Wage system:

• A piece wage Ls_j3 is determined for each profession j3.
• If a worker of any performance group j2 in the profession j3 provides a work performance corresponding to its individual productivity P_j2,j3, then one receives the individual performance wage Ld_j2,j3 with

(18)   Ld_j2,j3 = P_j2,j3 × Lds_j3

• With the respective normal Md_j3 for work performance in profession j3, the normal Mp for prices (e.g. Mp=1000 DM) and the normal Mt for time (e.g. Mt=1 day), the dimensionless piece wage ls_j3 and the dimensionless individual performance wage ld_j2,j3 can be introduced.

(19)   ls_{j3 def}= Ls_j3 × Md_j3 × Mt / Mp

(20)   ld_{j2,j3 def}= Ld_j2,j3 × Mt / Mp

• If the optimal employment structure has not yet been achieved, there is an apparent oversupply of labor in some professions. The extent of the apparent oversupply is given by the factors fb_j3 of the needs-conformity of the work performance in the respective professions. If one assumes that there is shortened work in the respective professions without wage compensation, then the actual individual wage l_j2,j3 for the worker in productivity group j2 in profession j3 is given by

(21)   l_j2,j3 = fb_j3 × ld_j2,j3 = fb_j3 × p_j2,j3 × ls_j3

This wage system is the driving force for adapting the employment structure. Every worker can assess in which occupation every person has the best earnings lmax_j2 on the basis of the current piece wages ls, the assessment of one's individual abilities p_j2 and the employment situation in the professions. The worker is motivated to change profession depending on where one earns the most.

Fluctuations:

• Within a certain period of time (e.g. during a reproduction cycle i4), the r1th share of all workers switch to the professions in which they currently would earn the most based on the current piece wages, their individual skills and the employment situation - if they are not already employed in this profession. The factor r1 is called the fluctuation rate. Its size must be determined empirically.

• "Between each fluctuation period (reproduction cycle), the piece wages are expressed by the factors fb_j3 in accordance with the employment situation and corrected using the following formula

(22)   ls_j3,i4+1 = ls_j3,i4 ×[1-r2 ×(1-fb_j3)]

• With every wage correction, the wage level is also brought back to the average value of one.

The fluctuations of workers can now be simulated over any number of reproduction cycles.

Hereby this simple model of a labor market is already described completely. For the computational simulation of the labor market according to this model, a TurboPascal program was written so that our demonstration example can be used to test whether the employment structure is self-optimizing and which optimal wage system occurs.