Introducing Roy-like worker assignment into computable general equilibrium models

Jaewon Jung

Applied Economics Letters, 2020, vol. 27, issue 6, 503-510

Abstract: This article develops a new computable general equilibrium model incorporating a Roy-like worker assignment in which heterogeneous workers endogenously sort into different technologies based on their comparative advantage. The model predicts significantly higher welfare-improving effects of trade liberalization due to the technology-upgrading mechanism.

Date: 2020
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DOI: 10.1080/13504851.2019.1637510

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