Modeling the labor market in the aftermath of a disaster: Two perspectives
This paper presents two opposite perspectives on the labor market in the aftermath of a disaster. The first posits a production sector that is non-tradeable and a labor market with total mobility. This is modeled using agent based simulation. The second presents a production sector that is fully tra...
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| Main Authors: | , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
30 May 2018
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| In: |
International journal of disaster risk reduction
Year: 2018, Volume: 31, Pages: 419-434 |
| DOI: | 10.1016/j.ijdrr.2018.05.021 |
| Online Access: | Verlag, Volltext: https://doi.org/10.1016/j.ijdrr.2018.05.021 Verlag, Volltext: http://www.sciencedirect.com/science/article/pii/S2212420918306514 
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| Author Notes: | A. Yair Grinberger, Peleg Samuels |
MARC
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| 520 | |a This paper presents two opposite perspectives on the labor market in the aftermath of a disaster. The first posits a production sector that is non-tradeable and a labor market with total mobility. This is modeled using agent based simulation. The second presents a production sector that is fully tradeable and a labor market that is perfectly immobile. This is modeled using traditional micro-economic modeling and numerical simulation. Outcomes from the two approaches are compared. In the no-disaster case, participation rates and wages under both approaches settle down to a low-level equilibrium albeit at different rates. In the case of a disaster, outcomes are very different. Under the agent based model labor market mobility results in solutions being found outside the area. In the micro-economic approach workers absorb the recovery process within the area readjusting their demand for labor. When population movement is introduced the system reorganizes at a new equilibrium. The results highlight first, the importance of labor mobility and flexibility and second, the divergent absorption costs in determining the long-term outcomes of a disaster. | ||
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| 650 | 4 | |a Equilibrium | |
| 650 | 4 | |a Labor markets | |
| 650 | 4 | |a Numerical simulation | |
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