Introducing Roy-like Worker Assignment into Computable General Equilibrium Models

Jaewon Jung ()
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Jaewon Jung: Université de Cergy-Pontoise, THEMA

No 2018-06, Thema Working Papers from THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS

Abstract: This paper develops a new CGE 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 technology-upgrading mechanism.

Keywords: Technology upgrading; Heterogeneous firms/workers; Roy model; Computable general equilibrium (CGE); Gains from trade. (search for similar items in EconPapers)
JEL-codes: C68 D58 F16 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cmp and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2018-06

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