Pub Date : 2025-06-01Epub Date: 2025-04-05DOI: 10.1016/j.japwor.2025.101308
Akira Fukuda , Isamu Yamamoto
This study provides an ex-ante and ex-post evaluation of the Employment Adjustment Subsidy (EAS) that the Japanese government extended to unprecedented levels during the COVID-19 pandemic. Using unique monthly data from firm-level surveys, we investigate the types of firms that applied for the EAS and the evolution of their subsequent performance. A key contribution of our study is that we provide an ex-post evaluation of the EAS on firm performance for approximately two years during the pandemic. As in previous studies, we confirm that majority of the firms that applied for the EAS were not zombies before the pandemic. However, their subsequent sales were much lower than those of non-applicant firms, even during the economic recovery period. This feature was conspicuous in 2021, specifically for small-scale firms in troubled sectors, unless they received extra support. The results suggest that the initial large-scale subsidy was unsuccessful in preventing the zombification of troubled firms during the pandemic.
{"title":"Ex-ante and ex-post evaluation of zombie firms arising from the EAS program during the COVID-19 pandemic: A study of Japanese SMEs","authors":"Akira Fukuda , Isamu Yamamoto","doi":"10.1016/j.japwor.2025.101308","DOIUrl":"10.1016/j.japwor.2025.101308","url":null,"abstract":"<div><div>This study provides an ex-ante and ex-post evaluation of the Employment Adjustment Subsidy (EAS) that the Japanese government extended to unprecedented levels during the COVID-19 pandemic. Using unique monthly data from firm-level surveys, we investigate the types of firms that applied for the EAS and the evolution of their subsequent performance. A key contribution of our study is that we provide an ex-post evaluation of the EAS on firm performance for approximately two years during the pandemic. As in previous studies, we confirm that majority of the firms that applied for the EAS were not zombies before the pandemic. However, their subsequent sales were much lower than those of non-applicant firms, even during the economic recovery period. This feature was conspicuous in 2021, specifically for small-scale firms in troubled sectors, unless they received extra support. The results suggest that the initial large-scale subsidy was unsuccessful in preventing the zombification of troubled firms during the pandemic.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"74 ","pages":"Article 101308"},"PeriodicalIF":1.3,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143833979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-04-22DOI: 10.1016/j.japwor.2025.101309
Raehyung Lee , Jinki Hong , Duk Hee Lee , Jay Y. Ohm
Does subcontracting with large firms promote the innovation endeavours of small and medium-sized enterprises (SMEs)? This study addresses this question using panel data from 22,528 observations of Korean SMEs across all industries from 2015 to 2019. We tested the hypotheses individually for five sub-industries based on Pavitt’s (1984, 1990) technological trajectory classification. The findings indicate that exclusive subcontracting negatively affects innovation endeavours, specifically in the supplier-dominated, science-based, and assembly/processing industries. By examining SMEs both as a whole and within specific industries, this study provides new evidence on the relationship between exclusivity and innovation, expanding on prior research that focused on data from limited sectors. Specially, the findings have implications for the innovation strategies of firms, industries, and countries such as South Korea, where SMEs heavily rely on transactions with large firms. These findings offer new quantitative evidence for sectoral innovation systems, emphasising different innovation strategies for each industry.
{"title":"Influence of exclusive subcontracting on technological innovation: The case of Korean SMEs","authors":"Raehyung Lee , Jinki Hong , Duk Hee Lee , Jay Y. Ohm","doi":"10.1016/j.japwor.2025.101309","DOIUrl":"10.1016/j.japwor.2025.101309","url":null,"abstract":"<div><div>Does subcontracting with large firms promote the innovation endeavours of small and medium-sized enterprises (SMEs)? This study addresses this question using panel data from 22,528 observations of Korean SMEs across all industries from 2015 to 2019. We tested the hypotheses individually for five sub-industries based on Pavitt’s (1984, 1990) technological trajectory classification. The findings indicate that exclusive subcontracting negatively affects innovation endeavours, specifically in the supplier-dominated, science-based, and assembly/processing industries. By examining SMEs both as a whole and within specific industries, this study provides new evidence on the relationship between exclusivity and innovation, expanding on prior research that focused on data from limited sectors. Specially, the findings have implications for the innovation strategies of firms, industries, and countries such as South Korea, where SMEs heavily rely on transactions with large firms. These findings offer new quantitative evidence for sectoral innovation systems, emphasising different innovation strategies for each industry.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"74 ","pages":"Article 101309"},"PeriodicalIF":1.3,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143873866","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-01Epub Date: 2025-04-30DOI: 10.1016/j.japwor.2025.101310
Daisuke Tsuruta
In this paper, we examine whether small and medium enterprises (SMEs) face severe constraints in adjusting their trade receivables by focusing on the 2016 revision of the Subcontract Act of Japan. Small businesses typically have weaker bargaining power than their customers because they are likely to depend on certain customers. Accordingly, many small businesses face severe constraints in the adjustment of their trade receivables. The Subcontract Act prohibits customer firms from receiving trade credit from small businesses over the long term, and this was enforced more strictly after 2016 following a regulatory revision. This made it easier for small businesses to adjust their trade receivables if their level was considered excessive, serving to enhance the speed of adjustment. We find that trade receivables decreased by an average of 2.1 days following the policy change for the main target firms of the Subcontract Act. Our results also show that small businesses could more rapidly adjust their trade receivables than large firms, both before and after the revision. On this basis, we conclude that while the policy effects on the level of trade receivables are significant, those on the adjustment are not.
