We examine a number of personnel practices, laws and regulations that lower the supply of labor in the Japanese economy. Broadly speaking, there are two kinds of impediments, those that restrict the movement of labor between firms, and those that discourage women from participating to a greater extent. Using other OECD countries and especially the United States as a benchmark, we estimate that removal of these barriers would increase the productive labor supply in Japan by some 13 to 18 percent and thus could raise the potential growth rate of the Japanese economy by roughly 1% per annum over a ten-year period.
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Length: 26 pages Date of creation: 15 Mar 2002 Date of revision: Publication status: Published in Structural Impediments to Japan's Economic Growth, Blomstrom, Magnus, Corbett, Jennifer, Hayashi, Fumio, Kashyap, Anil (eds.), 2003, pages 225-257, NBER/University of Chicago Press. Handle: RePEc:hhs:hastef:0500
Note: A later version of the paper is also available as NBER working paper no. 9484, February 2003. Contact details of provider: Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden Phone: +46-(0)8-736 90 00 Fax: +46-(0)8-31 01 57 Email: Web page: http://www.hhs.se/ More information through EDIRC
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