Analysis In Stochastic Search And Unemployment Models

In this paper,we mainly analyses the condition of labor market,and we get some models on this market to get a series of conclusion about salary of employees. It introduces the development of employment theory and the analysis.According to it,we analyse the one-sided-search,including workers and firms.Then I social assistance is considered. In the search theory,it is believed that it is not easy that the workers search job and the firms recruit workers.They must spend time searching vacancies or workers,respectively.When the behaviors of the workers and firms are studied,their meetings are considered stochastic process and simulsted by Poisson process.Using stochastic control,the optimal returns and other relations,some phenomena are explained on the labor market. In each period,the worker applies to a job opening and is subsequently offered a wage,say w .The worker decides whether to accept the wage offer and stop searching,or reject the offer and continue to search.In this report,the workers reservation on wage are obtained,and the impacts of parameters on the reservation wage are carefully discussed. To induce more workers of great ability to apply to the job,the firm attempts to pay more than the"going wage",each worker is in one of three states point in time:grest ability employed,low ability employed or unemployed.According to analysis,we obtain the optimal wage and the level of employment. We also get a model of social assistance in shirking models,if differential benefits for shirkers and non-shirkers exist,it will induce workers not to shirk,and higher social assistance for non-shirkers will reduce unemployment.The purpose of this paper is to get the relationship for some salary to employment and salary.According to this analysis,we can get some suggestion on economic policy.