MICHELLE: Modelling the Impact of a Circular Holistic Economy on the Labour market and Lifelong lEarning (MICHELLE)

In the past two years, a few exploratory studies were been published on the employment impact
of the circular economy (CE). Most of these studies had limited budgets and used methodologies
with significant limitations, including:
- the use of data based on the NACE sector codes, which are not detailed and based on selfreporting;
- many databases contain little or no information on small companies;
- the use of input-outputmodeling, which is an inaccurate method for forecasting.
This research project aims to be the first to quantify the employment impact of the CE based on
state-of-the-art methods (general equilibrium modeling) and prima data sources (Belgian
Crossroads Bank for Social Security). We also propose to refine the NACE sector codes in order to
get a more accurate classification for the CE, and we will explore other bases (then NACE) to
classify data of CE companies.
More specifically, this research project will:
- develop and apply a macro-economic framework covering economy-wide impacts of the
transition to a circular economy (i.e. both direct, indirect and induced),
- provide an additional analysis on
o the development and utilization of employee skills linked to the CE.
o the impacts on international trade, on the social economy, on the informal economy and on
interaction effects between the CE on the one hand, and the sharing economy and Industry 4.0 on
the other hand.
- take into account all circular economy strategies including reuse, refurbishment, servitization,
etc.;
- provide recommendations and tools to the stakeholders in the advisory committee regarding labour market strategies, skills needs, governance and strategic alliances etc. .