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Polarization and Persistence in the Japanese Labor Market

Author

Listed:
  • Hiroshi Teruyama

    (Institute of Economic Research, Kyoto University)

  • Hiroyuki Toda

    (Institute of Economic Research, Kyoto University, Institute of Social and Economic Research, Osaka University)

Abstract

This study analyzes the persistence of regular and non-regular employment status in Japan for workers that change jobs. In particular, we investigate two hypotheses behind this persistence. The first is the dependence of the employment status in the current job on that in the previous job. The second is the dependence of the employment status in the current job on that in the initial job, which is called first job effects. While both types of dependence are empirically verified, the former is shown to be quantitatively more substantial. Therefore, the serially dependent structure of employment status matters critically to the segmentation of the labor market in Japan.

Suggested Citation

  • Hiroshi Teruyama & Hiroyuki Toda, 2017. "Polarization and Persistence in the Japanese Labor Market," KIER Working Papers 957, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:957
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP957.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kyoji Fukao & Cristiano Perugini, 2021. "The Long‐Run Dynamics of the Labor Share in Japan," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 445-480, June.
    2. Hiroshi Teruyama & Hiroyuki Toda, 2017. "Wage Profiles in the Japanese Dual Labor Market," KIER Working Papers 961, Kyoto University, Institute of Economic Research.

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    More about this item

    Keywords

    dual labor market; non-regular workers; state dependence; cohort effects; first job effects; Japanese labor market;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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