Life-cycle search, match quality and Japan’s labor market

Esteban‐Pretel, Julen; Fujimoto, Junichi

doi:10.1016/j.jjie.2012.06.003

Cited by 16 publications

(6 citation statements)

References 26 publications

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“…We choose parameter values following previous studies of the Japanese and Korean labor markets. In particular, Chang, Nam, and Rhee (2004) and Esteban-Pretel and Fujimoto (2012) calibrate their own job search models for the Japanese and Korean labor markets, respectively. The finalized parameter values of our calibration are summarized in Table 6.…”

Section: Parametrizationmentioning

confidence: 99%

Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA

Hong

2016

Asian Economic Papers

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We study the welfare implications of a bilateral free trade agreement (FTA). The model is based on the recent trade literature that considers search and matching frictions in the labor market. We extend the model by incorporating country-level heterogeneity in terms of production technology, population, and productivity endowment. By calibrating the model to Japanese and Korean data in order to assess the expected outcome of the potential Korea–Japan FTA, we find that when the two countries have the same population size, Japan receives greater benefits from the FTA because its relatively more capital-intensive production allows for quicker output adjustment upon trade liberalization. When we take into account that Japan's population is 2.5 times that of Korea, however, the results show that Korea enjoys a greater surplus because of the market size effect.

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Section: Parametrizationmentioning

confidence: 99%

Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA

Hong

2016

Asian Economic Papers

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“…We incorporate the convex vacancy posting cost since it is known that the curvature of the vacancy posting cost affects the quantitative property of the search and matching model (Fujita and Ramey, 2007;Yahiv, 2006). Incorporating a persistent shock to the separation rate is motivated by the fact that the unemployment inflow rate significantly contributes the unemployment dynamics in Japan (Miyamoto, 2011; Lin and Miyamoto, 2012) 4 . Be- 1 In the literature, many solutions have been proposed to solve this problem.…”

Section: Introductionmentioning

confidence: 99%

“…3 As Lubik (2009) mentioned, calibrating the search and matching model tends to be problematic since some of the model parameters, such as the flow value of unemployment and the worker's bargaining power, are difficult to pin down. 4 Recent empirical studies demonstrate that both unemployment inflow and outflow rates significantly contribute the unemployment dynamics in Japan. Miyamoto (2011) and Lin and Miyamoto (2012) examine the relative importance of inflow and outflow rates for fluctuations in unemployment, and find side these two extensions, we also introduce a markup shock into our model, since recent studies find that markup shocks largely accounts for the labor market dynamics.…”

Section: Introductionmentioning

confidence: 99%

An estimated search and matching model of the Japanese labor market

Lin

Miyamoto

2014

Journal of the Japanese and International Economies

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This paper studies how well a simple 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 a convex vacancy posting cost and three shocks: productivity, separation, and markup shocks. We use the model as a data-generating process for our empirical analysis and estimate it by using Bayesian methods. The model is successful in replicating the behavior of unemployment and vacancies in Japan. However, we also find that the success of the model relies on shock processes that are not empirically plausible.

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“…In calibrating the value of leisure, Esteban‐Pretel and Fujimoto () take a similar approach for Japan, where the replacement rate was around 61–63% during their sample period.…”

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confidence: 99%

The Cyclical Properties of Unemployment and Vacancies in Taiwan

Kashiwagi

2015

Pacific Economic Review

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This paper examines the quantitative performance of the standard search and matching model in explaining the cyclical behaviour of Taiwan's labour market. Although the model accounts well for the data in some dimensions, simulated volatility is counterfactually very low, as pointed out in Shimer (2005) for the US labour market. Nevertheless, calibrated to Taiwan's data, the model explains a higher proportion of the observed volatility than the Shimer (2005) results, due to a higher parameter value for leisure; if an extremely high value is assumed, the model explains substantially better, but still partially, the volatility in Taiwan.

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Life-cycle search, match quality and Japan’s labor market

Cited by 16 publications

References 26 publications

Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA

Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA

An estimated search and matching model of the Japanese labor market

The Cyclical Properties of Unemployment and Vacancies in Taiwan

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