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Measuring Search Frictions Using Japanese Microdata

  • Masaru Sasaki

    ()

    (Osaka University)

  • Miki Kohara

    (Osaka University)

  • Tomohiro Machikita

    (IDE-JETRO)

This paper estimates matching functions to measure search frictions in the Japanese labor market and presents determinants of search duration to explain the effect of unemployment benefits on a job seekerfs behavior. We employ administrative microdata that track the job search process of individuals who left or lost their job in August 2005 and subsequently registered at their local public employment service. Our finding is that the matching function would exhibit decreasing returns-to-scale for job seekers and vacancies, rather than constant return-to-scale. We also find that generous unemployment benefits lengthen (shorten) the duration of job search for job seekers who voluntarily (involuntarily) leave employment.

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Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 11-07.

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Length: 36 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:osk:wpaper:1107
Contact details of provider: Web page: http://www.econ.osaka-u.ac.jp/Email:


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  1. Gregg, Paul & Wadsworth, Jonathan, 1996. "How Effective Are State Employment Agencies? Jobcentre Use and Job Matching in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 443-67, August.
  2. Coles, Melvyn G & Smith, Eric, 1994. "Cross-Section Estimation of the Matching Function: Evidence from England and Wales," CEPR Discussion Papers 966, C.E.P.R. Discussion Papers.
  3. Addison, John T. & Portugal, Pedro, 1998. "Job Search Methods and Outcomes," ZEW Discussion Papers 98-41, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Yashiv, E., 1999. "The Determinants of Equilibrium Unemployment," Papers 36-99, Tel Aviv.
  5. Kano, Shigeki & Ohta, Makoto, 2005. "Estimating a matching function and regional matching efficiencies: Japanese panel data for 1973-1999," Japan and the World Economy, Elsevier, vol. 17(1), pages 25-41, January.
  6. Fahr, Rene & Sunde, Uwe, 2005. "Job and vacancy competition in empirical matching functions," Labour Economics, Elsevier, vol. 12(6), pages 773-780, December.
  7. van Ours, J.C. & Broersma, L., 1999. "Job searchers, job matches and the elasticity of matching," Other publications TiSEM c199f354-b73c-49b6-84f6-e, School of Economics and Management.
  8. Masaru Sasaki, 2008. "Matching Function For The Japanese Labour Market: Random Or Stock-Flow?," Bulletin of Economic Research, Wiley Blackwell, vol. 60(2), pages 209-230, 04.
  9. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
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