A simple mathematical model for unemployment: a case study in Portugal with optimal control

Abstract

We propose a simple mathematical model for unemployment. Despite its simpleness, we claim that the model is more realistic and useful than recent models available in the literature. A case study with real data from Portugal supports our claim. An optimal control problem is formulated and solved, which provides some non-trivial and interesting conclusions.

This is a preprint of a paper whose final and definite form will appear in 'Statistics, Optimization and Information Computing' (see [http://www.IAPress.org]). Submitted 27-Oct-2017; revised 19-Dec-2017; accepted 29-Dec-2017