Enriching U.S. Labor Results in a Multi-Regional CGE Model

Posted: 18 Oct 2012 Last revised: 29 Nov 2013

See all articles by Caitlyn Carrico

Caitlyn Carrico

Purdue University - Department of Agricultural Economics

Marinos E. Tsigas

U.S. International Trade Commission

Date Written: August 10, 2012

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

JEL Classification: C68, F16, J31

Suggested Citation

Carrico, Caitlyn and Tsigas, Marinos E., Enriching U.S. Labor Results in a Multi-Regional CGE Model (August 10, 2012). Economic Modelling, Vol. 36, pp. 268-281, 2014, Available at SSRN: https://ssrn.com/abstract=2163242 or http://dx.doi.org/10.2139/ssrn.2163242

Caitlyn Carrico

Purdue University - Department of Agricultural Economics ( email )

West Lafayette, IN 47907-1145
United States

Marinos E. Tsigas (Contact Author)

U.S. International Trade Commission ( email )

500 E Street SW
Washington, DC 20436
United States

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