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Reforming the Labour Market in Japan to Cope with Increasing Dualism and Population Ageing

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Author Info
Randall S. Jones
Abstract

The proportion of non-regular workers has risen to one-third of total employment. While non-regular employment provides flexibility and cost reductions for firms, it also creates equity and efficiency concerns. A comprehensive approach that includes relaxing the high degree of employment protection for regular workers and expanding the coverage of non-regular workers by the social security system would help to reverse dualism. Given that non-regular workers receive less firm-based training, it is also necessary to expand training outside of firms to support Japan’s growth potential, while enhancing the employment prospects of non-regular workers. Reversing the upward trend in non-regular employment may also encourage greater female labour force participation, which is essential given rapid population ageing that is already reducing Japan’s working-age population by almost 1% each year. Expanding childcare facilities and paying more attention to work-life balance would also boost female employment, while also raising Japan’s exceptionally low birth rate.

Réformer le marché du travail au Japon pour faire face à un dualisme grandissant et au vieillissement démographique
Les travailleurs non réguliers représentent désormais un tiers de l'ensemble des salariés. Or, s'il réduit les coûts de la flexibilité pour les entreprises, l'emploi non régulier suscite aussi des préoccupations sur le plan de l'efficience et de l'équité. Une approche globale, avec un assouplissement de la forte protection de l'emploi dont bénéficient les travailleurs réguliers et une extension de la couverture sociale des travailleurs non réguliers, aiderait à mettre fin au dualisme du marché du travail. Les travailleurs non réguliers ayant un accès plus limité que les autres à la formation en entreprise, il faudrait aussi développer la formation hors poste pour améliorer leurs perspectives d'emploi et renforcer ainsi le potentiel de croissance du Japon. Inverser la tendance à la hausse de l'emploi non régulier pourrait encourager une plus une plus forte participation des femmes à la vie active, ce qui est essentiel dans un pays où le vieillissement démographique a déjà pour effet de réduire la population d'âge actif de près de 1 % chaque année. De même, le développement des services de garde d'enfants et un plus grand souci de l'équilibre entre travail et vie familiale contribueraient à stimuler l'activité féminine, tout en relevant le taux de natalité exceptionnellement bas du Japon.

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Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 652.

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Date of creation: 01 Dec 2008
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Handle: RePEc:oec:ecoaaa:652-en

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Keywords: dualism; employment protection; female employment; fertility; Japan; labour force participation rates; Labour market adjustments; non-regular workers; old workers; part-time workers; vocational training; work-life balance; activité des femmes; dualisme; équilibre entre travail et vie familiale; formation professionnelle; Japon; marché du travail; protection de l'emploi; taux d'activité; taux de fécondité; travailleurs à temps partiel; travailleurs âgés; travailleurs non réguliers;

Find related papers by JEL classification:
J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
J7 - Labor and Demographic Economics - - Labor Discrimination

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