| 2024.11.21 (THU) 14:40-17:50 科研費プロジェクト23K01394共催 |
| 14:40-16:10 | Unleashing Innovation and Entrepreneurship: Ripple Effects of Employment Protection Reforms 法政大学 片桐 満 氏 |
 | This study investigates the effects of employment protection legislation (EPL) on en- trepreneurship, firm dynamics, and economic growth in a general equilibrium model that incorporates endogenous Schumpeterian growth. The model implies that more stringent EPL encourages households to accumulate more firm-specific human capital, which raises the opportunity cost to start a business. Using Japanese firm- and household-level microdata to calibrate parameter values, the quantitative exercise reveals that EPL reform aimed at its elimination could stimulate entrepreneurship in the household sector, thus boosting economic growth through more creative destruction in the firm sector. A partial equilibrium model that disregards the general equilibrium effects can overestimate or underestimate the policy effects of the EPL reform on entrepreneurship and economic growth. Policies that directly support firm entries or incumbents’ research and development investment have limited impacts on economic growth as long as stringent EPL exists. |
| 16:20-17:50 | Supply Shocks, Employment Gap, and Monetary Policy (joint with Willem Van Zandweghe) 日本銀行 黒住 卓司 氏 |
 | How should monetary policy respond to supply shocks in terms of inflation and employment stabilization? We introduce labor force entry and exit in an otherwise standard model with staggered price- and wage-setting to include employment in the model. A welfare-maximizing policy features wage growth stabilization with variation in the employment gap and inflation. Under staggered price- and wage-setting, the real wage adjustments to shocks entail a welfare cost, and variation in the employment gap contributes to reducing the welfare cost. Therefore, leaning against the employment gap induces substantial welfare losses for supply shocks compared to the welfare-maximizing policy. |
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