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Extensive vs. Intensive Margin in Japan

Makoto Kakinaka and Hiroaki Miyamoto

No EMS_2012_14, Working Papers from Research Institute, International University of Japan

Abstract: This paper studies the role of extensive and intensive margins of labor adjustment overbusiness cycle in Japan. We find that the intensive margin accounts for much of total hours worked variation, and its contribution to the fluctuation of total hours worked is about 77%. This result is in sharp contrast with those in the U.S. and European countries where the extensive margin mainly accounts for the overall variability in total hours worked. The implication of a recent rise in non-regular employment for firms' labor adjustment behavior is also discussed.

Keywords: intensive and extensive margins; labor adjustment; Japanese labor market (search for similar items in EconPapers)
JEL-codes: C10 E32 J23 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2012-09
New Economics Papers: this item is included in nep-bec, nep-int and nep-lab
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