Table 1
Endogenous Variables in the Model.
|
Description |
Variable |
|
Wages |
w |
|
Vacancies |
V |
|
Inflow of vacancies |
VI |
|
Total unemployment |
U |
|
Total employment |
E |
|
Short-term unemployment |
US |
|
Monthly short-term unemployment |
Uk, k= 1,..., 12 |
|
Long-term unemployment |
UL |
|
Probability of escape from unemployment |
π |
|
Total flow from employment to unemployment |
FEU |
|
Flow from unemployment to newly created jobs; job creation |
FUEV |
|
Flow from employment to not-in-labour-force; job destruction |
FENV |
|
Flow from not-in-labour-force to newly created jobs; job creation |
FNEV |
|
Flow of new vacancies to unemployed workers |
VOU |
Table 2
Exogenous Variables in the Model.
|
Description |
Variable |
|
Flow of vacancies to non-unemployed workers |
V OEX |
|
Outflow from unemployment to employment other than job creation |
FUEX |
|
Outflow from employment to unemployment other than job destruction |
FEU X |
|
Added value per worker |
y |
|
Interest rate |
r |
|
Lump-sum taxes |
τ |
|
Unemployment benefits |
b |
|
Proportion of long-term unemployed in ALMPs |
λ |
3 The Control Methods
3.1 Purpose of the Control
We consider the unemployment rate to be the output of the model. The control
objective is to generate a policy for ALMPs that reduces the unemployment
More intriguing information
1. Does South Africa Have the Potential and Capacity to Grow at 7 Per Cent?: A Labour Market Perspective2. Exchange Rate Uncertainty and Trade Growth - A Comparison of Linear and Nonlinear (Forecasting) Models
3. PROTECTING CONTRACT GROWERS OF BROILER CHICKEN INDUSTRY
4. Economic Evaluation of Positron Emission Tomography (PET) in Non Small Cell Lung Cancer (NSCLC), CHERE Working Paper 2007/6
5. AJAE Appendix: Willingness to Pay Versus Expected Consumption Value in Vickrey Auctions for New Experience Goods
6. American trade policy towards Sub Saharan Africa –- a meta analysis of AGOA
7. The Tangible Contribution of R&D Spending Foreign-Owned Plants to a Host Region: a Plant Level Study of the Irish Manufacturing Sector (1980-1996)
8. The name is absent
9. Running head: CHILDREN'S ATTRIBUTIONS OF BELIEFS
10. Can genetic algorithms explain experimental anomalies? An application to common property resources