025. "Job Allocation in the Levy Institute Microsimulation Model," Economics Working Paper Archive wp_1079, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_1079
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    References listed on IDEAS

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    1. Kim, Kijong & İlkkaracan, İpek & Kaya, Tolga, 2019. "Public investment in care services in Turkey: Promoting employment & gender inclusive growth," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1210-1229.
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