Modeling the process of establishing equilibrium on the labor market

Oleksii Vasyliev
Additional contact information
Oleksii Vasyliev: Taras Shevchenko National University of Kyiv

Economic Synergy, 2025, issue 3, 36-45

Abstract: The article is devoted to studying the process of establishing equilibrium in the labor market. For this purpose, a synergistic model is proposed that describes the redistribution process between the employed and the unemployed agents of the system. The model is based on a nonlinear first-order differential equation that relates the change in the number of employed agents to the current number of employed and unemployed agents. The equation also includes parameters that describe the probabilities of transitions between different states of the system. Situations are considered when the probabilities of transitions are constant (do not change when the state of the system changes), and when they depend linearly on the number of employed and unemployed agents. In all of the above cases, the question of the dynamics of the system and the possibility of its transition to a stationary state (an equilibrium state) is studied. The paper shows that both in the case of constant transition probabilities and under the condition that these probabilities depend on the number of employed and unemployed, the system has a stable stationary state, to which it transitions regardless of the initial conditions. To demonstrate the stability of the system, the dependence of transition probabilities on the number of employed and unemployed agents is considered, and based on the resulting nonlinear differential equation, a stationary solution is obtained, after which this solution is analyzed for stability. Exact (analytical) solutions are found for the corresponding differential equation, and the stability of the stationary state is proven. The results of the study can be useful in studying the processes of establishing equilibrium in the labor market and in analyzing the stability of the corresponding systems.

Keywords: self-organization; synergy; economic model; employment; unemployment; stationary state (search for similar items in EconPapers)
JEL-codes: C02 C60 J20 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://es.istu.edu.ua/EconomicSynergy/article/view/297/215 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2025:i:3:p:36-45

DOI: 10.53920/ES-2025-3-3

Access Statistics for this article

More articles in Economic Synergy from Higher Educational Institution Academician Yuriy Bugay International Scientific & Technical University
Bibliographic data for series maintained by Anna Duchenko ().