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An Assessment of Abenomics from the Labor Market Perspective

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  • Daiji Kawaguchi
  • Keisuke Kawata
  • Takahiro Toriyabe

Abstract

The present paper documents the change in employment and wages between 2012 and 2020 when Prime Minister Shinzo Abe implemented his economic policy popularly known as Abenomics. Despite population aging that by itself would have decreased the employment rate by 2.8 percentage points, the aggregate employment rate increased from 56.5% in 2012 to 60.7% in 2019, largely because of a substantial increase in the 25–64‐year‐old female employment rate, which was especially profound in the health and welfare industry. The real wage declined by 1.8% from 2012 to 2017, of which 1.4% is explained by changes in worker composition, particularly the increase in female workers. We also assess the impact of COVID‐19 on the labor market in 2020 and discuss its impact on the long term labor market trend.

Suggested Citation

  • Daiji Kawaguchi & Keisuke Kawata & Takahiro Toriyabe, 2021. "An Assessment of Abenomics from the Labor Market Perspective," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(2), pages 247-278, July.
    • Handle: RePEc:bla:asiapr:v:16:y:2021:i:2:p:247-278
    DOI: 10.1111/aepr.12343
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    Cited by:

    1. Fukai, Taiyo & Ikeda, Masato & Kawaguchi, Daiji & Yamaguchi, Shintaro, 2023. "COVID-19 and the employment gender gap in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    2. KONDO Ayako, 2024. "Subtle Completed Fertility Recovery in Cohorts Who Entered the Labor Market during the Deep Recession in Japan," Discussion papers 24063, Research Institute of Economy, Trade and Industry (RIETI).
    3. Fukai, Taiyo & Ikeda, Masato & Kawaguchi, Daiji & Yamaguchi, Shintaro, 2021. "COVID-19 and the Employment Gender Gap," IZA Discussion Papers 14711, Institute of Labor Economics (IZA).
    4. Tomomi Miyazaki & Haruo Kondoh, 2022. "Effects of Monetary and Fiscal Policy Interactions on Regional Employment: Evidence from Japan," Discussion Papers 2206, Graduate School of Economics, Kobe University.
    5. Takano, Tetsuaki, 2024. "Worker flows by gender and industry in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 71(C).
    6. Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2021. "The Post‐Abenomics Japanese Economy: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(2), pages 169-189, July.
    7. Didem Koca, 2022. "Comparative Analysis of the Labor Market Structure and Active Labor Market Policies of G7 Countries and Turkey Between 2000-2020," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(83), pages 101-140, December.
    8. Yukiko Abe, 2021. "Comment on “An Assessment of Abenomics from the Labor Market Perspective”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(2), pages 279-280, July.

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