@article{Flaig:332388,
      recid = {332388},
      author = {Flaig, Dorothee and Grethe, Harald and McDonald, Scott},
      title = {Imperfect labour mobility in a CGE model: Does factor  specific productivity matter?},
      address = {2013},
      pages = {24},
      year = {2013},
      note = {Presented at the 16th Annual Conference on Global Economic  Analysis, Shanghai, China},
      abstract = {CGE models usually make extreme assumptions about labour  mobility: labour is either perfectly mobile between sectors  or fixed to a sector. With perfect mobility of labour,  simulations lead to reallocation of labour among different  sectors of the economy. The labour productivity can vary  strongly between different sectors, reflecting the fact  that labour of a specific type, e.g. unskilled workers, may  not be homogenous. When labour moves from less to more  productive sectors, an economy experiences a de facto  increase in labour endowments, this obviously effects the  results and becomes interesting when questioning the sector  specificity of labour productivity. Separating the impacts  of implicit increases in labour endowments from other  impacts arising from labour reallocation is therefore  important for result interpretation. For this purpose this  study uses a CGE model in which labour reallocation is  imperfect with a migration function governing the movement  between sectors. We thus control the physical flows of  labour which is a precondition to allow for depicting  factor specific productivity. Two scenarios are run in  order to analyse the size and relevance of the  productivity, effect: the first scenario causing movement  from less productive to more productive industries, the  second scenario induces movement of labour from more  productive to less productive industries.},
      url = {http://ageconsearch.umn.edu/record/332388},
}