Estimating a Search and Matching Model of the Ag-gregate Labor Market in Japan
AbstractThis paper studies how well a simple search and matching model can describe aggregate Japanese labor market dynamics in a full information setting. We develop a discrete-time search and matching model with a convex vacancy posting cost and three shocks: productivity, separation, and mark-up shocks. We use the model as a data-generating process for our empirical analysis and estimate it by using Bayesian methods. The model is successful in replicating the behavior of unemployment and vacancies in Japan. However, we also find that the success of the model relies on shock processes that are not empirically plausible.
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Bibliographic InfoPaper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2013_09.
Length: 29 pages
Date of creation: Jul 2013
Date of revision:
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Web page: http://www.iuj.ac.jp/research/
More information through EDIRC
Search and matching model; Unemployment; Bayesian Estimation; Japanese labor market;
Other versions of this item:
- 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.
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-28 (All new papers)
- NEP-DGE-2013-07-28 (Dynamic General Equilibrium)
- NEP-LAB-2013-07-28 (Labour Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Estimating a Search and Matching Model of the Aggregate Labor Market in Japan
by Christian Zimmermann in NEP-DGE blog on 2012-05-04 21:26:06
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