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To Fire or to Hoard? Explaining Japan’s Labor Market Response in the Great Recession, Chad Steinberg, Masato Nakane

The Great Recession pushed Japan’s unemployment rate to historic highs, but the increase has been small by international standards and small relative to the large output shock. This paper explores Japan’s cyclical labor market response to the global financial crisis. Our findings suggest that: (i) employment responsiveness has been historically low but rising over time with the increasing importance of the non-regular workforce; (ii) the labor market response was consistent with historical patterns once we control for the size of the output shock; and (iii) the comparatively lower employment response vis-à-vis other countries can in part be explained by the quick implementation of an employment subsidy program, a more flexible wage system, and a corporate governance structure that places workers rights above shareholders
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Broad Trends during the Great Recession; III. How has Employment Responded to Output in the Past?; 1. Employment Dualities; IV. Was Japan's Employment Response During the Great Recession Extraordinary?; 2. Employment Adjustment Subsidy Program; 1. Dynamic Betas by Industry; 2. Dynamic Betas by Firm Size, Gender, and Age Group; 3. Percent Change in Employment by Industry; 4. Percent Change in Employment by Firms Size, Gender, and Age Group; V. Can a Flexible Wage System Explain Japan's Lower Employment Response to Output?
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (53 p.)
Specific Material Designation
Form Of Item

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