Is Labor Market Mismatch a Big Deal in Japan?

IMF Working Papers, September 17, 2013

Source details

Despite a low unemployment rate, a recent shift in the Japanese Beveridge curve indicates increased labor mismatch.
Between April 2000 and April 2013:
- Age mismatch has steadily declined.
- Occupational mismatch and employment-type (full or part-time) mismatch exhibited a countercyclical pattern with a sharp increase during the global financial crisis.
Occupational mismatch accounted for approximtely 20-40 percent of the recent rise in the unemployment rate in Japan.
The magnitude of occupational mismatch in Japan was comparable to that of the U.K. and the U.S.

The paper quantifies age, employment-type, and occupational mismatch in the Japanese labor market following Sahin and others (2013).
Time coverage emphasized: April 2000 to April 2013.
Mismatch dimensions analyzed: age, employment-type (full or part-time), occupational categories.
Context highlighted: behavior of the Beveridge curve and response during the global financial crisis.

Japan’s occupational mismatch contribution to the rise in unemployment (approximtely 20-40 percent) is reported as comparable in magnitude to estimates for:
- the U.K.
- the U.S.
The occupational and employment-type mismatches are countercyclical, with pronounced worsening during the global financial crisis of 2008-2009.

Source: IMF Working Paper “Is Labor Market Mismatch a Big Deal in Japan?” by Ippei Shibata, September 17, 2013.