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Constraints on the Level and Efficient Use of Labor in Japan

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Author Info
Hiroshi Ono
Marcus E. Rebick

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Abstract

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9484.

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Date of creation: Feb 2003
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Handle: RePEc:nbr:nberwo:9484

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Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Nakamura, Jiro & Ueda, Atsuko, 1999. "On the Determinants of Career Interruption by Childbirth among Married Women in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 13(1), pages 73-89, March. [Downloadable!] (restricted)
  2. Hashimoto, Masanori & Raisian, John, 1985. "Employment Tenure and Earnings Profiles in Japan and the United States," American Economic Review, American Economic Association, vol. 75(4), pages 721-35, September. [Downloadable!] (restricted)
  3. Mincer, Jacob & Higuchi, Yoshio, 1988. "Wage structures and labor turnover in the United States and Japan," Journal of the Japanese and International Economies, Elsevier, vol. 2(2), pages 97-133, June. [Downloadable!] (restricted)
  4. Shimada, Haruo & Higuchi, Yoshio, 1985. "An Analysis of Trends in Female Labor Force Participation in Japan," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S355-74, January. [Downloadable!] (restricted)
  5. Hashimoto, Mansanori, 1993. "Aspects of Labor Market Adjustments in Japan," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 136-61, January. [Downloadable!] (restricted)
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Cited by:
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  1. Cargill, Thomas, 2004. "Japan’s Economic and Financial Stagnation and the Possibility of a Second Lost Decade," EIJS Working Paper Series 199, The European Institute of Japanese Studies. [Downloadable!]
  2. Djavad Salehi-Isfahani & Russell D. Murphy, 2006. "Labor market flexibility and investment in human capital," Working Papers e06-5, Virginia Polytechnic Institute and State University, Department of Economics. [Downloadable!]
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