In recent times, Japan has experienced a rapid expansion in its service sector, increases in casual and part-time employment and record unemployment. In addition, there has been an associated rise of freeters and NEETs - predominantly young workers with tenuous labour market attachment. While...

Does trade affect the equilibrium rate of unemployment? To theoretically examine this question, we incorporate firm-union bargaining considerations into a model with a booming external sector and a stagnating manufacturing sector. In the model, a sustained improvement in the terms of trade...