Gross worker flows and unemployment dynamics in Japan |
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Authors: | Ching-Yang Lin Hiroaki Miyamoto |
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Institution: | Graduate School of International Relations, International University of Japan, 777 Kokusai-cho, Minami Uonuma-shi, Niigata 949-7277, Japan |
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Abstract: | This paper studies the dynamics of worker flows in Japan between 1980 and 2009. We construct gross worker flows data using the monthly Labor Force Survey. Our data enables us to examine the size and cyclical patterns of the flows and transition rates between employment, unemployment, and not being-in-the labor force. We find that the cyclical pattern of worker flows is similar to that found in other countries; however, worker flows in Japan are generally smaller than those in the US and European countries. We also decompose changes in unemployment into contributions from unemployment inflow and outflow rates. We find that both inflow and outflow rates significantly affect variations in unemployment. |
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