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Measuring Search Frictions Using Japanese Microdata

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  • Masaru Sasaki

    ()
    (Osaka University)

  • Miki Kohara

    (Osaka University)

  • Tomohiro Machikita

    (IDE-JETRO)

Abstract

This paper estimates matching functions to measure search frictions in the Japanese labor market and presents determinants of search duration to explain the effect of unemployment benefits on a job seekerfs behavior. We employ administrative micro data that track the job search process of individuals who left or lost their job in August 2005 and subsequently registered at their local public employment service. Our finding is that the matching function would exhibit decreasing returns-to-scale for job seekers and vacancies, rather than constant return-to-scale. We also find that generous unemployment benefits lengthen (shorten) the duration of job search for job seekers who voluntarily (involuntarily) leave employment.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1107R.pdf
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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 11-07-Rev.

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Length: 36 pages
Date of creation: Feb 2011
Date of revision: May 2012
Handle: RePEc:osk:wpaper:1107r

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: Job Search; Matching Model; Unemployment; Unemployment Benefits;

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  1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
  2. John T. Addison & Pedro Portugal, 2002. "Job search methods and outcomes," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 505-533, July.
  3. Kano, Shigeki & Ohta, Makoto, 2005. "Estimating a matching function and regional matching efficiencies: Japanese panel data for 1973-1999," Japan and the World Economy, Elsevier, vol. 17(1), pages 25-41, January.
  4. Coles, Melvyn G & Smith, Eric, 1996. "Cross-Section Estimation of the Matching Function: Evidence from England and Wales," Economica, London School of Economics and Political Science, vol. 63(252), pages 589-97, November.
  5. Yashiv, E., 1999. "The Determinants of Equilibrium Unemployment," Papers 36-99, Tel Aviv.
  6. Fahr, Rene & Sunde, Uwe, 2005. "Job and vacancy competition in empirical matching functions," Labour Economics, Elsevier, vol. 12(6), pages 773-780, December.
  7. Masaru Sasaki, 2008. "Matching Function For The Japanese Labour Market: Random Or Stock-Flow?," Bulletin of Economic Research, Wiley Blackwell, vol. 60(2), pages 209-230, 04.
  8. Gregg, Paul & Wadsworth, Jonathan, 1996. "How Effective Are State Employment Agencies? Jobcentre Use and Job Matching in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 443-67, August.
  9. Fahr, René & Sunde, Uwe, 2005. "Job and vacancy competition in empirical matching functions," Munich Reprints in Economics 20487, University of Munich, Department of Economics.
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