GTAP Resources: Resource Display
| GTAP Resource #7011 |
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"Incorporating Job Search Frictions and Unemployment into the GTAP Model " by Yuan, Wen Jin Abstract This research paper documents the development of GTAP-L, an extension of the standard GTAP (Global Trade Analysis Project) computable general equilibrium (CGE) model. This extension allows to simulate the effects of trade policy changes on employment, unemployment and wages in the United States. To illustrate the potential value of a GTAP model with frictional unemployment, we simulate the impacts of an illustrative simulation of a 25 percent increase in the power of the U.S. tariff rates on imports of Wearing Apparel (WAP GTAP sector) from all sources, using GTAP data for 2014 from Version 10 of the GTAP Data Base (Aguiar et al., 2019). The 141 regions in the GTAP database is aggregated to 7 regions, and we maintain the 65 GTAP sectors in our baseline. We compare the simulation results from the GTAP-L model VS. the standard GTAP model. We find that in GTAP-L, as a result of a 25 percent increase in the power of U.S. tariff on imports of wearing apparel, employment in the United States increases for unskilled labor but declines for skilled labor. The wage effects in the GTAP-L model is qualitatively similar to standard GTAP, though the magnitude differs. The magnitude of GTAP-L wage effects are driven mainly by unemployment consequences. |
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- Model extension/development - Labor market issues - North America |
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Public Access  Paper (796.1 KB) Replicated: 0 time(s) Presentation (1.2 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
