This study explores the characteristics of Japan's dual labor market. I identify these characteristics by analyzing the labor market stocks and flows using data from the Japanese Labour Force Survey and the Monthly Labour Survey. To control for demographic factors, I perform the analysis at both...

A perceptual gap between banks and firms exists in Japan, preventing the credit channel of monetary policy. Banks believe that bankable customers are scarce, while firms believe that banks do not issue loans without collateral or guarantees. To explain this gap, I focus on the dispersion in the...