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Rule-Based Modeling of Labor Market Dynamics

23 Pages Posted: 28 Aug 2010 Last revised: 13 May 2011

Clemens Kühn

Humboldt University of Berlin - Faculty of Mathematics and Natural Sciences

Katja Hillmann

University of Hamburg

Date Written: August 27, 2010

Abstract

The dynamics of unemployment and its response to measures taken to counter rising unemployment are not fully understood today. Their formal description often assumes homogeneity among individual agents in the labor market. Agent based frameworks allow for the faithful description of heterogenous systems and are thus well suited for a more detailed description of labor market dynamics. Here, we introduce rule-based modeling as a novel approach of agent-based modeling with regard to the description of labor market dynamics. We demonstrate that the main advantages of rule-based modeling, such as the implicit enumeration of the state space, can be efficiently exploited in the description of socio-economic interactions.

Keywords: Computational Economics, Rule-Based Modeling, Labor Market Dynamics

JEL Classification: C63, J01, J63

Suggested Citation

Kühn, Clemens and Hillmann, Katja, Rule-Based Modeling of Labor Market Dynamics (August 27, 2010). Available at SSRN: https://ssrn.com/abstract=1666891 or http://dx.doi.org/10.2139/ssrn.1666891

Clemens Kühn

Humboldt University of Berlin - Faculty of Mathematics and Natural Sciences ( email )

Berlin
Germany

Katja Hillmann (Contact Author)

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

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