In this paper, the Markov decision process with multi-objective Q-learning algorithm is proposed for setting minimum wage. The policy objectives are maximizing economic growth and income equality, and minimizing unemployment. The indicators based on ILO 131 are selected to support these...

This paper develops a life-cycle approach to equilibrium unemployment. Workers only differ respectively to their distance from deterministic retirement. A non age-directed search equilibrium is then typically featured by increasing (decreasing) firing (hiring) rates with age and a hump-shaped...