TY  - JOUR
TI  - EUROLAB: A Multidimensional Labour Supply-Demand Model for EU Countries
AU  - Narazani, Edlira
AU  - Colombino, Ugo
AU  - Palma, Bianey
VL  - 16
IS  - 3
PY  - 2023
DA  - 2023/12/31
SP  - 49-76
C1  - IJM 2023;16(3):49-76
DO  - 10.34196/ijm.00288
UR  - https://doi.org/10.34196/ijm.00288
AB  - This paper describes EUROLAB, a labour supply-demand microsimulation model that relies on EUROMOD, the static microsimulation model for the European Union countries. EUROLAB is built on a multidimensional discrete choice model of labour supply and accounts for unemployment. As distinct from non-participation. The model estimates individual changes in supplied hours of work and participation as a reaction to a hypothetical or real tax-transfer reform, often referred to in the literature as “second-order” effects. Furthermore, the model allows for the demand-side effects of a labour market that, depending on how elastic it is, would lead to different employment levels and wage rates when the market reaches its equilibrium. The model is unique in covering 27 countries under the same specification of preferences, opportunity set representation and the same concept of income and working hours. We illustrate the usefulness of the model by showing several examples of EUROLAB, using both the one-dimensional and multidimensional versions. Potential extensions of the model are also discussed in the paper.
KW  - Behavioural Models
KW  - Discrete Choice Modelling
KW  -  Labour supply
KW  - Labour market equilibrium
JF  - IJM
SN  - 1747-5864
PB  - International Journal of Microsimulation
ER  -