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6.1 Mathematical model for simulating the labor market

Wage system:

(18)   Ldj2,j3 = Pj2,j3 × Ldsj3

In this way, the principles of "equal pay for equal work" and "everyone according to one's performance" are implemented within one profession.

(19)   lsj3 def= Lsj3 × Mdj3 × Mt / Mp

(20)   ldj2,j3 def= Ldj2,j3 × Mt / Mp

(21)   lj2,j3 = fbj3 × ldj2,j3 = fbj3 × pj2,j3 × lsj3

Them2 ×m3 individual wages lj2,j3 are combined to form the matrix l.

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 lmaxj2 on the basis of the current piece wages ls, the assessment of one's individual abilities pj2 and the employment situation in the professions. The worker is motivated to change profession depending on where one earns the most.


Wage adjustment:

(22)   lsj3,i4+1 = lsj3,i4 ×[1-r2 ×(1-fbj3)]

The factor r2 is a parameter of the speed of wage adjustment. Its size must be identified empirically.

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.

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