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Gross Worker Flows and Unemployment Dynamics in Japan

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Abstract

This paper studies worker flows dynamics in Japan for the period between 1980 and 2009. We construct gross worker flows data from the monthly Labour Force Survey. Our data enables us to examine the size and cyclical patterns of the flows and transition rates between the states of employment, unemployment, and not-in-the labor force. We find that the cyclical pattern of worker flows is similar to that found in other countries, while worker flows in Japan are generally smaller than those in the U.S. and European countries. We also decompose changes in unemployment into contributions due to changes in unemployment inflow and outflow rates. We find that both inflow and outflow rate play an important role to account for variation in the unemployment rate in Japan.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2010_07.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2010_07.

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Length: 32 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2010_07

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Keywords: Unemployment dynamics; Gross worker flows; Job finding rate; Separation rate;

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References

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  1. Shigeru Fujita & Garey Ramey, 2009. "The Cyclicality Of Separation And Job Finding Rates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 415-430, 05.
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  8. Petrongolo, Barbara & Pissarides, Christopher A., 2008. "The Ins and Outs of European Unemployment," IZA Discussion Papers 3315, Institute for the Study of Labor (IZA).
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  14. Baker, Michael, 1992. "Unemployment Duration: Compositional Effects and Cyclical Variability," American Economic Review, American Economic Association, vol. 82(1), pages 313-21, March.
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  16. T. Aldrich Finegan & Roberto V. Penaloza & Mototsugu Shintani, 2008. "Reassessing Cyclical Changes in Workers' Labor Market Status: Gross Flows and the Types of Workers Who Determine Them," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 61(2), pages 244-257, January.
  17. Gary Solon & Ryan Michaels & Michael W. L. Elsby, 2009. "The Ins and Outs of Cyclical Unemployment," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 84-110, January.
  18. Robert E. Hall, 2005. "Employment Efficiency and Sticky Wages: Evidence from Flows in the Labor Market," NBER Working Papers 11183, National Bureau of Economic Research, Inc.
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  20. Kuroda, Sachiko, 2003. "Analysis of Changes in Japan's Unemployment Rate Using Gross Flow Data," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 21(1), pages 69-104, February.
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Citations

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Cited by:
  1. Ching-Yang Lin & Hiroaki Miyamoto, 2012. "Estimating a Search and Matching Model of the Aggregate Labor Market in Japan," CIRJE F-Series CIRJE-F-850, CIRJE, Faculty of Economics, University of Tokyo.
  2. Kato, Ryuta Ray & Miyamoto, Hiroaki, 2013. "Fiscal stimulus and labor market dynamics in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 30(C), pages 33-58.
  3. Makoto Kakinaka & Hiroaki Miyamoto, 2012. "Unemployment and labour force participation in Japan," Applied Economics Letters, Taylor & Francis Journals, vol. 19(11), pages 1039-1043, July.
  4. Ching-Yang Lin & Hiroaki Miyamoto, 2014. "An Estimated Search and Matching Model of the Japanese Labor Market," Working Papers EMS_2014_02, Research Institute, International University of Japan.

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