This paper analyzes labor market frictions, caused by heterogeneity among traders on the demand side (firms). Vacancy numbers per firm created at once can vary, and this heterogeneity affects the application rate by job seekers. On the aggregate level, theory predicts that vacancy distribution...

1. Research Theme It has been pointed out that the existence or rise in unemployment rate caused by 'mismatch' in labor market is one of the major factors for recent continuous high unemployment rate in our country. Such 'mismatch' has often been regarded as coming from technical problems, which...

This study examines how Japanese consumers’ inflation expectations are formed by the use of micro-level dataset of the prediction error of expected inflation rate. Recently in Japan, the interest is growing in the policies that intend to work on the inflation expectations of consumers and...

This paper documents the secular decline of years of job tenure in Japan based on micro data from two representative government surveys, namely the household-based Employment Status Survey (ESS) and the establishment-based Basic Survey of Wage Structure (BSWS). Workers born in 1970 have...

We examine the period from 1991 to 2002 to document the effects of a changing Japanese labor market on trends in the cost of job change. Evidence is also found of a diminishing specificity in human capital (in firm-size and industry) for job changers in the Japanese labor market.

When the Japanese economy went into recession in the 1990s, the number of employees dismissed by companies increased dramatically while the ratio of disputes over dismissals, in the form of labor action and lawsuits, has been in continuous decline since that time. It is true that overall the...

Using parent-foreign affiliate matched data on Japan from 1995 to 2009, this paper examines the effects of foreign direct investment (FDI) on domestic employment, especially in manufacturing. One of the contributions of this paper is that we utilize the matched data for each country in which...

We use the result from a survey of Japanese firms in manufacturing and services to investigate the choice of wage and employment adjustments when they needed to reduce substantially the total labor cost. Our regression analysis indicates that the large size reduction favors the layoffs of core...

We use an unobserved components model to extract the foreign exchange risk premium from the excess ex post returns of East Asian currency assets over US dollar assets and derive the implied expected future spot rates of East Asian currencies against the US dollar. Empirical results, obtained...

This paper surveys and reexamines Fiscal Theory of Price Level's (FTPL, hereafter) theoretical framework as well as empirical and policy implications. A simple theoretical model, which unifies various models and notations scattered in the literature, is presented and reexamined through changes...