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Pattern in Regional Labor Market Adjustment: The United States vs. Japan

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Edward B. Montgomery
Abstract

In this paper I examine regional labor market behavior in the United States and Japan. In contrast with the picture at the aggregate level, Japanese labor markets at the prefectural (regional) level appear to exhibit substantially more persistence than state level labor markets in the United States. The distribution (and positions of regions within the distribution) of wages, unemployment, employment growth, and migration remain remarkably constant in Japan for periods of up to 15 years. Although wages, unemployment, and migration appear to be driven by similar factors in both countries, wages appear to be slightly more sensitive while unemployment is less sensitive to demand shifts in Japan than in the U.S.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4414.

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Date of creation: Aug 1993
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Publication status: published as Social Protection versus Economic Flexibility: Is There a Trade-Off?ed. Rebecca Blank, University of Chicago Press, 1994
Handle: RePEc:nbr:nberwo:4414

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Find related papers by JEL classification:
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution

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  1. Abraham, Katharine G. & Houseman, Susan N., 1989. "Job security and work force adjustment: How different are U.S. and Japanese practices?," Journal of the Japanese and International Economies, Elsevier, vol. 3(4), pages 500-521, December. [Downloadable!] (restricted)
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  2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  3. Beeson, Patricia & Montgomery, Edward B, 1993. "The Effects of Colleges and Universities on Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 753-61, November. [Downloadable!] (restricted)
  4. Bjorklund, A. & Holmlund, B., 1988. "Job Mobility And Wage Subsequent Wages In Sweden," Papers 1988s, Uppsala - Working Paper Series.
  5. David G. Blanchflower & Andrew J. Oswald, 1992. "International Wage Curves," NBER Working Papers 4200, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Neumann, George R & Topel, Robert H, 1991. "Employment Risk, Diversification, and Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1341-65, November. [Downloadable!] (restricted)
  7. Timothy J. Bartik, 2003. "Local Economic Development Policies," Staff Working Papers 03-91, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  8. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December. [Downloadable!] (restricted)
  9. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June. [Downloadable!] (restricted)
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