The Effect of Initial Job in Japanese Labor Market

Ayaka Nakamura and Katsuya Takii
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Ayaka Nakamura: Graduate School of Economics, Osaka University

No 24E007, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: We investigate the effect of being a regular employee in a job which a worker takes immediately after graduation (the initial job), on subsequent job status. We construct an assignment model that can be estimated by the marginal treatment effect (MTE) framework; the model suggests that the region- and cohort-level unexpected shocks that influences the demand for full time-worker share is a valid instrument under some assumptions. Estimating the MTE, we find that the treatment effect of the initial job is heterogeneous among individuals: male workers who are less likely to obtain regular employment in the initial job enjoy benefits of stable employment; however, the regular initial job does not increase the probability of subsequent regular employment for male workers who are likely to obtain regular employment in the initial job.

Keywords: Employment stability; Initial labor market condition; MTE; Assignment model (search for similar items in EconPapers)
JEL-codes: J62 (search for similar items in EconPapers)
Pages: 44pages
Date: 2024-11
New Economics Papers: this item is included in nep-lab
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