Creating USAGE-OCC: a CGE model of the U.S. with a disaggregated occupational dimension

Peter Dixon and Maureen Rimmer

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: We created the USAGE-OCC model of the U.S. by adding to USAGE occupation-industry matrices for 2019 that identify numbers of people employed and wagebills in 233 occupations (aggregated from 789 6-digit BLS occupations) and 392 industries (BEA input-output). The aggregation from 789 to 233 occupations was performed in a way that minimized the loss of skill/experience/education detail. In specifying occupational mobility, we took account of: wage differences between occupations; physical requirements of occupations; and education/training/experience requirements. As well as providing detailed occupational projections, USAGE-OCC can generate results for employment by wage band, educational requirements and experience. In an illustrative application, we simulated the effects of a mandated 10 per cent increase in real wage rates in low-wage occupations. The results point to the idea that rectifying inequitable wage disparities without adverse employment effects requires policies such as negative tax rates that raise incomes for low-wage workers without increasing costs to employers.

Keywords: Employment by occupation and industry; Occupational mobility; Labor-market modeling; Wage increases in low-wage occupations (search for similar items in EconPapers)
JEL-codes: C68 J24 J31 J62 (search for similar items in EconPapers)
Date: 2022-05
New Economics Papers: this item is included in nep-cmp and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.copsmodels.com/ftp/workpapr/g-329.pdf Initial version, 2022-05 (application/pdf)
https://www.copsmodels.com/elecpapr/g-329.htm Local abstract: may link to additional material. (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cop:wpaper:g-329

Access Statistics for this paper

More papers in Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre Contact information at EDIRC.
Bibliographic data for series maintained by Mark Horridge ().