{"title":"Does SME policy enhance the adjustment of trade credit? Evidence from a revision of the Subcontract Act in Japan","authors":"Daisuke Tsuruta","doi":"10.1016/j.japwor.2025.101310","DOIUrl":"10.1016/j.japwor.2025.101310","url":null,"abstract":"<div><div>In this paper, we examine whether small and medium enterprises (SMEs) face severe constraints in adjusting their trade receivables by focusing on the 2016 revision of the Subcontract Act of Japan. Small businesses typically have weaker bargaining power than their customers because they are likely to depend on certain customers. Accordingly, many small businesses face severe constraints in the adjustment of their trade receivables. The Subcontract Act prohibits customer firms from receiving trade credit from small businesses over the long term, and this was enforced more strictly after 2016 following a regulatory revision. This made it easier for small businesses to adjust their trade receivables if their level was considered excessive, serving to enhance the speed of adjustment. We find that trade receivables decreased by an average of 2.1 days following the policy change for the main target firms of the Subcontract Act. Our results also show that small businesses could more rapidly adjust their trade receivables than large firms, both before and after the revision. On this basis, we conclude that while the policy effects on the level of trade receivables are significant, those on the adjustment are not.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"74 ","pages":"Article 101310"},"PeriodicalIF":1.3,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143894921","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-12-27DOI: 10.1016/j.japwor.2024.101296
Taro Ohno , Tomotsugu Imahori , Daizo Kojima
Deduction system is an important element for fulfilling the purposes of the personal income taxation. Designing an ideal system of deductions requires understanding the burden reduction effect and its impact on income redistribution due to taxes. In this study, we use Japanese household microdata (1994–2019) to empirically evaluate the burden reduction and redistributive effects of income-increasing deductions on personal income tax. In addition, we separate the changes in the redistribution effect of the deductions into system and non-system reforms. The higher the income bracket, the more effective the deductions in reducing the tax burden due to the impact of the income-increasing part of the deductions. The burden reduction effect of deductions is found to have declined over the sample period of 25 years, mainly due to the impact of system reforms. Moreover, Unlike the other parts that enhance the redistributive effects, the income-increasing part of deductions reduces the redistributive effects.
{"title":"Effect of income-increasing deduction in personal income tax on the burden reduction and income redistribution: Evidence from Japan","authors":"Taro Ohno , Tomotsugu Imahori , Daizo Kojima","doi":"10.1016/j.japwor.2024.101296","DOIUrl":"10.1016/j.japwor.2024.101296","url":null,"abstract":"<div><div>Deduction system is an important element for fulfilling the purposes of the personal income taxation. Designing an ideal system of deductions requires understanding the burden reduction effect and its impact on income redistribution due to taxes. In this study, we use Japanese household microdata (1994–2019) to empirically evaluate the burden reduction and redistributive effects of income-increasing deductions on personal income tax. In addition, we separate the changes in the redistribution effect of the deductions into system and non-system reforms. The higher the income bracket, the more effective the deductions in reducing the tax burden due to the impact of the income-increasing part of the deductions. The burden reduction effect of deductions is found to have declined over the sample period of 25 years, mainly due to the impact of system reforms. Moreover, Unlike the other parts that enhance the redistributive effects, the income-increasing part of deductions reduces the redistributive effects.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"73 ","pages":"Article 101296"},"PeriodicalIF":1.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143150363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-12-08DOI: 10.1016/j.japwor.2024.101294
Kenta Funaoka , Zhihua Yao
This study analyzes 94 firms that were listed on the JASDAQ between 2015 and 2021, with a specific focus on identifying the determinants of underpricing in family firms during their initial public offering (IPO). In Japan, over 90 % of enterprises are family-owned, with even half of the publicly listed companies falling into this category. The findings revealed that, ceteris paribus, firms with founding CEOs experienced less underpricing at the time of going public compared to those without. This difference was more significant in companies with higher management ownership and a higher ratio of external directors. These results emphasize the importance of strong governance structures in reducing underpricing for family firms during their IPOs.
