The wage-mismatch index: A new indicator of labor demand in the job search market

Taiyo Fukai (), Keisuke Kawata (), Mizuki Komura () and Takahiro Toriyabe ()
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Taiyo Fukai: Faculty of Economics, Gakushuin University
Keisuke Kawata: Institute of Social Sciences, University of Tokyo
Mizuki Komura: School of Economics, Kwansei Gakuin University
Takahiro Toriyabe: Graduate School of Economics, Hitotsubashi University

No 296, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: Motivated by persistent labor shortages in developed economies, this study proposes a novel indicator of labor demand, the wage-mismatch index, which captures wage-related mismatches often overlooked by conventional metrics such as vacancy counts or labor market tightness. The index is defined as the share of job postings offering wages acceptable to job seekers. As a case application, we construct an index using administrative data from Japan's public employment service. We further decompose this into its underlying components to identify the sources of change over time. Finally, we demonstrate its empirical relevance by using aggregate data from Tokyo and Osaka, Japan's two largest metropolitan labor markets.

Keywords: Job acceptance rate; Desired wage; Offered wage; Administrative data; Mismatch (search for similar items in EconPapers)
JEL-codes: C81 J31 J63 J64 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2025-07
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