Monday, November 6, 2017

Working on my labor market model

My 'basket brigade' version of labor was the exception that proves the rule.  Labor queues are not indexable as two matched queues. Hence no pricing surface, hence  no auto trading. I assigned the task to the smart contracts layer.

Labor transactions involve complex interview processes in which inside information is transacted, but not revealed.  That information is priced by hiring managers, who cover the transaction costs of search. Can we make a three color queue?

In the improved model,  employers and employees pay a hiring manager fee, priced by supply and demand.   Thus, hiring managers are enticed to maintain the labor markets through the cycle, the market structure itself will be sound.  Employees and employers go on more active searches when fees are low. The hiring fees keep the market.

So, we see new companies moving the labor markets to digital.  They want to sell hiring tokens, the median price to have one transaction arranged between hired and hiring. They are like labor insurance for both sides, and encourage the hiring managers to continue pricing inside labor information.

Labor tokens are then indexable, we have farmed out the process of managing actual labor volatility. In  idle times, these new companies are racing to get hiring transactions back up.

Why not standard employment insurance?  Same thing, i he sandbox lab or search tokens are tradable. The only modification here is that intelligent human labor bakers are needed because labor is a three color affair.

Consider Manpower, an old time short time labor service.  If these companies honored a tradable, token contract, guaranteeing their services, in an open market, then local governments could just buy a few, tokens competitively, buying two or three hundred future job interviews.  Pass them out to the indigent, as needed.  In the open market, everyone observes what they get.  Farmers around here can use the tokens to hedge future labor needs. 

Automating works much better when all parties have their secure element. Thus, a youg kids can just tp on the icon, and get interview real quick for a five hour job paying cash doing a lawn.  Transactions costs become low, but we need the smart contract to manage the two queues and sell its services in a third queue.  We still have to do 'if then'' statements in the smart layer.

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