IDEAS home Printed from https://ideas.repec.org/a/kap/compec/v51y2018i3d10.1007_s10614-016-9610-3.html
   My bibliography  Save this article

A Dynamic Model of Unemployment with Migration and Delayed Policy Intervention

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10614-016-9610-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10614-016-9610-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. O. Damette & V. Fromentin, 2013. "Migration and labour markets in OECD countries: a panel cointegration approach," Applied Economics, Taylor & Francis Journals, vol. 45(16), pages 2295-2304, June.
    2. Tim Hatton, 2013. "The Slump and Immigration Policy in Europe," CEPR Discussion Papers 686, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    3. DavidG. Blanchflower & Chris Shadforth, 2009. "Fear, Unemployment and Migration," Economic Journal, Royal Economic Society, vol. 119(535), pages 136-182, February.
    4. Christopher A. Pissarides, 2011. "Equilibrium in the Labor Market with Search Frictions," American Economic Review, American Economic Association, vol. 101(4), pages 1092-1105, June.
    5. Carmen Camacho, 2013. "Migration modelling in the New Economic Geography," Post-Print hal-00973381, HAL.
    6. Christian Dustmann & Tommaso Frattini, 2014. "The Fiscal Effects of Immigration to the UK," Economic Journal, Royal Economic Society, vol. 124(580), pages 593-643, November.
    7. Joshua D. Angrist & Adriana D. Kugler, 2003. "Protective or counter-productive? labour market institutions and the effect of immigration on eu natives," Economic Journal, Royal Economic Society, vol. 113(488), pages 302-331, June.
    8. Jean, Sébastien & Jiménez, Miguel, 2011. "The unemployment impact of immigration in OECD countries," European Journal of Political Economy, Elsevier, vol. 27(2), pages 241-256, June.
    9. Heid, Benedikt & Larch, Mario, 2012. "Migration, trade and unemployment," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 6, pages 1-40.
    10. Camacho, Carmen, 2013. "Migration modelling in the New Economic Geography," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 233-244.
    11. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute of Labor Economics (IZA).
    12. Giovanni Facchini & Anna Maria Mayda, 2008. "From individual attitudes towards migrants to migration policy outcomes: Theory and evidence [‘Immigration policy, assimilation of immigrants and natives’ sentiments towards immigrants: Evidence fr," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(56), pages 652-713.
    13. Huang, Weihong, 2008. "Information lag and dynamic stability," Journal of Mathematical Economics, Elsevier, vol. 44(5-6), pages 513-529, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julia Calatayud & Juan Carlos Cortés & Marc Jornet & Francisco Rodríguez, 2020. "Mean Square Convergent Non-Standard Numerical Schemes for Linear Random Differential Equations with Delay," Mathematics, MDPI, vol. 8(9), pages 1-17, August.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries," LABOUR, CEIS, vol. 27(4), pages 399-420, December.
    2. Vincent Fromentin, 2012. "Migration and unemployment duration in OECD countries: A dynamic panel analysis," Economics Bulletin, AccessEcon, vol. 32(2), pages 1113-1124.
    3. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2015. "The EEAG Report on the European Economy 2015: Blurring the Borders," EEAG Report on the European Economy, CESifo, vol. 0, pages 1-108, February.
    4. Peter Huber & Gabriele Tondl, 2012. "Migration and regional convergence in the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 439-460, November.
    5. Adam Levai & Riccardo Turati, 2021. "The Impact of Immigration on Workers’ Protection," LIDAM Discussion Papers IRES 2021021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 07 Sep 2021.
    6. Mihaela Simionescu & Yuriy Bilan & Grzegorz Mentel, 2017. "Economic Effects of Migration from Poland to the UK," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 757-757, August.
    7. Junko Doi & Laixun Zhao, 2012. "Immigration Conflicts," Discussion Paper Series DP2012-29, Research Institute for Economics & Business Administration, Kobe University, revised Dec 2012.
    8. Syarifuddin, Ferry, 2020. "An Optimal Islamic Investment Decision in Two-region Economy: The Case of Indonesia and Malaysia," MPRA Paper 104809, University Library of Munich, Germany.
    9. d’Albis, Hippolyte & Boubtane, Ekrame & Coulibaly, Dramane, 2019. "Immigration and public finances in OECD countries," Journal of Economic Dynamics and Control, Elsevier, vol. 99(C), pages 116-151.
    10. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2015. "Chapter 4:Migration in the European Union: Too much of a goodthing?," EEAG Report on the European Economy, CESifo, vol. 0, pages 78-96, February.
    11. Boubtane, Ekrame & Coulibaly, Dramane & Rault, Christophe, 2013. "Immigration, unemployment and GDP in the host country: Bootstrap panel Granger causality analysis on OECD countries," Economic Modelling, Elsevier, vol. 33(C), pages 261-269.
    12. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr, 2018. "The Effects of Immigration in Developed Countries: Insights from Recent Economic Research," CEPII Policy Brief 2018-22, CEPII research center.
    13. Anthony Edo & Lionel Ragot & Hillel Rapoport & Sulin Sardoschau & Andreas Steinmayr & Arthur Sweetman, 2020. "An introduction to the economics of immigration in OECD countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1365-1403, November.
    14. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    15. Abderraouf Mtiraoui, 2024. "Interaction between Migration and Economic Growth through Unemployment in the Context of Political Instability in the MENA Region," International Journal of Economics and Financial Issues, Econjournals, vol. 14(1), pages 204-215, January.
    16. Aubry, Amandine & Burzyński, Michał & Docquier, Frédéric, 2016. "The welfare impact of global migration in OECD countries," Journal of International Economics, Elsevier, vol. 101(C), pages 1-21.
    17. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    18. Martin Kahanec & Mariola Pytliková, 2017. "The economic impact of east–west migration on the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 407-434, August.
    19. Lena Calahorrano & Oliver Lorz, 2011. "Aging, Factor Returns, and Immigration Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(5), pages 589-606, November.
    20. Michele Battisti & Gabriel Felbermayr & Panu Poutvaara, 2015. "Einwanderung: Welchen Nutzen hat die einheimische Bevölkerung?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(18), September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:51:y:2018:i:3:d:10.1007_s10614-016-9610-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.