Template-type: ReDIF-Paper 1.0
Author-Name: Ching-Yang Lin
Author-Name-First: Ching-Yang
Author-Name-Last: Lin
Author-Email: clin@iuj.ac.jp
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Author-Name: Hiroaki Miyamoto
Author-Name-First: Hiroaki
Author-Name-Last: Miyamoto
Author-Email: hmiyamot@iuj.ac.jp
Author-Workplace-Name: International University of University
Author-Workplace-Homepage: http://www.iuj.ac.jp/
Title: An Estimated Search and Matching Model of the Japanese Labor Market
Abstract: 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.
Classification-JEL: C11; C51; E24; J64
Length: 33 pages
Creation-Date: 2014-02
Number: EMS_2014_02
File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2014_02.pdf
File-Format: Application/pdf
File-Function: First version, 2014
File-Size: 415KB
Keywords: Search and matching model, Unemployment, Bayesian Estimation, Japanese labor market
Handle: RePEc:iuj:wpaper:EMS_2014_02