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The Labour Market in CGE Models

  • Stefan Boeters


    (CPB, Netherlands Bureau for Economic Policy Analysis)

  • Luc Savard


    (Département d'économique and GRÉDI, Université de Sherbrooke)

This chapter 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 Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 11-20.

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Length: 97 pages
Date of creation: Oct 2011
Date of revision:
Handle: RePEc:shr:wpaper:11-20
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