December 5, 2007 17:33 WSPC - Proceedings Trim Size: 9in x 6in CIEF-17 1 Introducing a new job contract into the Labor Market: An agent-based computational approach Zach Lewkovicz and Jean-Daniel Kant Computer Science Laboratory (LIP6), Universit´ e Paris 6 & CNRS, Paris 75016, France E-mail: zach.lewkovicz@lip6.fr, jean-daniel.kant@lip6.fr We propose to implement and simulate an economic model that studies the potential effects of the introduction of a new type of a job contract into the French labor market. This transition from a classical economic model to an agent-based simulation allows us to reproduce the same tendencies found in the former one and to observe a new dimension that emerges from the agent-based simulation: an increase of oscillations for the characteristic rates revealing an increase of precariousness (job instability) due to the new type of contract. Keywords : Agent-Based Computational Model, Labor Market, Multi-Agent System, Simulation. 1. Introduction In this paper, we aim to build a computational economic model that imi- tates the conditions of the French labor market in order to study the pos- sible changes in the market, due to the introduction of a new type of a job contract. We intend to take judicious advantage of the tools provided by multi-agent systems (MAS), i.e. systems made of artificial agents that are autonomous and in strong interaction with each other, 1 in order to translate an economic model to an agent-based one. The economic model is mainly described by differential equations, whereas in a multi-agent model each agent is an independent entity, constantly interacting with other agents and the environment. This transposition was elaborated in two phases. We started by identifying the main actors in the model. Each actor has his/her own main role, and his/her own behaviors (methods). These behaviors in- troduce the dynamics to the simulation. We have afterwards integrated the calculation mechanisms of the economic model, which take part in the decision processes of the agents.