How it Works
This is a search-and-matching labor market model (Diamond–Mortensen–Pissarides style), applied to the quantum-technology job market: unemployed physicists and quantum engineers (U) search for open roles at quantum-computing, quantum-sensing and quantum-communications firms (V). The two pools meet through a real Cobb-Douglas matching function:
Job separations feed workers into unemployment at rate s; successful matches drain both U and V simultaneously. Vacancy creation feeds new openings into V at rate c, likewise drained by matches. Raising the training investment A slider means quantum-skilled workers are matched to relevant vacancies faster for the same U and V — this pulls the whole steady-state relationship between U and V inward toward the origin, a real and empirically documented effect of improved labor-market matching efficiency. Small cyclical wobbles in s and c (representing quantum-industry hiring cycles) keep the (U, V) point moving, tracing out the downward-sloping Beveridge curve rather than sitting at a single dot.
Frequently Asked Questions
What is the Beveridge curve?
The Beveridge curve is the empirically observed downward-sloping relationship between the unemployment rate and the job vacancy rate: when the labor market is slack, unemployment is high and vacancies are scarce; when it is tight, unemployment is low and vacancies are plentiful. It is a real, widely used diagnostic in labor economics, not a theoretical curiosity.
What is the matching function?
The matching function M = A × U^α × V^(1-α) is a Cobb-Douglas style function (Diamond-Mortensen-Pissarides / DMP model) that converts a stock of unemployed workers U and open vacancies V into a flow of new hires M each period. A is matching efficiency, α is the elasticity of matching with respect to unemployment.
Why does quantum-skills training shift the curve?
Training raises matching efficiency A: better-prepared quantum engineers and physicists are recognized and hired faster for the same pool of unemployed workers and open vacancies. A higher A means more hires per period at any given U and V, which pulls the steady-state Beveridge curve inward toward the origin — fewer unemployed workers and fewer unfilled vacancies sit around simultaneously.
Why does the curve trace out a loop instead of a single point?
Job separations s and vacancy creation c oscillate slightly to represent business-cycle-like fluctuations in the quantum-tech sector. Because unemployment and vacancies adjust with some inertia rather than jumping instantly to a new steady state, the (U, V) path traces a loop around the underlying curve rather than sitting still — the same pattern seen in real labor-market data.
What do s and c represent?
s is the job separation (layoff) rate: the fraction of employed workers who lose or leave their job each period, feeding into unemployment. c is vacancy-creation intensity: how aggressively firms open new quantum-tech positions, feeding into the vacancy rate. Both are drained by successful matches M.