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Wage Profiles in the Japanese Dual 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 examines the dual structure of wage formation in regular and non-regular employment sectors in Japan. By using data from a series of surveys conducted in the Tokyo metropolitan area during 2002--2014, two sectoral wage functions and an employment status determination function are estimated simultaneously. The estimated results reveal several facts regarding the new era of the Japanese dual labor market. While the wages of regular workers rise with years of tenure and external experience, those of non-regular workers increase only with the latter. The wage increases owing to experience are of a similar magnitude between employment statuses (except for female regular workers), and the firm-size and educational-background premiums exist only in the regular employees' wages. The study also shows that the slopes of regular workers' wage-tenure profiles have been rather stable for more than 10 years since the early 2000s.

Suggested Citation

  • Hiroshi Teruyama & Hiroyuki Toda, 2017. "Wage Profiles in the Japanese Dual Labor Market," KIER Working Papers 961, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:961
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP961.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    dual labor market; wage profiles; non-regular workers; Japanese labor market; switching regression model;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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