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An Interval Regression Analysis for Tenures of Japanese Elder Care Workers Using Matched Employer-Employee Data

  • Shinya Sugawara

    (Faculty of Economics, University of Tokyo)

   This paper analyzes job tenures of Japanese elder care workers in the home care service sector, using an econometric framework that can fully utilize information of available data. This sector reveals a large betweenfirm difference in workers' separation rates, despite a regulation policy that induces a limited wage dispersion. I rationalize this puzzling observation by a screening model in which firms try to avoid adverse selection caused by information asymmetry regarding workers' motivation. My model induces a separating equilibrium in which several firms cover training costs for general human capital accumulation of workers. To examine a testable implication of my screening model, I construct an interval regression model using cross-section data with matched employer-employee information. A standard Bayesian estimation provides empirical results that support my economics model.

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File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2013/2013cf887.pdf
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-887.

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Length: 30 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:tky:fseres:2013cf887
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  1. Arie Beresteanu & Francesca Molinari, 2008. "Asymptotic Properties for a Class of Partially Identified Models," Econometrica, Econometric Society, vol. 76(4), pages 763-814, 07.
  2. Shinya Sugawara & Yasuhiro Omori, 2013. "An Econometric Analysis of Insurance Markets with Separate Identification for Moral Hazard and Selection," CIRJE F-Series CIRJE-F-882, CIRJE, Faculty of Economics, University of Tokyo.
  3. Haruko Noguchi & Satoshi Shimizutani, 2005. "Nonprofit/For-Profit Status and Earning Differentials in the Japanese At-home Elderly Care Industry: Evidence from Micro-level Data on Home Helpers and Staff Nurses," Hi-Stat Discussion Paper Series d04-76, Institute of Economic Research, Hitotsubashi University.
  4. Powers Elizabeth T & Powers Nicholas J, 2010. "Causes of Caregiver Turnover and the Potential Effectiveness of Wage Subsidies for Solving the Long-Term Care Workforce 'Crisis'," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-30, January.
  5. Shinya Sugawara & Yasuhiro Omori, 2011. "Duopoly in the Japanese Airline Market: Bayesian Estimation for the Entry Game," CIRJE F-Series CIRJE-F-797, CIRJE, Faculty of Economics, University of Tokyo.
  6. Jason Abrevaya, 1999. "Rank estimation of a transformation model with observed truncation," Econometrics Journal, Royal Economic Society, vol. 2(2), pages 292-305.
  7. Charles F. Manski & Elie Tamer, 2002. "Inference on Regressions with Interval Data on a Regressor or Outcome," Econometrica, Econometric Society, vol. 70(2), pages 519-546, March.
  8. Knapp, Martin & Missiakoulis, Spyros, 1983. "Predicting turnover rates among the staff of English and Welsh old people's homes," Social Science & Medicine, Elsevier, vol. 17(1), pages 29-36, January.
  9. Hyungsik Roger Moon & Frank Schorfheide, 2012. "Bayesian and Frequentist Inference in Partially Identified Models," Econometrica, Econometric Society, vol. 80(2), pages 755-782, 03.
  10. Bo E. Honoré & Luojia Hu, 2009. "Estimation of a transformation model with truncation, interval observation and time-varying covariates," Working Paper Series WP-09-16, Federal Reserve Bank of Chicago.
  11. Reagan A. Baughman & Kristin E. Smith, 2012. "Labor Mobility Of The Direct Care Workforce: Implications For The Provision Of Long‐Term Care," Health Economics, John Wiley & Sons, Ltd., vol. 21(12), pages 1402-1415, December.
  12. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
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