Comparison of Optimal Control Solutions in a Labor Market Model



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. The name is absent
2. THE CHANGING RELATIONSHIP BETWEEN FEDERAL, STATE AND LOCAL GOVERNMENTS
3. Psychological Aspects of Market Crashes
4. The name is absent
5. How we might be able to understand the brain
6. The name is absent
7. The demand for urban transport: An application of discrete choice model for Cadiz
8. Ongoing Emergence: A Core Concept in Epigenetic Robotics
9. The name is absent
10. Sex differences in the structure and stability of children’s playground social networks and their overlap with friendship relations