The Japanese Labor Market During the COVID- 19 Pandemic
IMF Working Papers, May 13, 2022
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- The Japanese Labor Market During the COVID- 19 Pandemic
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Bibliographic details
- Authors: Shinya Kotera, Jochen M. Schmittmann
- Published: May 13, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400210303.001
Summary
- Investigates labor market dynamics in Japan during the COVID-19 pandemic using macro and micro data.
- Finds the pandemic and containment measures had a large negative impact on employment, labor force participation, earnings, and labor market mobility.
- Notes policy support through furlough schemes partially mitigated the rise in unemployment.
- Identifies industry effects as a crucial driver of differential labor market outcomes across groups.
- Highlights empirical evidence for the need to improve childcare and related support, training and upskilling offerings, teleworking availability, and to address skill mismatches that reduce labor market mobility and resource reallocation.
Key findings
- Women, younger age groups, nonregular workers, self-employed, and low-income workers accounted for a disproportional share of employment in the hardest hit industries.
- Furlough schemes provided partial mitigation against rising unemployment.
- Skill mismatches contributed to reduced labor market mobility and limited resource reallocation.
- Childcare constraints and limited teleworking availability were important factors affecting labor market outcomes.
Policy implications and recommendations
- Improve childcare and related support to enhance labor force participation, especially among affected groups.
- Expand training and upskilling offerings to address skill mismatches and facilitate labor market mobility and resource reallocation.
- Increase teleworking availability to reduce vulnerability of employment in future shocks.
- Maintain or design targeted furlough and income-support schemes to partially offset unemployment spikes during large shocks.
Publication and metadata
- Title: The Japanese Labor Market During the COVID- 19 Pandemic
- Authors: Shinya Kotera, Jochen M. Schmittmann
- Date: May 13, 2022
- Series: IMF Working Papers
- Issue: 089
- Series title: Working Paper No. 2022/089
- Volume: 2022
- Pages: 39
- DOI: https://doi.org/10.5089/9798400210303.001
- Stock No: WPIEA2022089
- ISBN: 9798400210303
- ISSN: 1018-5941
- Subjects: COVID-19, Employment, Gender, Health, Labor, Labor markets, Wages, Women
- Keywords: COVID-19, DML result, Earnings, Employment, employment dynamics, Global, Japan, job stayer, labor market mobility, labor market outcome, Labor Markets, micro data, Unemployment, Wages, Women
IMF Working Paper by Shinya Kotera and Jochen M. Schmittmann (May 13, 2022).
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- Working Paper