Assuming a Markov chain model for the labour market flow, we study it in its equilibrium state, We compare the observed and the theoretical unemployment rates. It is found that the observed unemployment rate approximates very closely the theoretical one. The mean and variance of the observed unemployment rate are computed. It is shown that its asymptotic distribution is normal.
|Number of pages||6|
|Journal||Australian Journal of Statistics|
|Publication status||Published - 1 Jan 1988|