Life-Cycle Search, Match Quality and Japan's Labor Flow
The Japanese labor market displays U-shaped unemployment and separation rates, and declining job-finding rates as workers age. Traditional infinite horizon search models of the labor market cannot account for such patterns. We develop a life-cycle search and matching model that features random match quality and incorporates elements capturing several main characteristics of the Japanese labor market. We show that the model, calibrated for Japan, replicates the life-cycle properties of the data. Our model, following an empirically plausible productivity drop, produces changes in the steady state levels of the unemployment and finding rates similar in magnitude to those observed in Japan since the 1980s.
|Date of creation:||Apr 2011|
|Date of revision:|
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- Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2013.
"Life-Cycle Equilibrium Unemployment,"
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University of Chicago Press, vol. 31(4), pages 843 - 882.
- Chéron, Arnaud & Hairault, Jean-Olivier & Langot, François, 2008. "Life-Cycle Equilibrium Unemployment," IZA Discussion Papers 3396, Institute for the Study of Labor (IZA).
- Chéron, Arnaud & Hairault, Jean-Olivier & Langot, François, 2011. "Life Cycle Equilibrium Unemployment," CEPREMAP Working Papers (Docweb) 1103, CEPREMAP.
- Arnaud Chéron & Jean-Olivier Hairault & François Langot, 2013. "Life Cycle Equilibrium Unemployment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00759471, HAL.
- Julen Esteban-Pretel & Junichi Fujimoto, 2011.
"Life-Cycle Labor Search with Stochastic Match Quality,"
CIRJE-F-783, CIRJE, Faculty of Economics, University of Tokyo.
- Julen Esteban‐Pretel & Junichi Fujimoto, 2014. "Life‐Cycle Labor Search With Stochastic Match Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 575-599, 05.
- Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2009.
"TFP Growth Slowdown and the Japanese Labor Market in the 1990s,"
09003, Research Institute of Economy, Trade and Industry (RIETI).
- Esteban-Pretel, Julen & Nakajima, Ryo & Tanaka, Ryuichi, 2010. "TFP growth slowdown and the Japanese labor market in the 1990s," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 50-68, March.
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