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A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa

Hans Lofgren and Martín Cicowiez ()

Journal of Global Economic Analysis, 2017, vol. 2, issue 1, 120-165

Abstract: The ease with which workers can move between sectors has a strong impact on how shocks affect an economy. This paper introduces an approach to labor mobility with frictions. Under the approach, worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers belonging to sector a move to a’, their efficiency shortfall compared to workers assigned to a’ is measured by a proximity parameter, 0 = proxa,a’ = 1. If proxa,a’

Keywords: Computable General Equilibrium Models; Labor Mobility; Factor Mobility; Wage Differentials; Development Planning and Policy (search for similar items in EconPapers)
Date: 2017
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DOI: 10.21642/JGEA.020102AF

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Handle: RePEc:gta:jnlgea:v:2:y:2017:i:1:p:120-165