Unemployment and Labor Force Participation in Japan
Makoto Kakinaka Hiroaki Miyamoto
This paper studies a long-run relationship between the labor force participation rate and the unemployment rate in Japan. By using cointegration analysis, we demonstrate that there exists a long-run relationship between the two variables for male workers but not for female workers. Furthermore, using labor force data by age group, we find the added-worker effect for young males and the discouraged worker effect for middle-aged and old male groups.