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Temporary Jobs and Globalization: Evidence from Japan

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  • MACHIKITA Tomohiro
  • SATO Hitoshi

Abstract

Since the 1990s, there has been a rapid increase in the proportion of temporary workers in the Japanese workforce. This paper empirically explores a linkage between the shift from permanent to temporary workers in the Japanese manufacturing sector and economic globalization, using various industry level data. We find that FDI and/or outsourcing tend to encourage the replacement of permanent workers with temporary workers in home production. In addition, we find that industries with higher exports are the most aggressive in replacing permanent workers with temporary workers. However, some other measures of global market competition such as world share of value added are not always statistically significant. Our estimation suggests that the impact of these globalization channels is sizable relative to the impact of the Worker Dispatching Act in 2004.

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File URL: http://www.rieti.go.jp/jp/publications/dp/11e029.pdf
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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 11029.

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Length: 32 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:eti:dpaper:11029

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Cited by:
  1. Andrea Filippo Presbitero & Matteo G. Richiardi & Alessia Amighini, 2012. "Is labor flexibility a substitute to offshoring? Evidence from Italian manafacturing," Mo.Fi.R. Working Papers 72, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  2. Chie Aoyagi & Giovanni Ganelli, 2013. "The Path to Higher Growth," IMF Working Papers 13/202, International Monetary Fund.

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