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Vacancy Size and Offered Wage: A Source of Search Friction in The Japanese Labor Market

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  • Ryo Kambayashi
  • Yuko Ueno
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    Abstract

    Behind rising natural rate of unemployment, they often point out the decline in matching efficiency of the labor market. We empirically examine the cause of matching friction based on the theory of directed search model such as Burdett, Shi and Wright (2001). From rich micro data on vacancy size and wage variation of job changers in Japanese labor market, we observe the negative relationship between vacancy size and offered wage, which show the existence of search friction, not in the whole labor market but in some particular unskilled markets, especially those of clerks and production workers.

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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-179.pdf
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    Bibliographic Info

    Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d06-179.

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    Date of creation: Aug 2006
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    Handle: RePEc:hst:hstdps:d06-179

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    Keywords: Search friction; matching; directed search; vacancy; wage offer; Japan;

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