The fading 1990s in Japan: Driving forces behind the unemployment upsurge

Pablo Agnese and Hector Sala

MPRA Paper from University Library of Munich, Germany

Abstract: This paper sheds new light on the causes of the unemployment upsurge in Japan during the “fading 1990s”, an unprecedented period of structural crisis. We estimate a labor market model and identify the main macroeconomic determinants of labor demand and labor supply decisions in last decades. We then conduct dynamic simulations and assess the relative contribution of these determinants to the evolution of unemployment from 1990 to 2002. Beyond the leading role exerted by the decline in productivity growth, we find the active and expansionary measures undertaken by the government had an overall negative effect on the labor market.

Keywords: Japan; unemployment; productivity; macroeconomic policies; chain reaction theory (search for similar items in EconPapers)
JEL-codes: E24 E60 J01 (search for similar items in EconPapers)
Date: 2008-03-19
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Citations: View citations in EconPapers (6)

Published in International Review of Economics and Finance 3.18(2009): pp. 428-439

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Journal Article: The fading 1990s in Japan: Driving forces behind the unemployment upsurge (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:16501

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