{"title":"Determinants of family firm IPO underpricing: Evidence from Japan","authors":"Kenta Funaoka , Zhihua Yao","doi":"10.1016/j.japwor.2024.101294","DOIUrl":"10.1016/j.japwor.2024.101294","url":null,"abstract":"<div><div>This study analyzes 94 firms that were listed on the JASDAQ between 2015 and 2021, with a specific focus on identifying the determinants of underpricing in family firms during their initial public offering (IPO). In Japan, over 90 % of enterprises are family-owned, with even half of the publicly listed companies falling into this category. The findings revealed that, ceteris paribus, firms with founding CEOs experienced less underpricing at the time of going public compared to those without. This difference was more significant in companies with higher management ownership and a higher ratio of external directors. These results emphasize the importance of strong governance structures in reducing underpricing for family firms during their IPOs.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"73 ","pages":"Article 101294"},"PeriodicalIF":1.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143150406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-12-11DOI: 10.1016/j.japwor.2024.101293
Yoshihiko Hogen, Ryoichi Okuma
This paper uses a learning model to jointly estimate long-term inflation expectations and the degree of anchoring in Japan since the 1960s. We find that in the 1970s, Japan had higher long-term inflation expectations than the U.S. during the first oil shock, but much lower inflation expectations after the second oil shock. This contrast between Japan and the U.S. is consistent with many studies that attribute the differences in the inflation dynamics between Japan and the U.S. to the monetary policy stance in Japan during the 1970s and early 1980s. Long-term inflation expectations fell to around 2 percent in the late 1980s and remained anchored until the mid-1990s. They fell below 2 percent in the late 1990s, resulting in a low degree of anchoring until the early 2010s. Since early 2013, inflation expectations have risen but are not yet been anchored to the target. Further VAR analysis suggests that declining markups could be a primary source for hindering the anchoring of inflation expectations in Japan.
{"title":"The anchoring of inflation expectations in Japan: A learning-approach perspective","authors":"Yoshihiko Hogen, Ryoichi Okuma","doi":"10.1016/j.japwor.2024.101293","DOIUrl":"10.1016/j.japwor.2024.101293","url":null,"abstract":"<div><div>This paper uses a learning model to jointly estimate long-term inflation expectations and the degree of anchoring in Japan since the 1960s. We find that in the 1970s, Japan had higher long-term inflation expectations than the U.S. during the first oil shock, but much lower inflation expectations after the second oil shock. This contrast between Japan and the U.S. is consistent with many studies that attribute the differences in the inflation dynamics between Japan and the U.S. to the monetary policy stance in Japan during the 1970s and early 1980s. Long-term inflation expectations fell to around 2 percent in the late 1980s and remained anchored until the mid-1990s. They fell below 2 percent in the late 1990s, resulting in a low degree of anchoring until the early 2010s. Since early 2013, inflation expectations have risen but are not yet been anchored to the target. Further VAR analysis suggests that declining markups could be a primary source for hindering the anchoring of inflation expectations in Japan.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"73 ","pages":"Article 101293"},"PeriodicalIF":1.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143150364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2025-01-02DOI: 10.1016/j.japwor.2024.101295
Tomohide Mineyama , Kiichi Tokuoka
This study examines how inflation expectations affect precautionary wealth by focusing on the period of zero or low-interest rates in Japan and using Japanese household survey data during this period. The key finding of this paper is that experienced inflation as a proxy for inflation expectations has a positive impact on the target ratio of precautionary wealth to permanent income. This is consistent with the prediction of the buffer stock (Carroll, 1997) that given the nominal interest rate (as has been observed in Japan), higher inflation expectations raise the target ratio when households expect higher inflation to translate into their nominal income in a limited way. This study also confirms that actual liquid wealth gradually converges to the target level of precautionary wealth over the years, which is consistent with the implications of the buffer stock model.
