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Is Labor Market Mismatch a Big Deal in Japan?

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  • Ippei Shibata
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    Abstract

    Despite its low unemployment rate, the recent shift in the Japanese Beveridge curve indicates increased labor mismatch. This paper quantifies the age, employment-type (full or part-time), and occupational mismatch in the Japanese labor market following Sahin and others (2013). Between April 2000 and April 2013, the age mismatch has steadily declined while the occupational and employmenttype mismatch has shown a countercyclical pattern, showing a sharp increase during the global financial crisis. Occupational mismatch accounted for approximtely 20-40 percent of the recent rise in the unemployment rate in Japan. The magnitude was comparable to that of the U.K. and the U.S.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 13/196.

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    Length: 26
    Date of creation: 17 Sep 2013
    Date of revision:
    Handle: RePEc:imf:imfwpa:13/196

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    Related research

    Keywords: Labor markets; Japan; Unemployment; mismatch; vacancies; Japanese labor market; unemployed; unemployment rate; recession; unemployed workers; unemployment rates; unemployment ratio; beveridge; beveridge curve; labor demand; unemployed person; job mobility; low unemployment; unemployed persons; public employment; employment security; employment protection; low unemployment rate; labor supply; self-employment; high unemployment; average unemployment rate; rising unemployment; unemployment figure; unemployed people; high unemployment rates; structural unemployment; job search; employment subsidy; aggregate unemployment rate; lifetime employment; labor force; employment securities; labor law; employment turnover; employment subsidy program; labor force data; unemployments; job vacancy;

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    1. Kjell Erik Lommerud & Odd Rune Straume, 2008. "Employment Protection versus Flexicurity: On Technology Adoption in Unionised Firms," CESifo Working Paper Series 2472, CESifo Group Munich.
    2. Daniel Borowczyk-Martins & Gregory Jolivet & Fabien Postel-Vinay, 2013. "Accounting For Endogeneity in Matching Function Estimation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(3), pages 440-451, July.
    3. Davide Furceri & Lorenzo E. Bernal-Verdugo & Dominique M. Guillaume, 2012. "Crises, Labor Market Policy, and Unemployment," IMF Working Papers 12/65, International Monetary Fund.
    4. Bentolila, Samuel & Bertola, Giuseppe, 1990. "Firing Costs and Labour Demand: How Bad Is Eurosclerosis?," Review of Economic Studies, Wiley Blackwell, vol. 57(3), pages 381-402, July.
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