The Lost Decade in the Japanese Labor Market : LaborÃ¢â‚¬â„¢s share and OkunÃ¢â‚¬â„¢s Law
The purpose of this study is to reexamine two empirical regularities in the Japanese labor market : the constant labor share and Okun's law. The former law relates to the price of labor in the labor market while the latter is a quantity law; they represent suitable benchmarks for judging the condition of the labor market. Although there are more elaborate statistical techniques, these laws are frequently used because they can clarify the macroeconomic situation at a glance. First, a constant labor share is implied in theory by the CobbDouglas production function. Thus, labors share should be based on the production function. Labors share based on income has only been rising because of massive depreciation. Secondly, there have been several structural breaks in Okun's law since the bubble collapsed, and the potential growth rate has fallen.
|Date of creation:||Jan 2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.eaber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Gomme & Jeremy Greenwood, 1992.
"On the cyclical allocation of risk,"
Discussion Paper / Institute for Empirical Macroeconomics
71, Federal Reserve Bank of Minneapolis.
- Gomme, P. & Greenwood, J., 1992. "On the Cyclical Allocation of Risk," UWO Department of Economics Working Papers 9205, University of Western Ontario, Department of Economics.
- Gomme, P. & Greenwood, J., 1993. "On the Cyclical Allocation of Risk," RCER Working Papers 355, University of Rochester - Center for Economic Research (RCER).
- Cadiou, Loı̈c & Dées, Stéphane & Laffargue, Jean-Pierre, 2003.
"A computational general equilibrium model with vintage capital,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 27(11), pages 1961-1991.
- Cadiou, Loic & Dees, Stephane & Laffargue, Jean-Pierre, 2003. "A computational general equilibrium model with vintage capital," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11-12), pages 1961-1991, September.
- Kessing, Sebastian, 2002.
"A note on the determinants of labour share movements
[Determinanten von Lohnquotenschwankungen]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-30, Social Science Research Center Berlin (WZB).
- Kessing, Sebastian G., 2003. "A note on the determinants of labour share movements," Economics Letters, Elsevier, vol. 81(1), pages 9-12, October.
- Boldrin, Michael & Horvath, Michael, 1995.
"Labor Contracts and Business Cycles,"
Journal of Political Economy,
University of Chicago Press, vol. 103(5), pages 972-1004, October.
- Andrew Young, 2004. "Labor's Share Fluctuations, Biased Technical Change, and the Business Cycle," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(4), pages 916-931, October.
- Clark, Peter K., 1989. "Trend reversion in real output and unemployment," Journal of Econometrics, Elsevier, vol. 40(1), pages 15-32, January.
When requesting a correction, please mention this item's handle: RePEc:eab:laborw:22317. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong)
If references are entirely missing, you can add them using this form.