Estimating a Search and Matching Model of the Aggregate Labor Market in Japan
This paper studies how well a search and matching model can describe aggregate Japanese labor market dynamics in a full information setting. We develop a discrete- time search and matching model with productivity and separation shocks and use it as a data-generating process for our empirical analysis. Using Bayesian methods, we estimate the model for data on unemployment and vacancy postings in Japan. We Â…nd that the model is successful in matching the volatility in unemployment and vacancies while it does not match the volatility of output and wages. We also Â…nd that both productivity and separation shocks contribute to movements in unemployment and vacancies, but productivity shocks more so.
|Date of creation:||Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2011. "Japan's Labor Market Cyclicality and the Volatility Puzzle," Discussion papers 11040, Research Institute of Economy, Trade and Industry (RIETI).
- Krause, M.U. & Lubik, T.A., 2003.
"The (Ir)relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions,"
2003-113, Tilburg University, Center for Economic Research.
- Krause, Michael U. & Lubik, Thomas A., 2007. "The (ir)relevance of real wage rigidity in the New Keynesian model with search frictions," Journal of Monetary Economics, Elsevier, vol. 54(3), pages 706-727, April.
- Thomas Lubik & Michael Krause, 2003. "The (Ir)relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions," Economics Working Paper Archive 504, The Johns Hopkins University,Department of Economics.
- Marcus Hagedorn & Iourii Manovskii, 2007.
"The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited,"
IEW - Working Papers
351, Institute for Empirical Research in Economics - University of Zurich.
- Marcus Hagedorn & Iourii Manovskii, 2008. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," American Economic Review, American Economic Association, vol. 98(4), pages 1692-1706, September.
- Marcus Hagedorn & Iourii Manovskii, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited," 2005 Meeting Papers 460, Society for Economic Dynamics.
- Hagedorn, Marcus & Manovskii, Iourii, 2008. "The cyclical behavior of equilibrium unemployment and vacancies revisited," Working Paper Series 0853, European Central Bank.
- Petrongolo, Barbara & Pissarides, Christopher, 2000.
"Looking Into The Black Box: A Survey Of The Matching Function,"
CEPR Discussion Papers
2409, C.E.P.R. Discussion Papers.
- Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
- Barbara Petrongolo & Christopher Pissarides, 2000. "Looking into the black box: a survey of the matching function," LSE Research Online Documents on Economics 2122, London School of Economics and Political Science, LSE Library.
- Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE.
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2005. "Unemployment and vacancy fluctuations in the matching model: inspecting the mechanism," Economic Quarterly, Federal Reserve Bank of Richmond, issue Sum, pages 19-50.
- An, Sungbae & Schorfheide, Frank, 2005.
"Bayesian Analysis of DSGE Models,"
CEPR Discussion Papers
5207, C.E.P.R. Discussion Papers.
- 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.
- 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.
- John P Martin, 1998.
"What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences,"
RBA Annual Conference Volume,
in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market
Reserve Bank of Australia.
- John P. Martin, 1998. "What Works Among Active Labour Market Policies: Evidence From OECD Countries' Experiences," OECD Labour Market and Social Policy Occasional Papers 35, OECD Publishing.
- Ellen R. McGrattan & Patrick J. Kehoe & V. V. Chari, 2008.
"New Keynesian models: not yet useful for policy analysis,"
664, Federal Reserve Bank of Minneapolis.
- V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2009. "New Keynesian Models: Not Yet Useful for Policy Analysis," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 242-66, January.
- V.V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2008. "New Keynesian Models: Not Yet Useful for Policy Analysis," NBER Working Papers 14313, National Bureau of Economic Research, Inc.
- V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2008. "New Keynesian models: not yet useful for policy analysis," Staff Report 409, Federal Reserve Bank of Minneapolis.
- Shigeru Fujita & Garey Ramey, 2012. "Exogenous versus Endogenous Separation," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(4), pages 68-93, October.
- Fujita, Shigeru & Ramey, Garey, 2007.
"Job matching and propagation,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 31(11), pages 3671-3698, November.
- Shigeru Fugita & Garey Ramey, 2006. "Job matching and propagation," Working Papers 06-13, Federal Reserve Bank of Philadelphia.
- Ramey, Garey & Fujita, Shigeru, 2006. "Job Matching and Propagation," University of California at San Diego, Economics Working Paper Series qt53s671h7, Department of Economics, UC San Diego.
- Robert E. Hall, 2005. "Employment Fluctuations with Equilibrium Wage Stickiness," American Economic Review, American Economic Association, vol. 95(1), pages 50-65, March.
- Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, March.
- Thomas A. Lubik, 2011. "Aggregate labor market dynamics in Hong Kong," Working Paper 11-02, Federal Reserve Bank of Richmond.
- Sungbae An & Frank Schorfheide, 2007. "Bayesian Analysis of DSGE Models—Rejoinder," Econometric Reviews, Taylor & Francis Journals, vol. 26(2-4), pages 211-219.
- Hiroaki Miyamoto, 2009.
"Cyclical Behavior of Unemployment and Job Vacancies in Japan,"
EMS_2009_17, Research Institute, International University of Japan.
- Miyamoto, Hiroaki, 2011. "Cyclical behavior of unemployment and job vacancies in Japan," Japan and the World Economy, Elsevier, vol. 23(3), pages 214-225.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2012cf850. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.