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Dynamics of probabilistic labor markets: statistical physics perspective

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  • He Chen
  • Jun-ichi Inoue
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    Abstract

    We introduce a toy probabilistic model to analyze job-matching processes in recent Japanese labor markets for university graduates by means of statistical physics. We show that the aggregation probability of each company is rewritten by means of non-linear map under several conditions. Mathematical treatment of the map enables us to discuss the condition on which the rankings of arbitrary two companies are reversed during the dynamics. The so-called `mismatch' between students and companies is discussed from both empirical and theoretical viewpoints.

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    File URL: http://arxiv.org/pdf/1309.5158
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    Bibliographic Info

    Paper provided by arXiv.org in its series Papers with number 1309.5158.

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    Date of creation: Sep 2013
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    Publication status: Published in Lecture Notes in Economics and Mathematical Systems, Vol. 662, pp. 53-64, "Managing Market Complexity", Springer (2012)
    Handle: RePEc:arx:papers:1309.5158

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    1. Casares, Miguel & Moreno, Antonio & Vázquez Pérez, Jesús, 2012. "An Estimated New-Keynesian Model with Unemployment as Excess Supply of Labor," DFAEII Working Papers 2012-07, University of the Basque Country - Department of Foundations of Economic Analysis II.
    2. Roberto Gabriele, 2002. "Labor Market Dynamics and Institutions: an Evolutionary Approach," LEM Papers Series 2002/07, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
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