RIEB Discussion Paper Series No.2024-29

Title

Did COVID-19 Deteriorate Mismatch in the Japanese Labor Market?

Abstract

This study examines how the COVID-19 pandemic deteriorated the occupational mismatch between job seekers and vacancies in the Japanese labor market. We particularly investigate how occupational vulnerability and labor market segmentation by employment type (full-time versus part-time) affected mismatch dynamics during the pandemic. We estimate the mismatch indices across occupations by vulnerability and employment type using the method developed by Şahin et al. (2014). We find that the pandemic induced mismatch across occupations with a high risk ofinfection and occupations in which it is easy to work remotely for both full- and part-time workers. Furthermore, mismatch across occupations in which it is particularly difficult to work remotely increased for full-time workers.

Keywords

Mismatch; O-NET data; COVID-19; Labor market tightness

JEL Classification

J61, J62, J63

Inquiries

Yudai HIGASHI
Faculty of Economics, Kyoto Sangyo University, JAPAN
Junior Research Fellow, Research Institute for Economics and Business Administration, Kobe University, JAPAN

Masaru SASAKI
Graduate School of Economics, Osaka University, JAPAN
Institute of Labor Economics (IZA), GERMANY