CoPS/IMPACT Working Paper Number G-283

Title: Creating a labor-market module for USAGE-TERM: illustrative application, theory and data

Authors: P.B. Dixon and M.T. Rimmer


This paper documents a project carried out under contract with the U.S. Department of Commerce. As stated in the contract, the aim was to:
"provide the means to conduct analyses of the impacts of trade on employment by industry and occupation in regional labor markets via the creation of a labor market module add-on to the dynamic version of USAGE-TERM. The resultant labor-market enhanced dynamic USAGE-TERM model will give users the capability to identify structural adjustment problems arising from difficulties that workers displaced by trade may have in transferring their skills to alternative employment possibilities in other industries and/or regions."
In the paper we provide technical documentation on how the labor-market module was created and illustrate its application by simulating the effects on regional labor markets of a hypothetical reduction in U.S. exports of Machinery and equipment.

JEL classification: C68, J62, R13

Keywords: regional labor markets; multi-regional CGE; dynamic CGE; labor mobility

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