he Effects of Partial Labor Reforms on the Macroeconomic Outcomes

2015 Fiscal Year Final Research Report

• Project/Area Number: 25780195
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Public finance/Public economy
• Research Institution: International University of Japan
• Principal Investigator: Lin Ching-Yang 国際大学, 国際関係学研究科, 准教授 (70582287)
• Project Period (FY): 2013-04-01 – 2016-03-31
• Keywords: 労働生産性 / 労働改革政策 / 異質性 / サーチ摩擦 / 一般均衡

Outline of Final Research Achievements

This study investigates the quantitative effects of several types of labor reform on the macroeconomic outcomes. I construct a theoretical model and conduct simulations to assess the policy effects. The key findings are as follows: (1) A labor reform that reduces skilled workers' firing cost leads to the largest favorable effects on productivity, output and workers' welfare. (2) A labor reform generates sizable effects when the labor market is strictly regulated; in contrast, the policy effects are negligible when the market is moderately regulated.

This study has been presented in two international conferences and will be presented in the Western Economic Association International Conference in this June in Portland, USA. Afterward, the research paper will be submitted to the international journal this summer.

Free Research Field

macroeconomics