Enriching U.S. labor results in a multi-regional CGE model

Caitlyn Carrico and Marinos Tsigas

Economic Modelling, 2014, vol. 36, issue C, 268-281

Abstract: This paper proposes a new approach for enriching results for U.S. labor markets from the leading multi-regional CGE model, the GTAP model. Departing from the usual approach of expanding labor data in all economies in a model's database, our method expands only the U.S. labor data. Additionally, we introduce a novel modification to primary factor demands, generating more realistic labor markets in which lower-skilled jobs substitute more easily with other primary factors than higher-skilled jobs. The advantages of our approach are that we can rely on the most recent and the most disaggregate U.S. labor data available; we build upon the most recently available GTAP database; and, when applied to other economies, our approach is the initial contribution to a database of detailed labor statistics for several economies.

Keywords: Labor; Trade; CGE model; GTAP; Wage; Labor structure; Labor disaggregation (search for similar items in EconPapers)
JEL-codes: C68 F16 J31 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:36:y:2014:i:c:p:268-281

DOI: 10.1016/j.econmod.2013.09.030

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