Having produced changes in employment at the macroeconomic level, we can move on to simulating the changed distribution of employment at the microeconomic level. We present our approach to this simulation problem, which begins with identifying a pool of potential job recipients and the corresponding types of jobs they would be most likely to enter given current labor market conditions. We use this information to assign newly-created jobs to individuals and then to estimate their likely earnings and hours of work in their new jobs. We then use all of the information generated to find individuals already working that are most like the potential job recipients. A final step involves comparing new earnings to an estimate of each potential job recipient’s contributions to family income via their work on the family farm or non-farm enterprise.
Zacharias et al. (2019), Chapter 4, sections 4.4, 4.4.1, Appendix C, sections C.1, C.2