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A Dynamic Model of Unemployment with Migration and Delayed Policy Intervention

Author

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  • Liliana Harding

    (University of East Anglia)

  • Mihaela Neamţu

    (West University of Timişoara)

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.

Suggested Citation

  • Liliana Harding & Mihaela Neamţu, 2018. "A Dynamic Model of Unemployment with Migration and Delayed Policy Intervention," Computational Economics, Springer;Society for Computational Economics, vol. 51(3), pages 427-462, March.
    • Handle: RePEc:kap:compec:v:51:y:2018:i:3:d:10.1007_s10614-016-9610-3
    DOI: 10.1007/s10614-016-9610-3
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    References listed on IDEAS

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    Cited by:

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    2. Oluwatayo Michael Ogunmiloro & Adesoji Abraham Obayomi & Gazali Oluwasegun Agboola, 2024. "The Menace of Ghost Workers, Job Racketeers, and Creators of Online Job Offer Scam Sites on Unemployment in Nigeria: A Mathematical Model Analysis and Control," SN Operations Research Forum, Springer, vol. 5(2), pages 1-38, June.
    3. Yoon Kyung Kwak & Ming Sheng Wang, 2022. "Exclusion or Inclusion: National Differential Regulations of Migrant Workers’ Employment, Social Protection, and Migrations Policies on Im/Mobilities in East Asia-Examples of South Korea and Taiwan," IJERPH, MDPI, vol. 19(23), pages 1-17, December.
    4. Anastasia Blouchoutzi & Georgios Tsaples & Dimitra Manou & Jason Papathanasiou, 2023. "Investigating Public–Private Cooperation in Migrant Labor Market Integration: A System Dynamics Study to Explore the Challenge for Greece," Economies, MDPI, vol. 11(2), pages 1-27, January.
    5. Eva Kaslik & Mihaela Neamţu & Loredana Flavia Vesa, 2021. "Global Stability Analysis of a Five-Dimensional Unemployment Model with Distributed Delay," Mathematics, MDPI, vol. 9(23), pages 1-15, November.
    6. Njike-Tchaptchet, Eric Rostand & Tadmon, Calvin, 2023. "Mathematical modeling of the unemployment problem in a context of financial crisis," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 211(C), pages 241-262.
    7. Kaslik, Eva & Neamţu, Mihaela & Vesa, Loredana Flavia, 2021. "Global stability analysis of an unemployment model with distributed delay," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 185(C), pages 535-546.

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