FISCAL POLICY CHANGES AND LABOR MARKET DYNAMICS IN JAPAN’S LOST DECADE

2021 ◽  
pp. 1-40 ◽  
Author(s):  
Julen Esteban-Pretel ◽  
Xiangcai Meng ◽  
Ryuichi Tanaka
Keyword(s):  
Labor Market ◽  
Fiscal Policy ◽  
Unemployment Rate ◽  
Japanese Economy ◽  
Government Sector ◽  
Labor Market Dynamics ◽  
Lost Decade ◽  
The Government ◽  
Market Variables ◽  
The Impact

Japan’s so-called Lost Decade of the 1990s presents a unique case study of an economy with a recent severe and prolonged recession, with large changes in the labor market and fiscal policy as the main policy available to the government. Japanese unemployment rate surged from 2.1% in 1991 to 5.4% in 2002. Meanwhile, the Japanese economy experienced a rise in government expenditures, while taxes remained fairly stable. This paper quantitatively evaluates the impact of these changes in fiscal policies on labor market variables, in particular the unemployment rate, during the 1990s. We build, calibrate, and simulate a dynamic general equilibrium model with search frictions in the labor market, a productive government sector, heterogenous government spendings, and different categories of taxes. Our model is able to reproduce the paths of the main labor market variables, and the counterfactual experiments show that the changes that took place in the different spending components affected the unemployment rate heterogeneously, although overall they kept unemployment lower than it could have been. We also find that had the government also implemented countercyclical tax policies, unemployment would not have risen as much as it did by 2002.

scholarly journals The Unemployment Rate Amid the COVID-19 Pandemic: Propose the Best Practices Policy to Maintain Labor Market Stability

2021 ◽  
Vol 25 (1) ◽  
pp. 48
Author(s):  
Nazaruddin Malik ◽  
Muhammad Sri Wahyudi Suliswanto ◽  
Mochamad Rofik
Keyword(s):  
Labor Market ◽  
Granger Causality ◽  
Unemployment Rate ◽  
Aggregate Demand ◽  
Causality Test ◽  
Demand And Supply ◽  
Causality Tests ◽  
The Government ◽  
Labor System ◽  
The Impact

This study analyzes the impact of the shocks caused by the COVID-19 pandemic on the labor market. The research is vital for expanding the literature about maintaining the unemployment rate amid crisis, ultimately reducing unnecessary social costs. The quantitative approach in this study uses a Granger causality test to understand the effect of the shock caused by the COVID-19 pandemic on unemployment. Meanwhile, the qualitative approach in this study uses literature related to economic growth, crisis management, and unemployment. Granger causality tests show that economic slowdown hurts the unemployment rate. Based on discussion and synthesis from works of literature, this paper recommends some of the policies to maintain growth and prevent a more severe collapse in the labor market; the government needs to sustain aggregate demand and supply. Also, ensure the supply chain runs well amid various restrictions. Besides, this paper also proposes that the government maximizes alternative budget resources. Meanwhile, strengthening the labor system and developing health and food security industries must be a priority policy amid-post the pandemic.

scholarly journals Institutional determinants of regional diversity of labor market in Poland

Equilibrium ◽  
2015 ◽  
Vol 10 (1) ◽  
pp. 129
Author(s):  
Beata Woźniak-Jęchorek
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Gender Gap ◽  
Institutional Perspective ◽  
Regional Diversity ◽  
Institutional Determinants ◽  
The Difference ◽  
Employment Rates ◽  
And Gender ◽  
The Impact

The article focuses on regional diversity of the Polish Labor Market from institutional perspective. The Polish Labor Market is geographically diverse in terms of unemployment and employment rates, and also in terms of economic development. At the end of 2013 the difference between the lowest and the highest unemployment rate in the Polish regions was 12.1% (Wielkopolska located in the West Poland has unemployment rate of 9.6% and Warmia - Mazury in the East has unemployment of 21.7%). The question arises whether this difference comes from the structural or institutional sources. The paper describe the character of Polish Labor Market, whereas in the second part, it traces the impact of institutional variables such as real wage, Kaitz index and Gender gap on the regional unemployment rate in 2002–2012 in Poland.

scholarly journals The Requirement of Records Management Practices for Institutional Audits

2018 ◽  
Vol 7 (3.7) ◽  
pp. 228
Author(s):  
Nik Nurul Emyliana Nik Ramlee ◽  
Saiful Farik Mat Yatin ◽  
Mastura Md Zali ◽  
Nurul Aiqa Mohd Zain ◽  
Amzari Abu Bakar ◽  
...  
Keyword(s):  
Management Practices ◽  
Good Governance ◽  
White Collar Crime ◽  
Risk Mitigation ◽  
Management Practice ◽  
Records Management ◽  
Government Sector ◽  
The Government ◽  
Relationship Of ◽  
The Impact

