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Modeling Unemployment Dynamics in Ghana: Comparative Results of Caputo and Atangana-Baleanu Caputo Fractional Derivatives |
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PP: 461-488 |
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doi:10.18576/pfda/120214
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Author(s) |
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Joseph Acquah,
Alex Emmanuel Nti,
Isaac Ampofi,
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Abstract |
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| In this study, we investigate unemployment dynamics which is a serious macroeconomic problem faced by all economies. For many decades, Ghana has experienced unemployment problems due to population growth, skill mismatch, etc. This research presents two fractional derivative-based unemployment models in Ghana. However, this work adopted an existing unemployment model for Ghana in the Caputo fractional derivative sense and developed it in the Atangana-Baleanu Caputo fractional sense to compare the superiority of the two models. The next generation matrix was used to obtain the unemployment-free equilibrium. The model had two fixed points. The existence and uniqueness of the ABC model were determined and proven to exist and unique. The generalized Adams‒Bashford numerical method was used to develop a numerical scheme to simulate the ABC model, whereas an existing numerical scheme built on the Adams‒Bashforth‒Molton Predictor Corrector scheme was used to simulate the Caputo model. The results show that unemployment in Ghana can be controlled if policymakers invest in skill training with the necessary logistics, and further provide startup capital. The study further showed that government should create 3% vacancies in the public sector, and cut down taxes for various private institutions and individuals. Finally, the comparative results of the models show that the Atangana Baleanu Caputo model is superior to the Caputo model in terms of real-life applicability. This makes the application of the ABC in studying and controlling unemployment dynamics very suitable in Ghana’s labor market. |
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