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GTAP Resource #6840

"Modeling Employment Transitions in the GTAP-RD model"
by Xiao, Jingliang and Erwin Corong

Trade plays an important role in driving economic growth and job creation. However, the gains from trade can be unequally distributed across countries, sectors and workers with consequent effects on household incomes. Understanding the economic link between changes in global trade and country-level employment requires the use of a global economic model capable of capturing economic interactions and detailed labor market mechanisms. This paper extends the standard labor market specification in the GTAP Recursive Dynamic (GTAP-RD) model by incorporating an employment transition matrix approach which captures employment reallocation across occupation types following earlier work by Dixon, Johnson and Rimmer (2008) for the United States and Chen and Xiao (2018) for Canada. We highlight the usefulness of this new labor market specification in GTAP-RD by tracking employment reallocation across various occupation types, into and out of the labor force in response to changing ware rates associated with trade policy changes in North American Countries.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Created: Xiao, J. (4/11/2023)
Updated: Xiao, J. (6/5/2023)
Visits: 445
- Model extension/development
- Other data bases and data issues
- Trade and gender
- North America

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