Testing the Dual Structure of the Japanese Labor Market

Kitagawa, Akiomi; Ohta, Souichi; Teruyama, Hiroshi

doi:10.1007/978-981-10-7158-4_4

Cited by 2 publications

(11 citation statements)

References 18 publications

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“…This produces consequences on labour demand and remunerations in all segments of the Japanese labour market, including regular workers (Kitagawa et al . 2018; Watanabe 2018).…”

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

“…(2012) and Kitagawa et al . (2018) show that this is a general trend, and employment on a non‐regular contract is increasingly becoming an option for all college graduates at the beginning of their working career. As the probability of transition from non‐regular to regular positions is low (Kitagawa et al .…”

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

“…As the probability of transition from non‐regular to regular positions is low (Kitagawa et al . 2018), this labour market entry option is likely to become a long‐term trap of repeated temporary/low‐wage jobs.…”

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

“…Non-regular employees (hiseiki shain) include, for example, dispatched workers, contract workers, and part-timers. This labour market pool in Japan can be considered as being a close approximation to the atypical or non-standard employment prevalent in European countries and the USA (Kitagawa et al 2018). Given its characteristics, the growth on non-regular work has been considered to represent the crisis of the traditional Japanese employment system, based on lifetime employment (Ono 2010;Kawaguchi and Ueno 2013).…”

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

“…The phenomenon can be explained by several factors (Kitagawa et al 2018): (i) increased labour force participation of women preferring short-time jobs; (ii) growth of service sector jobs characterized by large workload differences between the busiest and least-busy time of day; (iii) evolution of IT technologies that enable firms to simplify tasks so that non-regular workers can perform them; and (iv) increased uncertainty of the future business environment. Asano et al (2013) show that although each factor partly explains the increase in the share of non-regular workers in Japan, higher uncertainty plays the most relevant role in most recent years.…”

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

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Non‐standard Employment and Rent‐sharing

2022

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In this paper, we analyse how non-standard (or non-regular) employment affects the capacity of regular workers to appropriate rents. In this context, we first extend the theoretical framework of Estevão and Tevlin to account for the heterogeneity of labour (regular and non-regular workers). The predictions of the model are then tested with detailed industry-level data over four decades for Japan, where, similar to the majority of advanced OECD countries, the role of standard employment has declined significantly. After controlling for worker characteristics (gender, age, education) and using an array of econometric approaches, our results indicate that in contexts characterized by a higher share of non-regular employment, rent-sharing by regular workers is lower. This might have contributed to the long-run wage stagnation observed in Japan in recent decades.

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“…This produces consequences on labour demand and remunerations in all segments of the Japanese labour market, including regular workers (Kitagawa et al . 2018; Watanabe 2018).…”

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

Section: Labour Market Specificities and Trends In Japanmentioning

confidence: 99%

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Non‐standard Employment and Rent‐sharing

2022

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Which employers pay a higher college wage premium?

Ikeuchi,

Fukao,

Perugini

2024

IJM

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PurposeThe authors' work aims to identify the employer-specific drivers of the college (or university) wage gap, which has been identified as one of the major determinants of the dynamics of overall wage and income inequality in the past decades. The authors focus on three employer-level features that can be associated with asymmetries in the employment relation orientation adopted for college and non-college-educated employees: (1) size, (2) the share of standard employment and (3) the pervasiveness of incentive pay schemes.Design/methodology/approachThe authors' establishment-level analysis (data from the Basic Survey on Wage Structure (BSWS), 2005–2018) focusses on Japan, an economy characterised by many unique economic and institutional features relevant to the aims of the authors' analysis. The authors use an adjusted measure of firm-specific college wage premium, which is not biased by confounding individual and establishment-level factors and reflects unobservable characteristics of employees that determine the payment of a premium. The authors' empirical methods account for the complexity of the relationships they investigate, and the authors test their baseline outcomes with econometric approaches (propensity score methods) able to address crucial identification issues related to endogeneity and reverse causality.FindingsThe authors' findings indicate that larger establishment size, a larger share of regular workers and more pervasive implementation of IPSs for college workers tend to increase the college wage gap once all observable workers, job and establishment characteristics are controlled for. This evidence corroborates the authors' hypotheses that a larger establishment size, a higher share of regular workers and a more developed set-up of performance pay schemes for college workers are associated with a better capacity of employers to attract and keep highly educated employees with unobservable characteristics that justify a wage premium above average market levels. The authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.Originality/valueThe authors' contribution to the existing knowledge is threefold. First, the authors combine the economics and management/organisation literature to develop new insights that underpin the authors' testable empirical hypotheses. This enables the authors to shed light on employer-level drivers of wage differentials (size, workforce composition, implementation of performance-pay schemes) related to many structural, institutional and strategic dimensions. The second contribution lies in the authors' measure of the “adjusted” college wage gap, which is calculated on the component of individual wages that differs between observationally identical workers in the same establishment. As such, the metric captures unobservable workers' characteristics that can generate a wage premium/penalty. Third, the authors provide empirical evidence on how three relevant establishment-level characteristics shape the heterogeneity of the (adjusted) college wage observed across organisations.

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Testing the Dual Structure of the Japanese Labor Market

Cited by 2 publications

References 18 publications

Non‐standard Employment and Rent‐sharing

Non‐standard Employment and Rent‐sharing

Which employers pay a higher college wage premium?

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