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

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  • Edward B. Montgomery
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    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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    File URL: http://www.nber.org/papers/w4414.pdf
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    Bibliographic Info

    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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    1. I Matsukawa, 1991. "Interregional gross migration and structural changes in local industries," Environment and Planning A, Pion Ltd, London, vol. 23(5), pages 745-756, May.
    2. Masanori Hashimoto, 1990. "The Japanese Labor Market in a Comparative Perspective with the United States," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number jlm.
    3. Katharine G. Abraham & Susan N. Houseman, 1992. "Job Security and Work Force Adjustment: How Different are U.S. and Japanese Practices?," Book chapters authored by Upjohn Institute researchers, in: Giorgio Galeazzi & Daniel Hamermesh (ed.), Dynamic Labor Demand and Adjustment Costs, pages 280-301 W.E. Upjohn Institute for Employment Research.
    4. 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.
    5. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    6. Hiroshi Yoshikawa & Yoshiyuki Takeuchi, 1989. "Real Wages and the Japanese Economy," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 7(1), pages 1-40, April.
    7. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    8. Bjorklund, A. & Holmlund, B., 1988. "Job Mobility And Wage Subsequent Wages In Sweden," Papers 1988s, Uppsala - Working Paper Series.
    9. Takatoshi Ito, 1991. "The Japanese Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262090295, December.
    10. David G. Blanchflower & Andrew J. Oswald, 1992. "International Wage Curves," NBER Working Papers 4200, National Bureau of Economic Research, Inc.
      • David G. Blanchflower & Andrew Oswald, 1995. "International Wage Curves," NBER Chapters, in: Differences and Changes in Wage Structures, pages 145-174 National Bureau of Economic Research, Inc.
    11. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June.
    12. 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.
    13. 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.
    14. Timothy J. Bartik, 2003. "Local Economic Development Policies," Upjohn Working Papers and Journal Articles 03-91, W.E. Upjohn Institute for Employment Research.
    15. Randall W. Eberts & Joe A. Stone, 1992. "Wage and Employment Adjustment in Local Labor Markets," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wea.
    16. Thomas Hyclak & Geraint Johnes, 1992. "Wage Flexibility and Unemployment Dynamics in Regional Labor Markets," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wfud.
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    Cited by:
    1. Nagayasu, Jun & Inakura, Noriko, 2009. "PPP: Further evidence from Japanese regional data," International Review of Economics & Finance, Elsevier, vol. 18(3), pages 419-427, June.

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