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Unemployment and Labor Force Participation in Japan

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Abstract

This paper studies a long-run relationship between the labor force participation rate and the unemployment rate in Japan. By using cointegration analysis, we demonstrate that there exists a long-run relationship between the two variables for male workers but not for female workers. Furthermore, using labor force data by age group, we find the added-worker effect for young males and the discouraged worker effect for middle-aged and old male groups.

Suggested Citation

  • Makoto Kakinaka & Hiroaki Miyamoto, 2011. "Unemployment and Labor Force Participation in Japan," Working Papers EMS_2011_15, Research Institute, International University of Japan.
  • Handle: RePEc:iuj:wpaper:ems_2011_15
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    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2011_15.pdf
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    8. Karanassou Marika & Snower Dennis J., 2004. "Unemployment Invariance," German Economic Review, De Gruyter, vol. 5(3), pages 297-317, August.
    9. Österholm, Pär, 2010. "Unemployment and labour-force participation in Sweden," Economics Letters, Elsevier, vol. 106(3), pages 205-208, March.
    10. Lin, Ching-Yang & Miyamoto, Hiroaki, 2012. "Gross worker flows and unemployment dynamics in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 44-61.
    11. Emerson, Jamie, 2011. "Unemployment and labor force participation in the United States," Economics Letters, Elsevier, vol. 111(3), pages 203-206, June.
    12. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    13. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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    Cited by:

    1. Sibel Cengiz & Afsin Sahin, 2014. "Modelling nonlinear behavior of labor force participation rate by STAR: An application for Turkey," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 7(1), pages 113-127, April.
    2. Nicholas Apergis & Ibrahim Arisoy, 2017. "Unemployment and labor force participation across the US States: new evidence from panel data," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 67(4), pages 45-84, October-D.
    3. Mercy Laita Palamuleni, 2017. "The Unemployment Invariant Hypothesis: Heterogenous Panel Cointegration Evidence From U.S. State Level Data," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 414-419.
    4. Aysit Tansel & Zeynel Abidin Ozdemir, 2016. "Unemployment Invariance Hypothesis, Added and Discouraged Worker Effects in Canada?," ERC Working Papers 1717, ERC - Economic Research Center, Middle East Technical University, revised Dec 2017.
    5. Maridueña-Larrea, Ángel & Martín-Román, Ángel L., 2023. "The unemployment invariance hypothesis and the implications of added and discouraged worker effects in Latin America," MPRA Paper 115966, University Library of Munich, Germany.
    6. Martín-Román, Ángel L., 2022. "Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect," Economic Modelling, Elsevier, vol. 110(C).
    7. Aysit Tansel & Zeynel Abidin Ozdemir & Emre Aksoy, 2016. "Does Unemployment Invariance Hypothesis Hold for Canada?," Working Papers 2016/3, Turkish Economic Association.
    8. Ozerkek, Y., 2013. "Unemployment And Labor Force Participation: A Panel Cointegration Analysis For European Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 67-76.
    9. Tansel, Aysit & Ozdemir, Zeynel Abidin & Aksoy, Emre, 2016. "Does Unemployment Invariance Hypothesis Hold for Canada?," MPRA Paper 72869, University Library of Munich, Germany.
    10. Aysit Tansel & Zeynel Abidin Ozdemir, 2018. "Unemployment invariance hypothesis, added and discouraged worker effects in Canada," International Journal of Manpower, Emerald Group Publishing Limited, vol. 39(7), pages 929-936, October.
    11. Ibrahim Arisoy, 2018. "An Empirical Examination of Unemployment Invariance Hypothesis, Discouraged and Added Worker Effects in Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 11-14.
    12. Adrian Oţoiu & Emilia Ţiţan, 2016. "Does the unemployment invariance hypothesis hold for Romania?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(12), pages 884-887, August.

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    More about this item

    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
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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