A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa

Autores
Lofgren, Hans; Cicowiez, Martín
Año de publicación
2017
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
The ease with which workers can move between sectors has a strong impact on how shocks affect an economy. This paper introduces an approach to labor mobility with frictions. Under the approach, worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers belonging to sector a move to a’, their efficiency shortfall compared to workers assigned to a’ is measured by a proximity parameter, 0 ≤ proxa,a’ ≤ 1. If proxa,a’ < 1, the efficient quantity reaching a’ is below the physical quantity. In this setting, profit-maximizing producers, facing given physical worker wages (which may vary depending on sectoral affiliation), pay the same wage per efficiency unit irrespective of origin and thus pay less efficient workers a lower wage per physical unit. This approach to labor mobility is tested in a static CGE model that is applied to an illustrative sub-Saharan African dataset with sector proximities defined using the approach of the product-space literature. Simulations of positive export price shocks show that, the higher the proximities, the stronger the labor reallocation and the welfare gains.
Facultad de Ciencias Económicas (FCE)
Materia
Ciencias Económicas
Computable General Equilibrium Models
Labor Mobility
Factor Mobility
Wage Differentials
Development Planning and Policy
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by/3.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/80055
Acceder
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network_name_str SEDICI (UNLP)
spelling A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan AfricaLofgren, HansCicowiez, MartínCiencias EconómicasComputable General Equilibrium ModelsLabor MobilityFactor MobilityWage DifferentialsDevelopment Planning and PolicyThe ease with which workers can move between sectors has a strong impact on how shocks affect an economy. This paper introduces an approach to labor mobility with frictions. Under the approach, worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers belonging to sector a move to a’, their efficiency shortfall compared to workers assigned to a’ is measured by a proximity parameter, 0 ≤ proxa,a’ ≤ 1. If proxa,a’ &lt; 1, the efficient quantity reaching a’ is below the physical quantity. In this setting, profit-maximizing producers, facing given physical worker wages (which may vary depending on sectoral affiliation), pay the same wage per efficiency unit irrespective of origin and thus pay less efficient workers a lower wage per physical unit. This approach to labor mobility is tested in a static CGE model that is applied to an illustrative sub-Saharan African dataset with sector proximities defined using the approach of the product-space literature. Simulations of positive export price shocks show that, the higher the proximities, the stronger the labor reallocation and the welfare gains.Facultad de Ciencias Económicas (FCE)2017info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArticulohttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdf120-165http://sedici.unlp.edu.ar/handle/10915/80055enginfo:eu-repo/semantics/altIdentifier/doi/10.21642/JGEA.020102AFinfo:eu-repo/semantics/altIdentifier/doi/10.21642/JGEA.020102AFinfo:eu-repo/semantics/altIdentifier/issn/2377-2999info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/3.0/Creative Commons Attribution 3.0 Unported (CC BY 3.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:14:41Zoai:sedici.unlp.edu.ar:10915/80055Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:14:42.196SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
title A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
spellingShingle A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
Lofgren, Hans
Ciencias Económicas
Computable General Equilibrium Models
Labor Mobility
Factor Mobility
Wage Differentials
Development Planning and Policy
title_short A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
title_full A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
title_fullStr A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
title_full_unstemmed A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
title_sort A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
dc.creator.none.fl_str_mv Lofgren, Hans
Cicowiez, Martín
author Lofgren, Hans
author_facet Lofgren, Hans
Cicowiez, Martín
author_role author
author2 Cicowiez, Martín
author2_role author
dc.subject.none.fl_str_mv Ciencias Económicas
Computable General Equilibrium Models
Labor Mobility
Factor Mobility
Wage Differentials
Development Planning and Policy
topic Ciencias Económicas
Computable General Equilibrium Models
Labor Mobility
Factor Mobility
Wage Differentials
Development Planning and Policy
dc.description.none.fl_txt_mv The ease with which workers can move between sectors has a strong impact on how shocks affect an economy. This paper introduces an approach to labor mobility with frictions. Under the approach, worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers belonging to sector a move to a’, their efficiency shortfall compared to workers assigned to a’ is measured by a proximity parameter, 0 ≤ proxa,a’ ≤ 1. If proxa,a’ &lt; 1, the efficient quantity reaching a’ is below the physical quantity. In this setting, profit-maximizing producers, facing given physical worker wages (which may vary depending on sectoral affiliation), pay the same wage per efficiency unit irrespective of origin and thus pay less efficient workers a lower wage per physical unit. This approach to labor mobility is tested in a static CGE model that is applied to an illustrative sub-Saharan African dataset with sector proximities defined using the approach of the product-space literature. Simulations of positive export price shocks show that, the higher the proximities, the stronger the labor reallocation and the welfare gains.
Facultad de Ciencias Económicas (FCE)
description The ease with which workers can move between sectors has a strong impact on how shocks affect an economy. This paper introduces an approach to labor mobility with frictions. Under the approach, worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers belonging to sector a move to a’, their efficiency shortfall compared to workers assigned to a’ is measured by a proximity parameter, 0 ≤ proxa,a’ ≤ 1. If proxa,a’ &lt; 1, the efficient quantity reaching a’ is below the physical quantity. In this setting, profit-maximizing producers, facing given physical worker wages (which may vary depending on sectoral affiliation), pay the same wage per efficiency unit irrespective of origin and thus pay less efficient workers a lower wage per physical unit. This approach to labor mobility is tested in a static CGE model that is applied to an illustrative sub-Saharan African dataset with sector proximities defined using the approach of the product-space literature. Simulations of positive export price shocks show that, the higher the proximities, the stronger the labor reallocation and the welfare gains.
publishDate 2017
dc.date.none.fl_str_mv 2017
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Articulo
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://sedici.unlp.edu.ar/handle/10915/80055
url http://sedici.unlp.edu.ar/handle/10915/80055
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.21642/JGEA.020102AF
info:eu-repo/semantics/altIdentifier/doi/10.21642/JGEA.020102AF
info:eu-repo/semantics/altIdentifier/issn/2377-2999
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by/3.0/
Creative Commons Attribution 3.0 Unported (CC BY 3.0)
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by/3.0/
Creative Commons Attribution 3.0 Unported (CC BY 3.0)
dc.format.none.fl_str_mv application/pdf
120-165
dc.source.none.fl_str_mv reponame:SEDICI (UNLP)
instname:Universidad Nacional de La Plata
instacron:UNLP
reponame_str SEDICI (UNLP)
collection SEDICI (UNLP)
instname_str Universidad Nacional de La Plata
instacron_str UNLP
institution UNLP
repository.name.fl_str_mv SEDICI (UNLP) - Universidad Nacional de La Plata
repository.mail.fl_str_mv alira@sedici.unlp.edu.ar
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