TY - JOUR
T1 - Estimating Frisch labor supply elasticity in Japan
AU - Kuroda, Sachiko
AU - Yamamoto, Isamu
PY - 2008/12
Y1 - 2008/12
N2 - Using Japanese data from the 1990s aggregated by prefecture, age group, and sex, we estimate Frisch labor supply elasticity, which has been seldom estimated in Japan. The change in labor supply can be decomposed into two labor-supply behaviors: extensive margin, indicating workers' entry and exit from the labor market; and intensive margin, indicating changes in hours of work in response to a wage change. Our estimates of the Frisch elasticity on the extensive and intensive margins combined are in the range of 0.2 to 0.7 for males, 1.3 to 1.5 for females, and 0.7 to 1.0 for both sexes. Our estimates of the Frisch elasticity on only the intensive margin are in the range of 0.1 to 0.2 for all three categories. These results suggest that extensive margin explains the bulk of labor-supply changes in Japan. As for the changes in the estimates of the Frisch elasticity in Japan from the 1990s, it has been either unchanged or in a declining trend on the extensive and intensive margins combined, either unchanged or in a slight rising trend on only the intensive margin, and in a declining trend on only the extensive margin. J. Japanese Int. Economies 22 (4) (2008) 566-585.
AB - Using Japanese data from the 1990s aggregated by prefecture, age group, and sex, we estimate Frisch labor supply elasticity, which has been seldom estimated in Japan. The change in labor supply can be decomposed into two labor-supply behaviors: extensive margin, indicating workers' entry and exit from the labor market; and intensive margin, indicating changes in hours of work in response to a wage change. Our estimates of the Frisch elasticity on the extensive and intensive margins combined are in the range of 0.2 to 0.7 for males, 1.3 to 1.5 for females, and 0.7 to 1.0 for both sexes. Our estimates of the Frisch elasticity on only the intensive margin are in the range of 0.1 to 0.2 for all three categories. These results suggest that extensive margin explains the bulk of labor-supply changes in Japan. As for the changes in the estimates of the Frisch elasticity in Japan from the 1990s, it has been either unchanged or in a declining trend on the extensive and intensive margins combined, either unchanged or in a slight rising trend on only the intensive margin, and in a declining trend on only the extensive margin. J. Japanese Int. Economies 22 (4) (2008) 566-585.
KW - Extensive margin
KW - Frisch elasticity
KW - Intensive margin
KW - Labor supply
UR - http://www.scopus.com/inward/record.url?scp=56349089472&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=56349089472&partnerID=8YFLogxK
U2 - 10.1016/j.jjie.2008.05.002
DO - 10.1016/j.jjie.2008.05.002
M3 - Article
AN - SCOPUS:56349089472
VL - 22
SP - 566
EP - 585
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
SN - 0889-1583
IS - 4
ER -