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From the Substance to the Shadow: The Court Embedded into Japanese Labor Markets

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  • NAKABAYASHI, Masaki

    ()
    (Institute of Social Science, The University of Tokyo)

Abstract

If a perfected claim cannot be placed on workers, investment in workers by employers could become less-than optimal. Thus, the protection of an employer's investment, balanced against mobility of the labor market for better employer-employee matches, is desired. We explore how Japanese state courts in their early period first directly protected the interests of employers, curbing mobility, and then indirectly governed trades between employers as a shadow off-the-equilibrium path, enabling labor market mobility with protection of an original employer's claim, in the labor market of the silk-reeling industry that led Japan's industrialization.

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File URL: http://www.iss.u-tokyo.ac.jp/publishments/dpf/pdf/f-168.pdf
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Bibliographic Info

Paper provided by Institute of Social Science, The University of Tokyo in its series ISS Discussion Paper Series (series F) with number f168.

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Length: 24 pages
Date of creation: 24 Feb 2014
Date of revision: 18 Mar 2014
Handle: RePEc:itk:issdps:f168

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Keywords: employment contract; poaching; bystanderfs infringement on claim; shadow of the law; Japan;

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  1. Suresh Naidu, 2010. "Recruitment Restrictions and Labor Markets: Evidence from the Postbellum U.S. South," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 413-445, 04.
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  5. Albert Choi & George Triantis, 2008. "Completing Contracts in the Shadow of Costly Verification," The Journal of Legal Studies, University of Chicago Press, vol. 37(2), pages 503-534, 06.
  6. Booth, Alison L & Frank, Jeff, 1999. "Earnings, Productivity, and Performance-Related Pay," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 447-63, July.
  7. Betsey Stevenson & Justin Wolfers, 2006. "Bargaining in the Shadow of the Law: Divorce Laws and Family Distress," The Quarterly Journal of Economics, MIT Press, vol. 121(1), pages 267-288, 02.
  8. Galenson, David W, 1981. "The Market Evaluation of Human Capital: The Case of Indentured Servitude," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 446-67, June.
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