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GTAP Resource #7920

"14B: Disaggregating Labor Payments"
Authors: Corong, Erwin and Pattawee Puangchit


Abstract
The treatment of labor flows in the GTAP Data Base has evolved substantially across releases. In the first three versions, labor was represented as a single factor alongside land and capital. GTAP 4 introduced a major revision by separating labor into skilled and unskilled categories (McDougall, Elbehri, and Truong 1998; Liu et al. 1998a; Liu et al. 1998b).3 This two-way labor split was then retained and extended in GTAP versions 5 through 8 as additional countries were incorporated into the database (Narayanan, Aguiar, and McDougall 2012).

Early attempts to improve the labor accounts faced important data constraints. Liu et al. 1998a; Liu et al. 1998b examined the use of ILO data for GTAP 4, but the available industry classifications were too aggregated for detailed sectoral analysis, and no unified source reported wages jointly by occupation and industry. These limitations restricted the scope for constructing a more refined labor database within the GTAP framework. In response to these shortcomings, later work revisited the underlying data sources. Efforts undertaken around 2009 reassessed ILO data and compared them with country-specific evidence for China and the U.S. (Mirza, Narayanan, and Leewuen 2010). This line of work clarified the weaknesses of the existing labor treatment and created the basis for a broader revision of the labor database.


Resource Details () GTAP Keywords
Category: GTAP 12 Data Base Documentation
Status: Published
By/In: Center for Global Trade Analysis
Date: 2026
Version:
Created: McIntire, H. (6/10/2026)
Updated: McIntire, H. (6/10/2026)
Visits: 23
- GTAP Data Base and extensions


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