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Extensive vs. Intensive Margin in Japan

This paper studies the role of extensive and intensive margins of labor adjustment overbusiness cycle in Japan. We find that the intensive margin accounts for much of total hours worked variation, and its contribution to the fluctuation of total hours worked is about 77%. This result is in sharp contrast with those in the U.S. and European countries where the extensive margin mainly accounts for the overall variability in total hours worked. The implication of a recent rise in non-regular employment for firms' labor adjustment behavior is also discussed.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2012_14.pdf
File Function: First version, 2012
Download Restriction: no

Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2012_14.

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Length: 9 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2012_14
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  1. Rebick, Marcus, 2005. "The Japanese Employment System: Adapting to a New Economic Environment," OUP Catalogue, Oxford University Press, number 9780199247240, March.
  2. E. Paul Durrenberger, 2012. "Labour," Chapters, in: A Handbook of Economic Anthropology, Second Edition, chapter 8 Edward Elgar.
  3. Petrongolo, Barbara & Pissarides, Christopher A., 2008. "The Ins and Outs of European Unemployment," IZA Discussion Papers 3315, Institute for the Study of Labor (IZA).
  4. Christian Merkl & Dennis Wesselbaum, 2009. "Extensive vs. Intensive Margin in Germany and the United States: Any Differences?," Kiel Working Papers 1563, Kiel Institute for the World Economy.
  5. Lee E. Ohanian & Andrea Raffo, 2011. "Aggregate Hours Worked in OECD Countries: New Measurement and Implications for Business Cycles," NBER Working Papers 17420, National Bureau of Economic Research, Inc.
  6. Shigeru Fujita & Garey Ramey, 2007. "The cyclicality of separation and job finding rates," Working Papers 07-19, Federal Reserve Bank of Philadelphia.
  7. Esteban-Pretel, Julen & Nakajima, Ryo & Tanaka, Ryuichi, 2011. "Are contingent jobs dead ends or stepping stones to regular jobs? Evidence from a structural estimation," Labour Economics, Elsevier, vol. 18(4), pages 513-526, August.
  8. 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.
  9. Miyamoto, Hiroaki, 2011. "Cyclical behavior of unemployment and job vacancies in Japan," Japan and the World Economy, Elsevier, vol. 23(3), pages 214-225.
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