Question: please solve this problem 2. Suppose a country has 100 million inhabitants. The population can be divided into the employed, the unemployed, and the persons
please solve this problem

2. Suppose a country has 100 million inhabitants. The population can be divided into the employed, the unemployed, and the persons who are out of the labor force (OLF). In any given year, the transition probabilities among the various categories are given by: Moving Into: mmm- Moving Unemployed From: These transition probabilities are interpreted as follows. In any given year, 6 percent of the workers who are employed become unemployed; 15 percent of the workers who are unemployed nd jobs, and so on. What will be the steady-state unemployment rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
