Is Labor Market Mismatch a Big Deal in Japan?

Abstract

Despite its low unemployment rate, the recent shift in the Japanese Beveridge curveindicates increased labor mismatch. This paper quantifies the age, employment-type (fullor part-time), and occupational mismatch in the Japanese labor market following Sahinand others (2013). Between April 2000 and April 2013, the age mismatch has steadilydeclined while the occupational and employmenttype mismatch has shown acountercyclical pattern, showing a sharp increase during the global financial crisis.Occupational mismatch accounted for approximtely 20-40 percent of the recent rise in theunemployment rate in Japan. The magnitude was comparable to that of the U.K. and theU.S.

Keywords: mismatch, vacancies, unemployment, Japanese labor market, unemployed, unemployment rate, recession, unemployed workers, unemployment rates, unemployment ratio, beveridge, beveridge curve, labor demand, unemployed person, job mobility, low unemployment, unemployed persons, public employment, employment security, employment protection, low unemployment rate, labor supply, self-employment, high unemployment, average unemployment rate, rising unemployment, unemployment figure, unemployed people, high unemployment rates, structural unemployment, job search, employment subsidy, aggregate unemployment rate, lifetime employment, labor force, employment securities, labor law, employment turnover, emp

JEL Classification: E24, J23, J63, J64