The Labour Market in CGE Models

100 Pages Posted: 18 Jan 2012

See all articles by Stefan Boeters

Stefan Boeters

CPB Netherlands Bureau of Economic Policy Analysis; ZEW – Leibniz Centre for European Economic Research

Luc Savard

Mohammed VI Polytechnic University (UM6P)

Date Written: October 1, 2011

Abstract

This chapter reviews options of labor market modelling in a CGE framework. On the labor supply side, two principal modelling options are distinguished and discussed: aggregated, representative households and micro simulation based on individual household data. On the labor demand side, we focus on the substitution possibilities between different types of labor in production. With respect to labor market coordination, we discuss several wage-forming mechanisms and involuntary unemployment.

Keywords: computable general equilibrium model, labour market, labour supply, labour demand, microsimulation, involuntary unemployment

JEL Classification: C68, D58, J20, J64

Suggested Citation

Boeters, Stefan and Savard, Luc, The Labour Market in CGE Models (October 1, 2011). ZEW - Centre for European Economic Research Discussion Paper No. 11-079, Available at SSRN: https://ssrn.com/abstract=1987650 or http://dx.doi.org/10.2139/ssrn.1987650

Stefan Boeters (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

HOME PAGE: http://www.cpb.nl/eng/general/org/homepages/sbt/

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Luc Savard

Mohammed VI Polytechnic University (UM6P) ( email )

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