Currently, the issues of corruption or white-collar crime rise in government sector and this issue raised during the audit checking. The organization itself do not take the initiative and follow the policy and standard assigned by the government when manage the records in their organization with the requirement of records management practices. This study also emphasizes the role of records management in conducting the risk mitigation in governance regarding the auditing process, the relationship of the records management and good governance and to analyse the general report of one organization in Malaysia which related with the audit department. With this study, hopefully the good governance and accountability could be achieved and the crime rate could be minimized as well as no litigation occur during the auditing process if the records management practices plays their roles. This study is to investigate the impact of the implementation of good records management practice in exercising good governance and to ease up the auditing process.  

scholarly journals Impact of the Domestic Labor Market on Sustainability of Agriculture in Oman

2019 ◽  
Vol 23 ◽  
pp. 24
Author(s):  
Hemesiri Bandara Kotagama ◽  
Hamam Al-Farsi
Keyword(s):  
Land Use ◽  
Labor Market ◽  
Food Security ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Land Use Intensity ◽  
Farm Production ◽  
Government Sector ◽  
Long Run ◽  
The Impact

Undistorted factor markets are a perquisite for efficient allocation of resources and growth in production. In Oman by 2013, only 16% of households have reported agriculture as the main occupation and 53% have reported nonagricultural government employment as the main occupation. This situation is hypothesized to be related to the labor market; where government legislated higher remuneration in the nonagricultural government sector vis-a-vis agricultural sector, influences Omani farmers to move to nonagricultural employment, causing reduced cultivated area and farm production. The study uses operations research methods to quantify the impact of labor market policies on agricultural employment, farm gross income and land use intensity (proxy for farm production and food security). It is found that the shift of Omani labor from agriculture is influenced by higher wages in the nonagricultural sectors. The agricultural land use intensity is thereby decreased. The policy of allowing hiring of expatriate labor is beneficial in overcoming labor scarcity. However, in the long-run both farm productivity need to improve to be competitive with legislated income receivable from nonagricultural employment and ideally labor markets need to operate freely, to enhance food security and assure employment of Omani labor in agriculture.

scholarly journals From He-Cession to She-Stimulus? The labor market impact of fiscal policy across gender

SERIEs ◽  
2021 ◽  
Author(s):  
Alica Ida Bonk ◽  
Laure Simon
Keyword(s):  
Labor Market ◽  
Fiscal Policy ◽  
Public Expenditure ◽  
Market Outcomes ◽  
Wage Bill ◽  
Level Data ◽  
Policy Shocks ◽  
Micro Level ◽  
The Government ◽  
Investment Spending

AbstractMen, especially those that are young and less educated, typically bear the brunt of recessions because of the stronger cyclicality of their employment and wages relative to women’s. We study the extent to which fiscal policy may offset or worsen these asymmetric effects across gender. Using micro-level data for the U.S. from the Current Population Survey, we find that the effects of fiscal policy shocks on labor market outcomes depend on the type of public expenditure. Women benefit most from increases in the government wage bill, while men are the main beneficiaries of higher investment spending. Our analysis further reveals that the fiscal component most efficient at closing gender gaps is least suitable for offsetting inequitable business cycle effects across other socioeconomic dimensions.

scholarly journals COVID-19 Pandemic Uncertainty Shock Impact on Macroeconomic Stability in Ethiopia

2020 ◽  
Vol 11 (2) ◽  
pp. 132
Author(s):  
Habtamu Girma DEMIESSIE
Keyword(s):  
Fiscal Policy ◽  
Aggregate Demand ◽  
Spillover Effects ◽  
Food Prices ◽  
Shock Effect ◽  
Food Transport ◽  
The Government ◽  
The Impact ◽  
Macroeconomic Stability

This study investigated the impact of COVID-19 pandemic uncertainty shock on the macroeconomic stability in Ethiopia in the short run period. The World Pandemic Uncertainty Index (WPUI) was used a proxy variable to measure COVID-19 Uncertainty shock effect. The pandemic effect on core macroeconomic variables like investment, employment, prices (both food & non-food prices), import, export and fiscal policy indicators was estimated and forecasted using Dynamic Stochastic General Equilibrium (DSGE) Model. The role of fiscal policy in mitigating the shock effect of coronavirus pandemic on macroeconomic stability is also investigated. The finding of the study reveals that the COVID-19 impact lasts at least three years to shake the economy of Ethiopia. Given that the Ethiopian economy heavily relies on import to supply the bulk of its consumption and investment goods, COVID-19 uncertainty effect starts as supply chain shock, whose effect transmitted into the domestic economy via international trade channel. The pandemic uncertainty shock effect is also expected to quickly transcend to destabilize the economy via aggregate demand, food & non-food prices, investment, employment and export shocks. The overall impact of COVID-19 pandemic uncertainty shock is interpreted into the economy by resulting under consumption at least in the next three years since 2020. Therefore, the government is expected to enact incentives/policy directions which can boost business confidence. A managed expansionary fiscal policy is found key to promote investment, employment and to stabilize food & non-food prices. A particular role of fiscal policy was identified to stabilizing food, transport and communication prices. The potency of fiscal policies in stabilizing food, transport and communication prices go in line with the prevailing reality in Ethiopia where government has strong hands to control those markets directly and/or indirectly. This suggests market failure featuring COVID-19 time, calling for managed interventions of governments to promote market stabilities. More importantly, price stabilization policies of the government can have spillover effects in boosting aggregate demand by spurring investments (and widening employment opportunities) in transport/logistics, hotel & restaurant, culture & tourism and export sectors in particular.

