This agent-based model explores how work-from-home preferences affect labour market matching between workers and firms. The model represents a simplified labour market in which firms advertise vacancies and workers decide whether to apply for and accept jobs based on wages, work-from-home arrangements, experience, employment status, and their own expectations.

The model focuses on the interaction between firms and workers as a bargaining-like process. Firms do not simply offer a fixed job contract. Instead, they adapt their recruitment strategies over time by adjusting wage offers and work-from-home arrangements according to whether they succeed or fail in hiring workers. Workers also adapt their behaviour. They evaluate job offers by comparing the wage and work-from-home conditions offered by firms with their own preferences and current employment situation. Employed workers are more selective, while unemployed workers may gradually reduce their expectations when they fail to receive suitable offers.

The purpose of the model is to examine how individual decisions can generate wider labour market outcomes. In particular, the model can be used to study unemployment, unfilled vacancies, recruitment difficulties, wage adjustment, worker utility, and the emergence of preferred work-from-home strategies. It also allows comparison between firms of different sizes, since micro, small, medium, and large firms may not face the same constraints when trying to attract workers.

The model is not intended to predict a real labour market directly. Rather, it is an exploratory simulation designed to examine the mechanisms through which work-from-home preferences, wage expectations, firm strategy, and worker adaptation interact over repeated hiring cycles. The model is especially useful for analysing how decentralised decisions by workers and firms can produce aggregate patterns that are not obvious from the behaviour of any single agent.

The main outputs of the model include unemployment rates, firm hiring success, unfilled vacancies, wage multiplier evolution, work-from-home strategy adoption, worker utility, and differences in outcomes by firm size and worker experience. These outputs can be used to compare alternative labour market scenarios and to examine how the presence of work-from-home preferences changes the matching process between firms and workers.