WorkSim: A Calibrated Agent-Based Model of the Labor Market Accounting for Workers' Stocks and Gross Flows
Authored by Gerard Ballot, Jean-Daniel Kant, Olivier Goudet
Date Published: 2017
DOI: 10.1007/s10614-016-9577-0
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Abstract
This paper presents an agent-based model of the labor market. It
simulates the market in the recent period at the aggregate level and at
the level of the principal categories of labor, on the basis of the
decisions of heterogeneous agents, firms and individuals, who interact.
These decisions rely on individual computations of profits and
utilities, although rationality is bounded in such a complex
environment. The theoretical structure that underlies the decisions is
the search concept. We apply this framework to the case of France in
2011. The model is at a scale of 1/4700. It is fairly detailed on the
institutions of the labor market that constrain the agents' decisions.
Finally it is calibrated by a powerful algorithm to reproduce a large
number of variables of interest. The calibrated model presents a
consistent accounting system of the gross flows of the individuals
between the main states, employment, distinguishing open ended contracts
and fixed duration contracts, unemployment and inactivity. The
simulation of the gross flows accounts enables us to analyze the
patterns of mobility in a way that the observed statistics on gross
flows, which are partial, cannot do. The model then characterizes the
nature of the labor market under study, reproducing the high proportion
of the fixed duration contracts in the hiring flows, and it points to a
dualism of the French labor market.
Tags
Simulation
Innovation
Unemployment