Heterogeneous Worker Flows and Japan's Labor Market

Abstract

This study divides workers into regular, non-regular, and self-employed and other workers, and investigates the role of the flows of these different types of workers on Japan's labor market stocks using a counterfactual simulation. I find that the job finding rate for non-regular jobs and the participation margin are relatively important for the evolution of Japan's unemployment rate. Further, the transitions between regular and non-regular works are important for the dynamics of Japan's non-regular worker ratio.