Statistical Mechanics of Labor Markets

He Chen and Jun-ichi Inoue

Papers from arXiv.org

Abstract: We introduce a probabilistic model of labor markets for university graduates, in particular, in Japan. To make a model of the market efficiently, we take into account several hypotheses. Namely, each company fixes the (business year independent) number of opening positions for newcomers. The ability of gathering newcomers depends on the result of job matching process in past business years. This fact means that the ability of the company is weaken if the company did not make their quota or the company gathered applicants too much over the quota. All university graduates who are looking for their jobs can access the public information about the ranking of companies. Assuming the above essential key points, we construct the local energy function of each company and describe the probability that an arbitrary company gets students at each business year by a Boltzmann-Gibbs distribution. We evaluate the relevant physical quantities such as the employment rate. We find that the system undergoes a sort of `phase transition' from the `good employment phase' to `poor employment phase' when one controls the degree of importance for the ranking.

Date: 2013-09
New Economics Papers: this item is included in nep-lam, nep-ltv and nep-neu
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Citations: View citations in EconPapers (3)

Published in Econophysics of systemic risk and network dynamics, New Economic Windows 2013, Springer-Verlag (Italy, Milan), pp. 157-171 (2012)

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1309.5156

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