The Model of the Human Capital Dynamics and Population Behavior in the Labor Market

• Published in: Lobachevskii journal of mathematics Vol. 46; no. 1; pp. 326 - 340
• Main Authors: Shananin, A. A., Trusov, N. V.
• Format: Journal Article
• Language: English
• Published: Moscow Pleiades Publishing 01.01.2025; Springer Nature B.V
• Subjects: Algebra; Analysis; Boundary conditions; Density distribution; Differential equations; Fokker-Planck equation; Geometry; Labor; Mathematical Logic and Foundations; Mathematical models; Mathematics; Mathematics and Statistics; Optimal control; Probability Theory and Stochastic Processes; identification problem; optimal control; 2010 Mathematics Subject Classification: 37A50, 49N45; infinite time horizon; Kolmogorov–Fokker–Planck equation; Lévy process

We describe the mathematical model of a rational representative employee in the labor market. The employee distributes his salary between consumption and investments in his competencies. The salary is described by a stochastic differential equation depending on the employee’s competence. The model i...