Comparison of Optimal Control Solutions in a Labor Market Model

In this paper a variety of computational optimal control techniques are compared on a complicated nonlinear discrete-time model. We use a labor market model with the objective of trying to obtain an unemployment rate objective, using an active labor market program as a control. In reality the control is constrained as only limited proportion of the unemployment can attend the labor market program. A variety of computational optimal control techniques are applied. The techniques include numerically linearizing the model and using standard linear quadratic optimal control and applying this to the nonlinear model; model based predictive control; and stacking the model over time and using optimisation techniquesLabour market policies; Optimal Control.

Scarring, Habituation and Social Exclusion: Work Histories in Secure and Insecure Employment

This paper analyses the impact of unemployment experiences on the life satisfaction of Australian workers in casual and permanent employment. Using panel data techniques, it was found that male permanent workers were scarred by previous unemployment. This contrasted with casual workers who seem habituated to the e¤ects of past unemployment. Social norming e¤ects were evident for permanent workers, unemployment scarred deeper when it was less of a general norm, this was not the case for casual workers. Social psychology research suggests that disadvantaged groups tend to prefer intragroup or intertemporal comparisons. Casual workers. habituation to past unemployment and lack of social norming could contribute to the process of social exclusion.

Scarring, Habituation and Job Flexibility: Work histories in Secure and Insecure Employment

Increases in the use of fexible employment contracts create more frequent transitions between unemployment and employment. This paper analyses the impact of cumulative unemployment experiences on the life satisfaction of Australian male workers in flexible employment. Using panel data techniques, it was found that permanent contract workers were scarred by previous unemployment. This contrasted with flexible contract workers who seem habituated to the effects of past unemployment. Social norming effects were evident for permanent workers, unemployment scarred deeper when it was less of a general norm, this was not the case for casual workers. Flexible contract workers.habituation to past unemployment and lack of social norming could contribute to the process of social exclusion

The magnitude of educational disadvantage amongst indigenous minority groups in Australia.

Indigenous groups are amongst the most disadvantaged minority groups in the developed world. This paper examines the educational disadvantage of indigenous Australians by assessing academic performance at a relatively early age. We find that, by the age of 10, indigenous Australians are substantially behind non-indigenous Australians in academic achievement. Their relative performance deteriorates further over the next 2 years. School and locality do not appear to be important determinants of the indigenous to non-indigenous achievement gap. However, geographic remoteness, indigenous ethnicity and language use at home have a marked influence on educational achievement. A current focus of Australian indigenous policy is to increase school resources. Our results suggest that this will not eliminate indigenous educational disadvantage on its own

Scarring, habituation and social exclusion: work histories in secure and insecure employment

Increases in the use of .exible employment contracts create more frequent transitions between unemployment and employment. This paper analyses the impact of cumulative unemployment experiences on the life satisfaction of Australian male workers in .exible employment. Using panel data techniques, it was found that permanent contract workers were scarred by previous unemployment. This contrasted with .exible contract workers who seem habituated to the e¤ects of past unemployment. Social norming e¤ects were evident for permanent workers, unemployment scarred deeper when it was less of a general norm, this was not the case for casual workers. Flexible contract workers.habituation to past unemployment and lack of social norming could contribute to the process of social exclusion

Economic and environmental impacts of pollution control in a system of environment and economic interdependence

The importance of the rate of change of the pollution stock in determining the damage to the environment has been an issue of increasing concern in the literature. This paper uses a three-sector (economy, population and environment), non-linear, discrete time, calibrated model to examine pollution control. The model explicitly links economic growth to the health of the environment. The stock of natural resources is affected by the rate of pollution flows, through their impact on the regenerative capacity of the natural resource stock. This can shed useful insights into pollution control strategies, particularly in developing countries where environmental resources are crucial for production in many sectors of the economy. Simulation exercises suggested that, under plausible assumptions, it is possible to reverse undesirable transient dynamics through pollution control expenditure, but this is dependent upon the strategies used for control. The best strategy is to spend money fostering the development of production technologies that reduce pollution rather than spending money dealing with the effects of the pollution flow into the environment

YOUTH UNEMPLOYMENT OUTFLOW RATES AND LABOR MARKET PROGRAMS: AUSTRALIAN EVIDENCE

A matching function methodology is used to investigate the macroeconomic effects of labor market program (LMP) commencements on youth unemployment outflows in Australia using unpublished data that classify commencements and outflows by duration of unemployment. The results indicate that LMPs have had significant effects on outflows from short-term unemployment. There is a net positive effect from LMP commencements on short-term unemployed female outflow rates. However, females experienced negative spillover effects from male LMP commencements. These spillover effects appear to be associated with wage subsidy programs and suggest the net impact of such programs may have been overstated in previous studies. Copyright 2002 Western Economic Association International.