A multilevel index model of labor market dysfunction

Abstract

Index modeling is useful for evaluation of complex objects such as social institute of labor market. This institute associates different levels of the society: demographic, professional, financial and other. Formal approach to the labor market functioning assessment can be done through the calculating of system of indexes - index of possibilities, index of demanded competencies, index of intentions, and final cumulative index of labor market dysfunction. Using of the cumulative index we can outline the indicators of labor market stability and its dynamics in different regions of the country. Index calculation let us to classify three possible conditions of the labor market: normal functioning, functioning with compensation and crisis functioning. Finally, an original program application for the supporting of the indexes calculation was done.