Labor Market Dynamics and Institutions: an Evolutionary Approach
AbstractWe analyse labor market dynamics with an agent based model, which replicates a set of stylized facts in the labor market as well as aggregate regularities. We are able to reproduce the Beveridge curve, job creation and destruction flows, a persistent unemployment level, and wages stickiness. On the aggregate level, we observe a self-enforcing process of real income growth and average productivity growth. Model simulations allow us study the role of dynamic interactions among agents -individuals and firms- in a changing environment shaped by institutions. The key features are the microfoundations of the processes governing the labor market, such as job search by individuals, and matching and bargaining among firms and potential employees
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Bibliographic InfoPaper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2002/07.
Date of creation: 11 Dec 2002
Date of revision:
Unemployment; Beveridge curve; Matching; Technical Change.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-08-16 (All new papers)
- NEP-EVO-2002-08-16 (Evolutionary Economics)
- NEP-LAB-2002-08-16 (Labour Economics)
- NEP-PKE-2002-08-16 (Post Keynesian Economics)
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- He Chen & Jun-ichi Inoue, 2013. "Statistical Mechanics of Labor Markets," Papers 1309.5156, arXiv.org.
- He Chen & Jun-ichi Inoue, 2013. "Dynamics of probabilistic labor markets: statistical physics perspective," Papers 1309.5158, arXiv.org.
- He Chen & Jun-ichi Inoue, 2013. "Learning curve for collective behavior of zero-intelligence agents in successive job-hunting processes with a diversity of Jaynes-Shannon's MaxEnt principle," Papers 1309.5053, arXiv.org.
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