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Extensive vs. Intensive Margin in Japan

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Abstract

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.

Suggested Citation

  • Makoto Kakinaka & Hiroaki Miyamoto, 2012. "Extensive vs. Intensive Margin in Japan," Working Papers EMS_2012_14, Research Institute, International University of Japan.
    • Handle: RePEc:iuj:wpaper:ems_2012_14
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    File URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2012_14.pdf
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    References listed on IDEAS

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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, Decembrie.
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    3. Ohanian, Lee E. & Raffo, Andrea, 2012. "Aggregate hours worked in OECD countries: New measurement and implications for business cycles," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 40-56.
    4. 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.
    5. Shigeru Fujita & Garey Ramey, 2009. "The Cyclicality Of Separation And Job Finding Rates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 415-430, May.
    6. Merkl, Christian & Wesselbaum, Dennis, 2009. "Extensive vs. intensive margin in Germany and the United States: any differences?," Kiel Working Papers 1563, Kiel Institute for the World Economy (IfW Kiel).
    7. Miyamoto, Hiroaki, 2011. "Cyclical behavior of unemployment and job vacancies in Japan," Japan and the World Economy, Elsevier, vol. 23(3), pages 214-225.
    8. Christian Merkl & Dennis Wesselbaum, 2011. "Extensive versus intensive margin in Germany and the United States: any differences?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(9), pages 805-808.
    9. E. Paul Durrenberger, 2012. "Labour," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 8, Edward Elgar Publishing.
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    Cited by:

    1. 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.
    2. Alexander Herzog-Stein & Patrick Nüß, 2016. "Extensive versus intensive margin over the business cycle: New evidence for Germany and the United States," IMK Working Paper 163-2016, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. James Bishop & Linus Gustafsson & Michael Plumb, 2016. "Jobs or Hours? Cyclical Labour Market Adjustment in Australia," RBA Research Discussion Papers rdp2016-06, Reserve Bank of Australia.

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    More about this item

    Keywords

    intensive and extensive margins; labor adjustment; Japanese labor market;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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