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The Adjustment Speed of Employment at Foreign-Owned Firms

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Author Info
Yukako Murakami
Kyoji Fukao

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Abstract

Is employment practice at foreign-owned firms different from that of Japan, the life-time employment system? Using firm level data of the Japanese manufacturing sector, this paper showed that the adjustment speed of employment at foreign-owned firms was slightly higher than at domestically-owned firms. This finding suggests that firm-specific skills are less important in foreign-owned firms than in Japanese firms.

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File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-207.pdf
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Publisher Info
Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d06-207.

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Date of creation: Mar 2007
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Handle: RePEc:hst:hstdps:d06-207

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Related research
Keywords: Multinational firms; FDI; adjustment speed; employment; life-time employment system;

Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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  1. Fukao, Kyoji & Otaki, Masayuki, 1993. "Accumulation of Human Capital and the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 73-99, February. [Downloadable!] (restricted)
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Abraham, Katharine G. & Houseman, Susan N., 1989. "Job security and work force adjustment: How different are U.S. and Japanese practices?," Journal of the Japanese and International Economies, Elsevier, vol. 3(4), pages 500-521, December. [Downloadable!] (restricted)
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  4. repec:cup:cbooks:9780521873680 is not listed on IDEAS
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