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Effects of Monetary and Fiscal Policy Interactions on Regional Employment: Evidence from Japan

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  • Tomomi Miyazaki

    (Graduate School of Economics, Kobe University)

  • Haruo Kondoh

    (Department of Economics, Seinan Gakuin University)

Abstract

This study examines the effects of the interaction between unconventional monetary policy and fiscal stimulus on regional employment in Japan. A mixed vector autoregressions (VARs)/event study approach is used. Our empirical findings first show that whereas employment recovery was salient in western Japan, it was not the case in Tokyo metropolitan areas, the country’s main economic hub. Second, we confirm employment recovery on female employees in all regions. However, we do not observe this on male employees, implying the policy interaction did not necessarily increase the number of regular workers, which might suppress a wage hike in the entire country.

Suggested Citation

  • 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.
    • Handle: RePEc:koe:wpaper:2206
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