Unemployment and Labor Force Participation in Japan

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This paper studies a long-run relationship between the labor force participation rate and the unemployment rate in Japan. By using cointegration analysis, we demonstrate that there exists a long-run relationship between the two variables for male workers but not for female workers. Furthermore, using labor force data by age group, we …nd the added-worker e¤ect for young males and the discouraged worker e¤ect for middle-aged and old male groups.

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