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Estimating a Search and Matching Model of the Aggregate Labor Market in Japan

Author

Listed:
  • Ching-Yang Lin

    (Graduate School of International Relations, International University of Japan)

  • Hiroaki Miyamoto

    (Graduate School of International Relations, International University of Japan)

Abstract

This paper studies how well a search and matching model can describe aggregate Japanese labor market dynamics in a full information setting. We develop a discrete- time search and matching model with productivity and separation shocks and use it as a data-generating process for our empirical analysis. Using Bayesian methods, we estimate the model for data on unemployment and vacancy postings in Japan. We Â…nd that the model is successful in matching the volatility in unemployment and vacancies while it does not match the volatility of output and wages. We also Â…nd that both productivity and separation shocks contribute to movements in unemployment and vacancies, but productivity shocks more so.

Suggested Citation

  • Ching-Yang Lin & Hiroaki Miyamoto, 2012. "Estimating a Search and Matching Model of the Aggregate Labor Market in Japan," CIRJE F-Series CIRJE-F-850, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2012cf850
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    References listed on IDEAS

    as
    1. Sungbae An & Frank Schorfheide, 2007. "Bayesian Analysis of DSGE Models—Rejoinder," Econometric Reviews, Taylor & Francis Journals, vol. 26(2-4), pages 211-219.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Estimating a Search and Matching Model of the Aggregate Labor Market in Japan
      by Christian Zimmermann in NEP-DGE blog on 2012-05-05 02:26:06

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    More about this item

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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