The authors combine macro-economic model outputs with a dynamic labour market simulation to study how, within a context of green transitions, productivity shifts in different sectors and regions may affect occupation-level unemployment in Brazil. Specifically, the study combines a data-driven occupational mobility network with an agent-based labour market model to account for limited mobility and second order frictions in the labour market. With this approach, they discuss how changes in labour demand affect occupations depending on how much mobility may be expected to and from other occupations. They find that increased productivity in manufacturing results in fewer labour market frictions than increased productivity in agriculture.
Berryman, A., Bücker, J., Senra de Moura, F., Barbrook-Johnson, P., Hanusch, M., Mealy, P., del Rio-Chanona, M. & Farmer, J.D. (2023). 'Modelling labour market transitions: the case of productivity shifts in Brazil'. Case study in: New Economics Models of Energy Innovation and Transition: Addressing new questions and providing better answers. EEIST Report.