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Gross Worker Flows and Unemployment Dynamics in Japan

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Abstract

This paper studies worker flows dynamics in Japan for the period between 1980 and 2009. We construct gross worker flows data from the monthly Labour Force Survey. Our data enables us to examine the size and cyclical patterns of the flows and transition rates between the states of employment, unemployment, and not-in-the labor force. We find that the cyclical pattern of worker flows is similar to that found in other countries, while worker flows in Japan are generally smaller than those in the U.S. and European countries. We also decompose changes in unemployment into contributions due to changes in unemployment inflow and outflow rates. We find that both inflow and outflow rate play an important role to account for variation in the unemployment rate in Japan.

Suggested Citation

  • Ching-Yang Lin & Hiroaki Miyamoto, 2010. "Gross Worker Flows and Unemployment Dynamics in Japan," Working Papers EMS_2010_07, Research Institute, International University of Japan.
  • Handle: RePEc:iuj:wpaper:ems_2010_07
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    Cited by:

    1. Arai, Yoichi & Ichimura, Hidehiko & Kawaguchi, Daiji, 2015. "The educational upgrading of Japanese youth, 1982–2007: Are all Japanese youth ready for structural reforms?," Journal of the Japanese and International Economies, Elsevier, vol. 37(C), pages 100-126.
    2. Kudoh, Noritaka & Miyamoto, Hiroaki & Sasaki, Masaru, 2015. "Employment and Hours over the Business Cycle in a Model with Search Frictions," IZA Discussion Papers 8946, Institute for the Study of Labor (IZA).
    3. Chun-Hung Kuo & Hiroaki Miyamoto, 2016. "Unemployment and Wage Rigidity in Japan: A DSGE Model Perspective," Working Papers EMS_2016_06, Research Institute, International University of Japan.
    4. Hiroshi Teruyama & Hiroyuki Toda, 2017. "Polarization and Persistence in the Japanese Labor Market," KIER Working Papers 957, Kyoto University, Institute of Economic Research.
    5. Ching-Yang Lin & Hiroaki Miyamoto, 2012. "Estimating a Search and Matching Model of the Aggregate Labor Market in Japan," CIRJE F-Series CIRJE-F-850, CIRJE, Faculty of Economics, University of Tokyo.
    6. Makoto Kakinaka & Hiroaki Miyamoto, 2012. "Unemployment and labour force participation in Japan," Applied Economics Letters, Taylor & Francis Journals, vol. 19(11), pages 1039-1043, July.
    7. Liu, De-Chih, 2014. "The link between unemployment and labor force participation rates in Japan: A regional perspective," Japan and the World Economy, Elsevier, vol. 30(C), pages 52-58.
    8. Ryuta Ray Kato & Hiroaki Miyamoto, 2015. "Effects of Fiscal Stimulus on the Labor Market," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 11(2), pages 277-302, March.
    9. FUJITA Shigeru & FUJIWARA Ippei, 2015. "Declining Trends in the Real Interest Rate and Inflation: Role of aging," Discussion papers 15140, Research Institute of Economy, Trade and Industry (RIETI).
    10. Hiroaki Miyamoto, 2016. "Uncertainty shocks and labor market dynamics in Japan," Working Papers SDES-2016-8, Kochi University of Technology, School of Economics and Management, revised Jun 2016.
    11. Miyamoto Hiroaki, 2016. "Growth and non-regular employment," The B.E. Journal of Macroeconomics, De Gruyter, vol. 16(2), pages 523-554, June.
    12. Shah, Mumtaz Hussain, 2016. "Financial development and foreign direct investment: The case of Middle East and North African (MENA) developing nations," MPRA Paper 82013, University Library of Munich, Germany.
    13. Shintaro Yamaguchi, 2016. "Effects of Parental Leave Policies on Female Career and Fertility Choices," Department of Economics Working Papers 2016-10, McMaster University.
    14. Lin, Ching-Yang & Miyamoto, Hiroaki, 2014. "An estimated search and matching model of the Japanese labor market," Journal of the Japanese and International Economies, Elsevier, vol. 32(C), pages 86-104.
    15. repec:bla:jecrev:v:68:y:2017:i:2:p:188-199 is not listed on IDEAS
    16. Makoto Kakinaka & Hiroaki Miyamoto, 2012. "Extensive vs. Intensive Margin in Japan," Working Papers EMS_2012_14, Research Institute, International University of Japan.
    17. Fujita, Shigeru & Fujiwara, Ippei, 2016. "Declining Trends In The Real Interest Rate And Inflation: The Role Of Aging," Working Papers 16-29, Federal Reserve Bank of Philadelphia.
    18. Kato, Ryuta Ray & Miyamoto, Hiroaki, 2013. "Fiscal stimulus and labor market dynamics in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 30(C), pages 33-58.
    19. Esteban-Pretel, Julen & Tanaka, Ryuichi & Meng, Xiangcai, 2017. "Changes in Japan’s labor market during the Lost Decade and the role of demographics," Journal of the Japanese and International Economies, Elsevier, vol. 43(C), pages 19-37.
    20. Yamaguchi, Shintaro, 2016. "Effects of Parental Leave Policies on Female Career and Fertility Choices," CEI Working Paper Series 2016-8, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    21. Sinem Ayhan, 2013. "Do non-wage cost rigidities slow down employment? Evidence from Turkey," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    22. Barnichon, Regis & Garda, Paula, 2016. "Forecasting unemployment across countries: The ins and outs," European Economic Review, Elsevier, vol. 84(C), pages 165-183.

    More about this item

    Keywords

    Unemployment dynamics; Gross worker flows; Job finding rate; Separation rate;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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