A Dynamic Model of Unemployment with Migration and Delayed Policy Intervention

Harding, Liliana and Neamtu, Mihaela (2018) A Dynamic Model of Unemployment with Migration and Delayed Policy Intervention. Computational Economics, 51 (3). 427–462. ISSN 0927-7099

[img]
Preview
PDF (Published manuscript) - Published Version
Available under License Creative Commons Attribution.

Download (1177kB) | Preview

    Abstract

    The purpose of this paper is to build and analyse a model of unemployment, where jobs search is open to both natives and migrant workers. Markets and government intervention respond jointly to unemployment when creating new jobs. Full employment of resources is the focal point of policy action, stimulating vacancy creation. We acknowledge that policy is implemented with delays, and capture labour market outcomes by building a non-linear dynamic system. We observe jobs separation and matching, and extend our model to an open economy with migration and delayed policy intervention meant to reduce unemployment. We analyse the stability behaviour of the resulting equilibrium for our dynamic system, including models with Dirac and weak kernels. We simulate our model with alternative scenarios, where policy action towards jobs creation considers both migration and unemployment, or just unemployment.

    Item Type: Article
    Additional Information: © The Author(s) 2016 This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
    Uncontrolled Keywords: unemployment,dynamic models,distributed delay,hopf bifurcation,migration,matching
    Faculty \ School: Faculty of Social Sciences > School of Economics
    Depositing User: Pure Connector
    Date Deposited: 24 Sep 2016 01:21
    Last Modified: 05 Aug 2018 00:47
    URI: https://ueaeprints.uea.ac.uk/id/eprint/60005
    DOI: 10.1007/s10614-016-9610-3

    Actions (login required)

    View Item