{"title":"Investigating how inflation expectations affect precautionary wealth","authors":"Tomohide Mineyama , Kiichi Tokuoka","doi":"10.1016/j.japwor.2024.101295","DOIUrl":"10.1016/j.japwor.2024.101295","url":null,"abstract":"<div><div>This study examines how inflation expectations affect precautionary wealth by focusing on the period of zero or low-interest rates in Japan and using Japanese household survey data during this period. The key finding of this paper is that experienced inflation as a proxy for inflation expectations has a positive impact on the target ratio of precautionary wealth to permanent income. This is consistent with the prediction of the buffer stock (Carroll, 1997) that given the nominal interest rate (as has been observed in Japan), higher inflation expectations raise the target ratio when households expect higher inflation to translate into their nominal income in a limited way. This study also confirms that actual liquid wealth gradually converges to the target level of precautionary wealth over the years, which is consistent with the implications of the buffer stock model.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"73 ","pages":"Article 101295"},"PeriodicalIF":1.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143150365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2025-02-06DOI: 10.1016/j.japwor.2025.101298
Naoto Mikawa
After the 2011 Great East Japan Earthquake, seismic activity in Japan changed drastically, affecting people’s response to earthquakes even outside the affected area. This change may be heterogeneous depending on where they live, especially if the area is prone to seismic hazards. To measure seismic hazards, the nature of the ground on which a building stands was used as a source of people’s assessment of disaster. Using real estate transaction data and the hedonic approach, this study investigates the heterogeneous impact of the Great East Japan Earthquake on the real estate market in undamaged areas. The analysis of ground classification revealed that the Great East Japan Earthquake led to about 3 % reduction in both land prices and housing prices in the lowland areas in the Tokyo Special Zone, where ground was soft and experienced stronger shaking compared with other areas. The reduction lasted for 5 years before recovering to the pre-disaster level. However, the 2016 Kumamoto Earthquake did not impact land prices in the Tokyo Special Zone.
{"title":"Impact of the 2011 earthquake on the real estate market in Tokyo","authors":"Naoto Mikawa","doi":"10.1016/j.japwor.2025.101298","DOIUrl":"10.1016/j.japwor.2025.101298","url":null,"abstract":"<div><div>After the 2011 Great East Japan Earthquake, seismic activity in Japan changed drastically, affecting people’s response to earthquakes even outside the affected area. This change may be heterogeneous depending on where they live, especially if the area is prone to seismic hazards. To measure seismic hazards, the nature of the ground on which a building stands was used as a source of people’s assessment of disaster. Using real estate transaction data and the hedonic approach, this study investigates the heterogeneous impact of the Great East Japan Earthquake on the real estate market in undamaged areas. The analysis of ground classification revealed that the Great East Japan Earthquake led to about 3 % reduction in both land prices and housing prices in the lowland areas in the Tokyo Special Zone, where ground was soft and experienced stronger shaking compared with other areas. The reduction lasted for 5 years before recovering to the pre-disaster level. However, the 2016 Kumamoto Earthquake did not impact land prices in the Tokyo Special Zone.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"73 ","pages":"Article 101298"},"PeriodicalIF":1.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143420646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-01Epub Date: 2024-10-10DOI: 10.1016/j.japwor.2024.101281
Yamaguchi Akira
This study investigates the causal effect of news shock of openings or expansions of large-scale semiconductor plants in Japan on local labor market, especially measured by new job opening ratio, using DiD (Difference-in-Difference) applied to prefecture-level data. The results shows news shock of large-scale openings or expansion of semiconductor plants increase new job opening ratio by 0.05 - 0.08pt significantly. To address the endogeneity problems arising from firms’ site selection, I matched control group consist of prefectures where news about the openings or expansion of large semiconductor plants were announced but the amounts of investment were relatively small compared to the treatment group and run DiD analysis, and finally obtained the similar robust results. Furthermore, it has been recently pointed out in econometrics that the heterogeneity of treatment effects in a TWFE (Two Way Fixed Effect or Staggered DiD) analysis in which the timings of treatments differ, can lead to biased estimator. The similar robust results were also obtained in the analysis using CS (Callaway and Sant’Anna) DiD, a type of DiD method that overcomes this bias problem. This paper is in the literature which analyzes the impact of large-scale plant openings (million dollar plant openings) on the local labor market, and contributes to the accumulation of knowledge in this field, which is surprisingly scarce in Japan.
