Education as a signal of ability2

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Default-person Will Kim (Author)

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Click to Run Model

breed [ workers worker ]
breed [ firms firm ]

globals [
  tiers
]

workers-own [
  offer ;; the greatest amount of money the worker has been offered
  pemployer ;; the potential employer of the worker
;  employed?
  ability
  salary
  education
  utility
  employer
  ecost
]

firms-own [
  y-star ;; the beliefs of the firm
  hwage ;; the wage for the high ability workers
  lwage ;; the wage for the low ability workers
  sales ;; yearly sales the firm raises per tier
  cost ;; cost of operating per tier
  wage-schedule ;; wage schedule
]

to setup
  ca ;; clear all
  set-default-shape firms "circle"
  set-default-shape workers "person"
  setup-workers ;; worker setup procedure
  setup-firms ;; firm setup procedure
end 

to setup-workers
  create-workers number-of-workers[
    setxy random-xcor random-ycor
    set ability (random types) + 1
    repeat [who] of self [get-education] ;; education from 0~9 for each turtle
    set pemployer nobody
  ]
end 

to setup-firms
  create-firms number-of-firms [
    set size 2
    setxy random-xcor random-ycor
;    set sales (list 0)
;    set cost (list 0)
    decide-beliefs
    setup-wage-schedule
  ]
end 

to setup-wage-schedule
  set wage-schedule n-values types [random-float 1]
end 

to decide-beliefs  ;; firm procedure
  set y-star random 3 ;; firm believes that people with education above 1.5 will be high ability
  set hwage 3
  set lwage 1
end 

;; From here the go procedure
;;  First, workers start with their initial values of education. Then, firms go and 
;;  make offers to workers. Next, workers accetp the highest offer. Now, workers and firms 
;;  calculate their utilities.

to go
;  ask firms 
;  [ offer-work ]
  ask workers 
  [ accept-offer ]
  calculate-utility
;  ask workers get-education
end 

to get-education
  set education education + 1
  set ecost education ^ 2 / ability
end 

to calculate-utility
  ask firms [
    set sales sum [ability] of workers with [employer = myself]
    set cost sum [salary] of workers with [employer = myself]
  ]
  ask workers [
    set utility salary - ecost
  ]
end 

to update-tiers ;; need to check if this works!!
  let emin min [education] of workers
  let emax max [education] of workers
  let tier-length (emax - emin) / types
  let counter emin
  let temp1 [who] of workers with [[education] of self >= counter and [education] of self <= (counter + tier-length)]
  set counter counter + tier-length
  let temp2 [who] of workers with [[education] of self > counter and [education] of self <= (counter + tier-length)]
  set tiers list temp1 temp2
  repeat types - 2 [
    set counter counter + tier-length
    set tiers lput [who] of workers with [[education] of self > counter and [education] of self <= (counter + tier-length)] tiers
  ]
end 

to offer-wage ;; firm procedure
  foreach n-values types [?] ;; for 1, 2, 3, ..., types. This is just a counting variable
  [
    let num ? ;; set the num counting variable to the current number
    let w item num [wage-schedule] of self ;; wage-schedule = [w1 w2 w3]. num denotes current w.
    let T item num tiers ;; tiers = [T1 T2 T3]. num denotes current T
    foreach T [ ;; for T1, T2, ...
      ask worker ? [
        let temp w * [education] of self ;; offer wage of  education * wage schedule
        if [offer] of self <= temp
        [ set offer temp 
          set pemployer myself ]]
  ]]
end 

to accept-offer 
    set salary offer
    set employer pemployer
;    set employed? true
    set pemployer nobody
    set offer 0
end 

to observe-performance ;; firm procedure
  set cost (list 0)
  set sales (list 0)
  foreach n-values types [?] [ ;; for each tier
    let num ? ;; current tier
    let temp workers with [employer = myself and member? [who] of self item num tiers]
    set cost lput sum [salary] of temp cost
    set sales lput sum [ability] of temp sales
  ]
  set cost remove-item 0 cost
  set cost remove-item 0 sales
end 

There is only one version of this model, created almost 13 years ago by Will Kim.

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