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Empirical Specifications for a General Equilibrium Analysis of Labor Market Policies and Adjustments

  • Andréa Maechler
  • David Roland-Holst

Economic globalization is increasingly challenging traditional, closedeconomy intuition about linkages between demand, supply, and employment. In some parts of the world, substantial employment growth is arising from external demand while, in other areas, there is growing concern that domestic demand is being diverted to external sources of supply and employment. To better understand and predict how employment patterns will evolve with expanding international trade, the best of labor market theory must be brought into an empirical general equilibrium framework which can capture these complex interactions. The purpose of the present study is to review the innovative recent literature on labor markets and distill essential elements which can be implemented in a practical manner. The result is a taxonomy of new labor market theories and an agenda for new empirical research on wage and employment adjustment ... L'analyse économique orthodoxe des interactions entre l'offre, la demande et l'emploi, fondée sur des économies fermées, devient obsolète à mesure que progresse la globalisation. La croissance considérable de l'emploi observée dans certaines régions du monde est tirée par la demande extérieure ; mais dans d'autres régions, la satisfaction de la demande par l'importation est perçue comme une menace pour l'emploi. Afin de mieux comprendre, et si possible d'anticiper, les changements structurels du marché du travail induits par le commerce international, il convient d'introduire les principaux acquis de la théorie du marché du travail dans un modèle empirique d'équilibre général qui permettrait de circonscrire ces interactions particulièrement complexes. Cette étude vise à faire le point des travaux récents les plus novateurs portant sur le marché du travail, puis d'en extraire les apports les plus intéressants pour les exprimer en formules économétriques faciles à utiliser. Cette ...

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Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 106.

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Date of creation: May 1995
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Handle: RePEc:oec:devaaa:106-en
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