An optimal control approach to public investments for unemployment reduction

The paper deals with the modelling and the control of a job market dynamics which considers unemployed individuals and two classes of jobs: a temporary one, characterised by a lower quality of economical treatment and/or long duration assurance for the workers, and a regular one, more stable and economically more satisfactory. For each of the two classes, the active workers as well as the vacancies are considered. Control actions are introduced, representing different government efforts devoted to the quantity and the quality improvements of the work. Choices in the model are discussed and compared with literature. The numerical results of some simulations are reported to better put in evidence the results obtained.