Agglomeration Effects on Job Matching Efficiency: Evidence from Japan

Yudai Higashi
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Yudai Higashi: Graduate School of Humanities and Social Sciences, Okayama University and Research Institute for Economics and Business Administration, Kobe University, JAPAN

No DP2021-03, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper examines the effect of agglomeration on the regional efficiency of matching of job seekers and vacancies by using Japanese regional panel data. We find that a higher population density improves or at least does not deteriorate regional matching efficiency for most of the sample periods, suggesting that the benefit of agglomeration tends to be significant. However, the effect is significantly negative in 2011 when a serious earthquake and tsunami occurred in Japan, suggesting that the congestion effect is superior to the benefit of agglomeration when labor markets suffer from damages, such as those caused by natural disasters.

Keywords: Job search; Matching function; Agglomeration; Local labor market (search for similar items in EconPapers)
JEL-codes: J64 R11 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2021-01
New Economics Papers: this item is included in nep-geo and nep-ure
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