scholarly journals Fiscal Policy Shocks and the Dynamics of Asset Prices in Turkey

2015 ◽  
Author(s):  
Evrim Tören ◽  
Mehmet Balcılar
Keyword(s):  
Fiscal Policy ◽  
Stock Prices ◽  
Asset Prices ◽  
Housing Prices ◽  
Banking System ◽  
Asset Markets ◽  
Important Relationship ◽  
Policy Shocks ◽  
The Government ◽  
The Impact

Asset markets and the asset prices affect financial institutions, consumers, producers and policy makers while they are making decisions. There is an important relationship not only between the financial market and banking system but also between the housing market and the credit market. Therefore, the study analyzes the impact of fiscal policy on asset prices by using beyasian vector autoregressive models. The sample data has been gathered from the Central Bank of the Republic of Turkey. The aim is to demonstrate the effects of fiscal policy shocks on stock prices and housing prices. The data covers the period between 1988:Q1 and 2014:Q2. Overall, the results confirm that the spending shocks coming from fiscal policy have a greater influence on the stock prices. In addition, the government revenue shocks are more influential on the house prices compared to the stock prices in Turkey.

scholarly journals Sustaining employment through administrative management experiential learning in an open distance learning institution

2016 ◽  
Vol 14 (2) ◽  
pp. 385-392
Author(s):  
Tshilidzi Eric Nenzhelele
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Labor Market ◽  
Distance Learning ◽  
Experiential Learning ◽  
Unemployment Rate ◽  
Administrative Management ◽  
Sustainable Employment ◽  
The Impact ◽  
Business And Management

The supply of business and management graduates to the labor market has grown significantly. However, these graduates still find themselves without employment for years. This is because employment is lagging behind economic growth. As a result, unemployment rate in South Africa has increased from 22% in 1994 to 25% in 2014. In response, government, employers and managers are striving to create sustainable employment. However, creating sustainable employment is both challenging and difficult. No wonder that there is a constant cry to establish factors that enable sustainable employment. The aim of this research is to establish the impact of experiential learning in administrative management on sustainable employment. The research is quantitative in nature, and a questionnaire is used to collect data from the respondents. The research establishes that experiential learning in administrative management enables sustainable employment

scholarly journals Motivational Factors and Job Performance: The Mediating Roles of Employee Engagement

2021 ◽  
Vol 11 (3) ◽  
pp. 67
Author(s):  
Hussain Almawali ◽  
Nor Intan Adha Hafit ◽  
Narehan Hassan
Keyword(s):  
Public Sector ◽  
Job Performance ◽  
Employee Engagement ◽  
Motivational Factors ◽  
Future Research ◽  
Ministry Of Education ◽  
Government Sector ◽  
The Government ◽  
The Impact ◽  
The Relationship

This research examines the relationship between motivational factors, job performance, employee engagement and the impact of motivational factors on job performance function of employee engagement as a mediator in the government sector in the Sultanate of Oman. A quantitative study methodology was used, and six hypotheses were evaluated using 111 representative government employees from the Ministry of Education. This study is a pilot test. This study uses quota sampling, and Statistical Package for the Social Sciences (SPSS) and path analysis techniques were used for the analysis. The study's findings indicate that these factors have a favorable association, that motivational factors have significant positive relationships with employee engagement and job performance, and that employee engagement acts as a partial mediator in the relationship between motivational factors and job performance. This study is critical for leaders and regulators interested in enhancing job performance in Oman's public sector. This is one of the few studies on the mediating function of employee engagement in the link between motivational variables and job performance. This is the first research of its kind in Oman for the public sector. Other motivational variables could be examined and evaluated in the private sector in Future research.

scholarly journals Analysis of the Impact of Fiscal Policy on Economic Growth in South Africa: VECM Approach

2018 ◽  
Vol 10 (2) ◽  
pp. 231
Author(s):  
Tshembhani Mackson HLONGWANE ◽  
Itumeleng Pleasure MONGALE ◽  
Lavisa TALA
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Fiscal Policy ◽  
Negative Impact ◽  
National Development ◽  
Real Gdp ◽  
Long Run ◽  
Fixed Capital Formation ◽  
The Government ◽  
The Impact

Fiscal policy ensures macroeconomic stability as a precondition for growth at the macro level. This study investigates the impact of fiscal policy on economic growth of South Africa from 1960 to 2014 through a Cointegrated Vector Autoregression approach. It seeks to contribute to the existing literature as well as in designing effective fiscal policy programmes which can propel economic performance. Theresults of the long run estimates revealed that government tax revenue has a positive and significant long run influence on economic growth, whereas the government gross fixed capital formation and budget deficit have a negative impact on real GDP. For that reason, the study recommends that some expansionary fiscal policy measures should be strengthened since they play a very important role in the economy so as to meet the government target of the National Development Plan Vision for 2030.

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