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Extensive vs. Intensive Margin in Japan

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Abstract

This paper studies the role of extensive and intensive margins of labor adjustment overbusiness cycle in Japan. We find that the intensive margin accounts for much of total hours worked variation, and its contribution to the fluctuation of total hours worked is about 77%. This result is in sharp contrast with those in the U.S. and European countries where the extensive margin mainly accounts for the overall variability in total hours worked. The implication of a recent rise in non-regular employment for firms' labor adjustment behavior is also discussed.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2012_14.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2012_14.

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Length: 9 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2012_14

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Keywords: intensive and extensive margins; labor adjustment; Japanese labor market;

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References

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  1. Esteban-Pretel, Julen & Nakajima, Ryo & Tanaka, Ryuichi, 2011. "Are contingent jobs dead ends or stepping stones to regular jobs? Evidence from a structural estimation," Labour Economics, Elsevier, vol. 18(4), pages 513-526, August.
  2. Hiroaki Miyamoto, 2009. "Cyclical Behavior of Unemployment and Job Vacancies in Japan," Working Papers EMS_2009_17, Research Institute, International University of Japan.
  3. Ching-Yang Lin & Hiroaki Miyamoto, 2010. "Gross Worker Flows and Unemployment Dynamics in Japan," Working Papers EMS_2010_07, Research Institute, International University of Japan.
  4. Petrongolo, Barbara & Pissarides, Christopher, 2008. "The Ins and Outs of European Unemployment," CEPR Discussion Papers 6681, C.E.P.R. Discussion Papers.
  5. Lee E. Ohanian & Andrea Raffo, 2011. "Aggregate Hours Worked in OECD Countries: New Measurement and Implications for Business Cycles," NBER Working Papers 17420, National Bureau of Economic Research, Inc.
  6. Rebick, Marcus, 2005. "The Japanese Employment System: Adapting to a New Economic Environment," OUP Catalogue, Oxford University Press, number 9780199247240.
  7. 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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Cited by:
  1. 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.

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