Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market

Zeynep Akgul; Caitlyn Carrico; Marinos Tsigas

doi:10.1142/9789811233630_0007

Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market

Zeynep Akgul
, Caitlyn Carrico
, Marinos Tsigas

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Academic › peer-review

Abstract

Recent advances in theoretical and empirical trade literature on heterogeneous firms confirm that regulatory (fixed) costs can prevent firms with low-productivity levels from producing and exporting. Majority of firms struggle to survive particularly in industries where these costs are high,potentially leading to substantial effects on the labor market. This paper investigates the effect of reductions in fixed costs on the US labor market based on a firm-heterogeneity extension of the Global Trade Analysis Project (GTAP-HET), Computable General Equilibrium (CGE) model, where the US labor data are expanded to 22 occupations. This extension enriches the labor market analysis and provides an avenue to investigate the factors determining fixed costs. Particularly, we distinguish between the labor types that are employed to cover fixed costs as opposed to those that cover variable costs.

Original language	English
Title of host publication	Policy Analysis and Modeling of the Global Economy
Subtitle of host publication	A Festschrift Celebrating Thomas Hertel
Editors	P. Dixon, J. Francois, D. van der Mensbrugghe
Publisher	World Scientific Publishing
Chapter	7
Pages	199-248
ISBN (Electronic)	9789811233647, 9789811233630
ISBN (Print)	9789811233623
DOIs	https://doi.org/10.1142/9789811233630_0007
Publication status	Published - 2021

Publication series

Name	World Scientific Studies in International Economics
Volume	76
ISSN (Print)	1793-3641

Access to Document

10.1142/9789811233630_0007

Cite this

Akgul, Z., Carrico, C., & Tsigas, M. (2021). Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market. In P. Dixon, J. Francois, & D. van der Mensbrugghe (Eds.), Policy Analysis and Modeling of the Global Economy: A Festschrift Celebrating Thomas Hertel (pp. 199-248). (World Scientific Studies in International Economics; Vol. 76). World Scientific Publishing. https://doi.org/10.1142/9789811233630_0007

Akgul, Zeynep ; Carrico, Caitlyn ; Tsigas, Marinos. / Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market. Policy Analysis and Modeling of the Global Economy: A Festschrift Celebrating Thomas Hertel. editor / P. Dixon ; J. Francois ; D. van der Mensbrugghe. World Scientific Publishing, 2021. pp. 199-248 (World Scientific Studies in International Economics).

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abstract = "Recent advances in theoretical and empirical trade literature on heterogeneous firms confirm that regulatory (fixed) costs can prevent firms with low-productivity levels from producing and exporting. Majority of firms struggle to survive particularly in industries where these costs are high,potentially leading to substantial effects on the labor market. This paper investigates the effect of reductions in fixed costs on the US labor market based on a firm-heterogeneity extension of the Global Trade Analysis Project (GTAP-HET), Computable General Equilibrium (CGE) model, where the US labor data are expanded to 22 occupations. This extension enriches the labor market analysis and provides an avenue to investigate the factors determining fixed costs. Particularly, we distinguish between the labor types that are employed to cover fixed costs as opposed to those that cover variable costs. ",

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Akgul, Z, Carrico, C & Tsigas, M 2021, Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market. in P Dixon, J Francois & D van der Mensbrugghe (eds), Policy Analysis and Modeling of the Global Economy: A Festschrift Celebrating Thomas Hertel. World Scientific Studies in International Economics, vol. 76, World Scientific Publishing, pp. 199-248. https://doi.org/10.1142/9789811233630_0007

Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market. / Akgul, Zeynep; Carrico, Caitlyn; Tsigas, Marinos.
Policy Analysis and Modeling of the Global Economy: A Festschrift Celebrating Thomas Hertel. ed. / P. Dixon; J. Francois; D. van der Mensbrugghe. World Scientific Publishing, 2021. p. 199-248 (World Scientific Studies in International Economics; Vol. 76).

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Academic › peer-review

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Akgul Z, Carrico C, Tsigas M. Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market. In Dixon P, Francois J, van der Mensbrugghe D, editors, Policy Analysis and Modeling of the Global Economy: A Festschrift Celebrating Thomas Hertel. World Scientific Publishing. 2021. p. 199-248. (World Scientific Studies in International Economics). doi: 10.1142/9789811233630_0007

Labor Composition of Fixed Costs, Heterogeneous Firms, and the US Labor Market

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