Dynamic models of unemployment
|Author:||Bc. Martin Čihák|
|Year:||1994 - summer|
|Leaders:|| prof. Ing. Miloslav Vošvrda CSc.
|Work type:|| Bachelors
|Awards and prizes:||Bolzano Award|
|Abstract:||The paper analyzes dynamic models of unemployment. It leads to several conclusions, the most important one probably being the finding that heterogeneity tends to slow down labor market adjustments, and that the type of adjustment depends crucially on the degree of uncertainty of participants in the labor market.
In the fist part, I start from a basic deterministic model of unemployment and show its modifications for the case of segmentation and under the existence of sectors. In the second part, I make the same steps for the stochastic model of unemployment, based on Markov chains. In the third part, I introduce a more general model, which pays greater attention to decisions of participants and can also better explain the real dynamics. In the final part, I analyze empirical evidence on the dynamic models.