2021 Fiscal Year Research-status Report
Empirical Research for the effects by Japanese policy for increasing acceptance of international labor force
| Project/Area Number |
21K01482
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| Research Institution | Nagoya University |
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Principal Investigator |
土井 康裕 名古屋大学, 経済学研究科, 教授 (70508522)
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| Project Period (FY) |
2021-04-01 – 2024-03-31
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| Keywords | spatial GE model / reallocation of workers / high-education workers |
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| Outline of Annual Research Achievements |
In this year 2021 we have developed a spatial general equilibrium model to study the labor market and production implications of international workers in regional economies.
The model features multiple regions, multiple labor groups, multiple occupations, and multiple sectors.
Our model allows to study how the reallocation of workers within and across regions interact to shape the distribution of economic activities and to affect the welfare in each region.
We bring the model to the data for the Japanese economies. In the counterfactual experiment, we quantify and discuss the welfare implications of increasing the number of international high-education workers.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Based on our research approach, we found that the change in real wages differs substantially across regions and across worker groups within a region. We argue that the underlying heterogeneity in sectoral productivity across regions (which is revealed as the patter of industrial specialization) determines the reallocations of workers across occupations and across regions.
There are several remaining future research agenda: for instance, we classify workers, regions, occupations, and sectors in a relatively aggregate manner. This may obscure some key underlying heterogeneities in, for example, regional amenity and productivity, comparative advantage of workers across occupations, and etc. Disaggregating the unit of analysis would provide more insightful and realistic implications.
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| Strategy for Future Research Activity |
It would be worth studying if allowing trade imbalances amplifies or reduces the labor market and production implications in the counterfactual. Furthermore, extending the model to embed the foreign counties (or the rest of the world, at least) will be useful to discuss an implication for the Japanese import and export. Third, foreign employment policy in Japan has been often discussed in the context of low birth rate and aging society. Due to the static nature of our current model, we cannot discuss how demographic changes affect the implications of foreign workers. Developing a dynamic spatial general equilibrium model with demographic changes will provide an important policy implications for the foreign employment policy.
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| Causes of Carryover |
海外での研究活動や調査ができなかったため、多くの予算が繰り越しとなった。また、RAの人件費についても、コロナ禍の影響で実施することができなかった。
2022年度は、コロナの状況にも寄るが、予定している活動を速やかに行うことを前提としている。
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