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Is Labor Market Mismatch a Big Deal in Japan?

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  • Shibata Ippei

    (International Monetary Fund, WashingtonDC, USA)

Abstract

This paper estimates Japanese labor market mismatch between 2000 and 2019 by using the method of Sahin et al. (“Mismatch Unemployment.” The American Economic Review 104 (11): 3529–64, 2014). We quantify contract-type (regular or non-regular), employment-type (full or part-time), and occupational mismatch and their respective contributions to changes in unemployment. All three types of mismatch show a countercyclical pattern, sharply increasing during the global financial crisis (GFC), but slowly declining during the recovery. Contract-type and occupational mismatch accounted for a significant portion of the rise in the unemployment rate during the GFC, each accounting for around 30 and 20–40 percent, respectively. Employment-type mismatch, on the other hand, accounted for much less–at around 15 perecent of the rise in unemployment for the same period.

Suggested Citation

  • Shibata Ippei, 2020. "Is Labor Market Mismatch a Big Deal in Japan?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 20(2), pages 1-28, June.
    • Handle: RePEc:bpj:bejmac:v:20:y:2020:i:2:p:28:n:3
    DOI: 10.1515/bejm-2016-0179
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    Cited by:

    1. Ms. Elif C Arbatli Saxegaard & Mr. Dennis P Botman & Kevin Clinton & Pietro Cova & Vitor Gaspar & Zoltan Jakab & Mr. Douglas Laxton & Mr. Constant A Lonkeng Ngouana & Mr. Joannes Mongardini & Hou Wang, 2016. "Reflating Japan: Time to Get Unconventional?," IMF Working Papers 2016/157, International Monetary Fund.
    2. Hugo Erken & Eric Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch Labour Market in the Great Recession," De Economist, Springer, vol. 163(4), pages 435-459, December.
    3. Suguru Otani, 2024. "Nonparametric Estimation of Matching Efficiency and Mismatch in Labor Markets via Public Employment Security Offices in Japan, 1972-2024," Papers 2407.20931, arXiv.org, revised Dec 2024.
    4. Takano, Tetsuaki, 2024. "Worker flows by gender and industry in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 71(C).
    5. Higashi, Yudai & Sasaki, Masaru, 2023. "Did COVID-19 Deteriorate Mismatch in the Japanese Labor Market?," IZA Discussion Papers 15917, Institute of Labor Economics (IZA).
    6. Hugo Erken & Eric van Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch labour market in the Great Recession," CPB Discussion Paper 303.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Hugo Erken & Eric van Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch labour market in the Great Recession," CPB Discussion Paper 303, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Andrés Álvarez, 2016. "La Curva de Beveridge en Colombia (1976-2014): Cambios cíclicos y estructurales," Borradores de Economia 962, Banco de la Republica de Colombia.

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    More about this item

    Keywords

    Japanese labor market; mismatch; unemployment; vacancies; E24; J23; J63; J64;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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