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The labour market in CGE models

  • Boeters, Stefan
  • Savard, Luc

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 ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 11-079.

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Date of creation: 2011
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Handle: RePEc:zbw:zewdip:11079
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