Chapter 26. The Labor Market in Computable General Equilibrium Models This chapter reviews options of labor market modeling in a computable general equilibrium framework. On the labor supply side two principal modeling options are distinguished and discussed: aggregated representative households and microsimulation based on individual household data. On the labor demand side we focus on the substitution possibilities between different types of labor in production. With respect to labor market coordination we discuss several wage forming mechanisms and involuntary unemployment.