IDEAS home Printed from https://ideas.repec.org/p/ven/wpaper/202217.html
   My bibliography  Save this paper

Underemployment in a Computable General Equilibrium Model

Author

Listed:
  • Roberto Roson

    (Department of Economics, Ca' Foscari University of Venice; Loyola Andalusia University; GREEN Bocconi University Milan)

Abstract

This paper presents a methodology to account, in a computable general equilibrium model, for the presence of underemployment in an economic system. The methodology is based on the estimation of a matrix, mapping different categories of workers to levels of educational attainment. A procedure is proposed, which allows recalculating the matrix after the realization of a simulation with a CGE model, when employment levels are varied. In this way, a new matrix is made consistent with the simulation results, identifying a new equilibrium in the labor market, which entails a different combination of unemployment and underemployment.

Suggested Citation

  • Roberto Roson, 2022. "Underemployment in a Computable General Equilibrium Model," Working Papers 2022:17, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2022:17
    as

    Download full text from publisher

    File URL: http://www.unive.it/pag/fileadmin/user_upload/dipartimenti/economia/doc/Pubblicazioni_scientifiche/working_papers/2022/WP_DSE_roson_17_22.pdf
    File Function: First version, anno
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Burfisher,Mary E., 2021. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9781108748025.
    2. Bell, David N.F. & Blanchflower, David G., 2018. "The lack of wage growth and the falling NAIRU," National Institute Economic Review, National Institute of Economic and Social Research, vol. 245, pages 40-55, August.
    3. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    4. Burfisher,Mary E., 2021. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9781108490085.
    5. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
    6. David N.F. Bell & David G. Blanchflower, 2013. "Underemployment in the UK Revisited," National Institute Economic Review, National Institute of Economic and Social Research, vol. 224(1), pages 8-22, May.
    7. Mr. Gee Hee Hong & Zsoka Koczan & Weicheng Lian & Mr. Malhar S Nabar, 2018. "More Slack than Meets the Eye? Recent Wage Dynamics in Advanced Economies," IMF Working Papers 2018/050, International Monetary Fund.
    8. Boeters, Stefan & Savard, Luc, 2013. "The Labor Market in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1645-1718, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers in Public Economics 241, University of Rome La Sapienza, Department of Economics and Law.
    2. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers 2023: 15, Department of Economics, University of Venice "Ca' Foscari".

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers 2023: 15, Department of Economics, University of Venice "Ca' Foscari".
    2. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers in Public Economics 241, University of Rome La Sapienza, Department of Economics and Law.
    3. David N. F. Bell & David G. Blanchflower, 2021. "Underemployment in the United States and Europe," ILR Review, Cornell University, ILR School, vol. 74(1), pages 56-94, January.
    4. Nejati, Mehdi & Shah, Muhammad Ibrahim, 2023. "How does ICT trade shape environmental impacts across the north-south regions? Intra-regional and Inter-regional perspective from dynamic CGE model," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    5. Kamel Almutairi & Ramzi Alahmadi, 2023. "Assessing the Impact of the Recent Unprecedented World Events on the Economic and Environmental Conditions of Saudi Arabia," Sustainability, MDPI, vol. 15(2), pages 1-14, January.
    6. Chukiat Chaiboonsri, 2024. "The Potential Analytical Impact of Significant Sectoral Creative Economy on Thailand’s Economy: A Case Study of the IRS-CGE Model vs. the CRS-CGE Model for Both the National and Provincial Economies," Economies, MDPI, vol. 12(2), pages 1-21, February.
    7. Afonso, Damares Lopes & Bastos, Suzana Quinet de Andrade & Perobelli, Fernando Salgueiro, 2021. "Latin America and China: mutual benefit or dependency?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. Martín Cicowiez & Javier Alejo & Luciano Di Gresia & Sergio Olivieri & World Bank & Ana Pacheco, 2016. "Export Taxes, World Prices, and Poverty in Argentina: A Dynamic CGEMicrosimulation Analysis [model, Argentina. Classification-JEL: C68, D58, I38, E62]," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 24-54.
    9. Bell, David N.F. & Blanchflower, David G., 2019. "The well-being of the overemployed and the underemployed and the rise in depression in the UK," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 180-196.
    10. Lauren F. Bergquist & Benjamin Faber & Thibault Fally & Matthias Hoelzlein & Edward Miguel & Andrés Rodríguez-Clare, 2022. "Scaling Agricultural Policy Interventions," NBER Working Papers 30704, National Bureau of Economic Research, Inc.
    11. Acosta, Alejandro & McCorriston, Steve & Nicolli, Francesco & Venturelli, Ester & Wickramasinghe, Upali & ArceDiaz, Eduardo & Scudiero, Lavinia & Sammartino, Alejandro & Schneider, Fritz & Steinfeld, , 2021. "Immediate effects of COVID-19 on the global dairy sector," Agricultural Systems, Elsevier, vol. 192(C).
    12. Kiss, Aron & Van Herck, Kristine, 2019. "Short-Term and Long-Term Determinants of Moderate Wage Growth in the EU," IZA Policy Papers 144, Institute of Labor Economics (IZA).
    13. Liu, Li-Jing & Yao, Yun-Fei & Liang, Qiao-Mei & Qian, Xiang-Yan & Xu, Chun-Lei & Wei, Si-Yi & Creutzig, Felix & Wei, Yi-Ming, 2021. "Combining economic recovery with climate change mitigation: A global evaluation of financial instruments," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 438-453.
    14. Ramskogler, Paul, 2021. "Labour market hierarchies and the macro-economy – Do labour market dualities affect wage growth in Europe?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 154-165.
    15. Akiko Higashi & Ken Itakura & Yushi Inoue & Hiroaki Otake, 2022. "Analysis of the change in the structure of the Japanese power supply using the GTAP-E-power model," SN Business & Economics, Springer, vol. 2(9), pages 1-22, September.
    16. Marco Del Negro & Michele Lenza & Giorgio E. Primiceri & Andrea Tambalotti, 2020. "What's Up with the Phillips Curve?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(1 (Spring), pages 301-373.
    17. Mark Sommer & Kurt Kratena, 2016. "The Carbon Footprint of European Households and Income Distribution. WWWforEurope Working Paper No. 113," WIFO Studies, WIFO, number 58787, April.
    18. Mark Sommer & Raimund Kurzmann, 2016. "Kurzbeschreibung der Modelllandschaft im Projekt "Beschäftigungsmultiplikatoren und die Besetzung von Arbeitsplätzen in Österreich"," WIFO Studies, WIFO, number 58838, April.
    19. Philippidis, George & M'Barek, Robert & Urban-Boysen, Kirsten & Van Zeist, Willem-Jan, 2023. "Exploring economy-wide sustainable conditions for EU bio-chemical activities," Ecological Economics, Elsevier, vol. 210(C).
    20. Ana Corina Miller & Alan Matthews & Trevor Donnellan & Cathal O'Donoghue, 2011. "A 2005 Agriculture-Food SAM (AgriFood-SAM) for Ireland," The Institute for International Integration Studies Discussion Paper Series iiisdp372, IIIS.

    More about this item

    Keywords

    Underemployment; Unemployment; Labor Market; Computable General Equilibrium Models;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ven:wpaper:2022:17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Geraldine Ludbrook (email available below). General contact details of provider: https://edirc.repec.org/data/dsvenit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.