The Increase in Part-timers and its Effects on the Wage Phillips Curve in Japan

Yasutaka Ogawa
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Yasutaka Ogawa: Keio University, Economics

No 2024-028, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: In this paper, I quantify the effects of the increase in part-timers on the flattening wage Phillips curve in Japan. Specifically, I formulate the New Keynesian DSGE model which explicitly incorporates two different types of labour forces, which are fulltime labour and part-time labour, and their unemployment considering the structural change of the increase in part-timers. I employ estimation with Japan’s data using Bayesian techniques and obtain plausible results for structural and policy parameters. Then I do a counterfactual simulation without the structural change and compare it with baseline estimation. I find that roughly 30% of the wage Phillips curve flattening in Japan has been ascribed to the increase in part-timers.

Keywords: wage Phillips curve; wage growth; unemployment; DSGE models; structural change (search for similar items in EconPapers)
JEL-codes: C51 E24 E31 L16 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2024-12-26
New Economics Papers: this item is included in nep-dge
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Persistent link: https://EconPapers.repec.org/RePEc:keo:dpaper:2024-028

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