Structural unemployment, underemployment, and secular stagnation

Hashimoto, Ken-ichi; Ono, Yoshiyasu; Schlegl, Matthias

Structural unemployment, underemployment, and secular stagnation

Hashimoto, Ken-ichi; Ono, Yoshiyasu; Schlegl, Matthias

Institute of Social and Economic Research Discussion Papers, 2020, 1088, 1-49

アクセス数:233件（2025-07-02 20:28 集計）

固定URL: https://hdl.handle.net/11094/75952

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タイトル	Structural unemployment, underemployment, and secular stagnation
著者	NRID 1000070403219 1000070403219 著者名 Hashimoto, Ken-ichi
	NRID 1000070130763 1000070130763 researchmap permalink read0047247 read0047247 Scopus Author ID 7402959644 7402959644 著者名 Ono, Yoshiyasu
	NRID 1000050844982 1000050844982 著者名 Schlegl, Matthias
キーワード等	demand shortage
	unemployment
	underemployment
	labor market frictions
	secular stagnation
抄録	We introduce a preference for wealth into the standard search and matching model to analyze the labor market when there is persistent demand shortage. We show that, under some conditions, a secular stagnation steady state exists in which the economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct consequence of the lack of aggregate demand. Our findings are as follows. In the absence of demand shortage, the preference for wealth creates a new transmission channel for shocks and policy measures due to induced changes in the real interest rate, in addition to the job creation channel of the standard matching model. Turning to the stagnation equilibrium, the effects of demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and underemployment. In contrast, the effects of wage and cost shocks depend on the degree of aggregate demand shortage, but they can explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total employment gap under stagnation are primarily driven by fluctuations in underemployment instead of structural unemployment. Our analysis helps to understand why the unemployment rate in Japan has been surprisingly low during its lost decades and highlights the need for further policy interventions in support of aggregate demand despite a seemingly decent employment record.
出版者	The Institute of Social and Economic Research, Osaka University
収録物名	Institute of Social and Economic Research Discussion Papers
巻(号)	1088
ページ	1-49
刊行年月	2020-05
言語	英語
ハンドルURL	https://hdl.handle.net/11094/75952
PISSN	0473453X
eISSN	24350982
関連情報 (references)	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2020/DP1088.pdf
アクセス権	metadata only access
カテゴリ	ディスカッション／ワーキング・ペーパー DP/WP
カテゴリ	Institute of Social and Economic Research Discussion Papers

資源タイプ	テクニカルレポート
ローカル資源タイプ	ディスカッション／ワーキング・ペーパー
DCMI資源タイプ	text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2020, 1088, p. 1-49
DC.title	Structural unemployment, underemployment, and secular stagnation
DC.creator	Hashimoto, Ken-ichi
	Ono, Yoshiyasu
	Schlegl, Matthias
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	英語
DC.type' scheme='DCTERMS.DCMIType	text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2020-05
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2020/DP1088.pdf
DC.subject	demand shortage
	unemployment
	underemployment
	labor market frictions
	secular stagnation
DCTERMS.abstract	We introduce a preference for wealth into the standard search and matching model to analyze the labor market when there is persistent demand shortage. We show that, under some conditions, a secular stagnation steady state exists in which the economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct consequence of the lack of aggregate demand. Our findings are as follows. In the absence of demand shortage, the preference for wealth creates a new transmission channel for shocks and policy measures due to induced changes in the real interest rate, in addition to the job creation channel of the standard matching model. Turning to the stagnation equilibrium, the effects of demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and underemployment. In contrast, the effects of wage and cost shocks depend on the degree of aggregate demand shortage, but they can explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total employment gap under stagnation are primarily driven by fluctuations in underemployment instead of structural unemployment. Our analysis helps to understand why the unemployment rate in Japan has been surprisingly low during its lost decades and highlights the need for further policy interventions in support of aggregate demand despite a seemingly decent employment record.
DC.format	75952
citation_title	Structural unemployment, underemployment, and secular stagnation
citation_author	Hashimoto, Ken-ichi
	Ono, Yoshiyasu
	Schlegl, Matthias
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	英語
citation_date	2020-05
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	1088
citation_firstpage	1
citation_lastpage	49
citation_public_url	https://hdl.handle.net/11094/75952
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2020/DP1088.pdf

Structural unemployment, underemployment, and secular stagnation

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