Applied General Equilibrium Modelling and Labour Market Forecasting

This paper describes the application of the MONASH CGE model to labour market forecasting in Australia. The method consists of solving a top-down sequence of models that proceeds from a macro scenario to the CGE model to various labour market extensions. The extensions involve ex post processing of the MONASH results based on employment data from the census and a number of large sample surveys. Their purpose is to greatly increase the amount of information furnished by the simulations at modest additional cost, and hence to support the use of the system for analysing the efficient allocation of training resources.