本研究利用 DiD(差分法)对都道府县数据进行分析,研究了日本大规模半导体工厂开工或扩建的新闻冲击对当地劳动力市场的因果效应,尤其是以新职位空缺率为衡量指标。结果表明,半导体工厂大规模开工或扩建的新闻冲击会显著增加新职位空缺率 0.05 - 0.08pt。为了解决企业选址带来的内生性问题,笔者将公布了大型半导体工厂开工或扩建消息但投资额相对较小的都道府县与处理组进行匹配,并进行 DiD 分析,最终得到了类似的稳健结果。此外,计量经济学最近指出,在处理时间不同的 TWFE(双向固定效应或交错 DiD)分析中,处理效应的异质性会导致估计值的偏差。使用 CS(Callaway 和 Sant'Anna)DiD 方法进行分析也得到了类似的稳健结果,CS DiD 是一种能克服这种偏差问题的 DiD 方法。本文属于分析大规模工厂开业(百万美元工厂开业)对当地劳动力市场影响的文献,有助于积累这一领域的知识。
{"title":"The impact of news shock of the openings or expansions of large-scale semiconductor plants on local labour market in Japan","authors":"Yamaguchi Akira","doi":"10.1016/j.japwor.2024.101281","DOIUrl":"10.1016/j.japwor.2024.101281","url":null,"abstract":"<div><div>This study investigates the causal effect of news shock of openings or expansions of large-scale semiconductor plants in Japan on local labor market, especially measured by new job opening ratio, using DiD (Difference-in-Difference) applied to prefecture-level data. The results shows news shock of large-scale openings or expansion of semiconductor plants increase new job opening ratio by 0.05 - 0.08pt significantly. To address the endogeneity problems arising from firms’ site selection, I matched control group consist of prefectures where news about the openings or expansion of large semiconductor plants were announced but the amounts of investment were relatively small compared to the treatment group and run DiD analysis, and finally obtained the similar robust results. Furthermore, it has been recently pointed out in econometrics that the heterogeneity of treatment effects in a TWFE (Two Way Fixed Effect or Staggered DiD) analysis in which the timings of treatments differ, can lead to biased estimator. The similar robust results were also obtained in the analysis using CS (Callaway and Sant’Anna) DiD, a type of DiD method that overcomes this bias problem. This paper is in the literature which analyzes the impact of large-scale plant openings (million dollar plant openings) on the local labor market, and contributes to the accumulation of knowledge in this field, which is surprisingly scarce in Japan.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"72 ","pages":"Article 101281"},"PeriodicalIF":1.3,"publicationDate":"2024-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142437674","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the endogeneity of a worker’s acceptable level of job mismatch and its impact on worker performance. First, we construct a theoretical model that depicts the tendency of a potential worker to take a job offer if the firm is “attractive” for some reason, even when he or she knows that their personality does not align with the firm’s characteristics. According to this model, a strong tendency for this behavior yields a positive relationship between a worker’s acceptable mismatch level and the firm’s attractive characteristics. Given the positive relationship, an instrumental variable estimation confirms that higher mismatch significantly lowers worker performance. Since “attractive” firms tend to be generally large firms with a major influence on the economy, the lowered performance due to these mismatches can hinder economic strength and hamper national growth. Resolving this issue may avoid further losses.
{"title":"Endogenous decisions on acceptable worker-job mismatch level and the impact on workers’ performance","authors":"Izumi Yokoyama , Takuya Obara , Arisa Shichijo Kiyomoto , Kaichi Kusada , Kazuma Edamura , Tomohiko Inui","doi":"10.1016/j.japwor.2024.101283","DOIUrl":"10.1016/j.japwor.2024.101283","url":null,"abstract":"<div><div>This study examines the endogeneity of a worker’s acceptable level of job mismatch and its impact on worker performance. First, we construct a theoretical model that depicts the tendency of a potential worker to take a job offer if the firm is “attractive” for some reason, even when he or she knows that their personality does not align with the firm’s characteristics. According to this model, a strong tendency for this behavior yields a positive relationship between a worker’s acceptable mismatch level and the firm’s attractive characteristics. Given the positive relationship, an instrumental variable estimation confirms that higher mismatch significantly lowers worker performance. Since “attractive” firms tend to be generally large firms with a major influence on the economy, the lowered performance due to these mismatches can hinder economic strength and hamper national growth. Resolving this issue may avoid further losses.</div></div>","PeriodicalId":46744,"journal":{"name":"Japan and the World Economy","volume":"72 ","pages":"Article 101283"},"PeriodicalIF":1.3,"publicationDate":"2024-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142594116","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}