Cyclical Behavior of Unemployment and Job Vacancies in Japan

• Miyamoto Hiroaki

  Assistant Professor, Graduate School of International Relations, International University of Japan

Abstract

This paper studies whether the Mortensen and Pissarides (MP) search and matching model can explain the observed labor market fluctuations in Japan. Although the MP model correctly predicts the observed regularities in the cyclical fluctuations of unemployment and job vacancies, it cannotgenerate the observed unemployment and vacancy fluctuations in response to productivity shock of reasonable size. I incorporate separation shocks and training costs into the MP model, finding thattheir inclusions do not significantly improve the ability of the model to explain the cyclical volatility of unemployment and vacancies observed in the Japanese labor market. This paper also provides thebusiness-cycle properties of the Japanese labor market.

Journal

• Economic analysis & policy series

  Economic analysis & policy series 9 1-24, 2009-12

  International University of Japan

Keywords

• Search
• Matching
• Business Cycles
• Japanese Labor Market

Details

• CRID: 1571980077498815360
• NII Article ID: 110007389294
• NII Book ID: AA12219099
• Text Lang: en
• Data Source:
  • CiNii Articles