The effects of Labour Market Reforms upon Unemployment and Income Inequalities: an agent based model
By Giovanni Dosi, Marcelo C. Pereira, Andrea Roventini, M. Virgillito. 2018
113 citations recorded by the source corpus.
This paper is meant to analyse the effects of labour market structural reforms by means of an agent-based model. Building on Dosi et al., (2016b) we introduce a policy regime change characterized by a set of structural reforms on the labour market, keeping constant the structure of the capital- and consumption-good markets. Confirming a recent IMF report (Jaumotte and Buitron, 2015), the model shows how labour market structural reforms reducing workersu bargaining power and compressing wages tend to increase (i) unemployment, (ii) functional income inequality, and (iii) personal income inequality. We further undertake a global sensitivity analysis on key variables and parameters which confirms the robustness of our findings.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/d3e638f96939a84ed60c2d71e45b00562cbbe4da
How researchers see this paper
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In Economics and Econometrics
- Andrea Roventini
- Giovanni Dosi
- M. Virgillito
- Marcelo C. Pereira
- Alex Coad
- Giorgio Fagiolo
- Francesco Lamperti
- Mauro Napoletano
Citations in the corpus
- More is different ... and complex! the case for agent-based macroeconomics (2019, methodology): “…employed, an important domain of analysis regards the sensitivity of the model to parameter changes, through different methods including Kriging meta-modeling (Salle and Yıldızoğlu, 2014; Bargigli et al., 2016; Dosi et al., 2017d,c, 2018c), and machine-learning surrogates (Lamperti et al., 2018c).”
- When more Flexibility Yields more Fragility: the Microfoundations of Keynesian Aggregate Unemployment (2017, methodology): “…validating the model and present a set of stylised facts that we are able to replicate, in addition to the long list of stylised facts both at the firm and at the macro-level which the incumbent family of the K+S models is able to reproduce (see Dosi et al., 2016b, for an extensive discussion).”