• abm labour market

This thesis presents an analysis, with an agent-based model, of the effect of decentralized wage setting among different countries. ABM provide an alternative methodology to build macroeconomic models from the bottom up (Gallegati et al., 2019). Moreover they are constructed using micro foundations which are based on realistic assumptions, implying that models are rooted in the actual empirical micro-economic evidence, departing from the unrealistic "representative agent"(Kirman, 92).
The model used is a multi-country, multi-industry agent-based model. Each country in the economy has a Schumpeterian engine of endogenous technical change and a Keynesian demand generation mechanisms. Interactions among economies occur via trade flows, implying a competition in international
markets(Dosi et al., 2019). There are three dierent wage formation mechanism :
Wages formation at national level, Wages formation at sector level, Mixed wage formation.
I will investigate the behaviour of all three setting, analysing in particular the impact on GDP per capita, wage level, average productivity of the economy. In all these three Macro variable the centralized wage setting perform better at a signicant level. Then I will analyse sector level variables, showing that in the centralized setting countries tend to specialise in sectors with higher level of productivity, implying the above-mentioned higher level of productivity of the economy.