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Imperfect competition in regional labor-markets - a computable general equilibrium-analysis

Harrigan, F. and McGregor, P.G. and Swales, J.K. and Dourmashkin, N. (1992) Imperfect competition in regional labor-markets - a computable general equilibrium-analysis. Environment and Planning A, 24 (10). pp. 1463-1481. ISSN 0308-518X

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Abstract

The system-wide impacts of imperfect competition in the regional labour market are examined by means of a macro - micro simulation model (AMOS) parameterised on Scottish data. A number of theories of the operation of the regional labour market are reviewed and it is indicated how these can be operationalised within AMOS through the adoption of different labour-market closures. Two sets of simulations are performed. The first involves nominal and real wage shocks to the regional economy. In the second, a demand disturbance is introduced under various labour-market closures. The sensitivity of the results to assumptions concerning the openness of the regional economy and the flexibility of the production technology is also discussed.