THE UNEMPLOYMENT RATE WHEN THE LABOUR MARKET IS MODELLED BY A MARKOV CHAIN

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Abstract

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.

Original languageEnglish
Pages (from-to)183-188
Number of pages6
JournalAustralian Journal of Statistics
Volume30
Issue number2
DOIs
Publication statusPublished - 1 Jan 1988

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