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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 ()

No 8151, Policy Research Working Paper Series from The World Bank

Abstract: The ease with which workers can move between sectors has a strong impact on the effects on labor markets of shocks such as changes in world prices or migration flows. This paper introduces an approach to labor mobility with frictions under which worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers in sector a move to sector a', their efficiency shortfall due to a capability misfit compared to what is needed in a'(and possessed by workers already in a') is measured by a proximity parameter, 0 ? proxa,a'? 1. If proxa,a'

Keywords: Trade and Multilateral Issues; Rural Labor Markets; Trade Policy; Rules of Origin (search for similar items in EconPapers)
Date: 2017-07-20
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