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Labour Market Reforms in Japan to Improve Growth and Equity

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  • Randall S. Jones
  • Satoshi Urasawa
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    Abstract

    Traditional Japanese labour market practices, which benefited both workers and firms during the highgrowth era, are no longer appropriate in the context of slow economic growth and rapid population ageing. Reforms are needed in light of the upward trend in non-regular employment to break down labour market dualism and to encourage greater labour force participation by women, the elderly and youth. A comprehensive approach that includes improving the social insurance coverage of non-regular workers and upgrading training programmes for them, preventing discrimination against non-regular workers and reducing effective employment protection for regular workers would increase labour market flexibility and human capital. Moreover, such reforms would increase equity across different segments of the labour force. Drawing more women into the labour force requires removing financial disincentives to work, creating more family-friendly workplaces and increasing the availability of childcare. The labour force participation of the elderly should be raised by promoting continuous employment and abolishing mandatory retirement. More effective vocational training is needed for younger workers. This Working Paper relates to the 2011 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/Japan). Réformer le marché du travail au Japon pour stimuler la croissance et améliorer l'équité Les pratiques traditionnellement suivies au Japon sur le marché du travail, bénéfiques aussi bien aux travailleurs qu’aux entreprises en période de forte croissance, ne sont plus de mise dans un contexte de ralentissement de la croissance économique et de vieillissement rapide de la population. Au vu de la tendance à la hausse de l’emploi non régulier, des réformes sont nécessaires pour mettre fin au dualisme du marché du travail et encourager une participation plus intense des femmes, des travailleurs âgés et des jeunes à la vie active. Une démarche globale incluant une amélioration de la couverture sociale et une augmentation des programmes de formation professionnelle pour les travailleurs non réguliers, une exclusion des discriminations contre eux et réduisant la protection de l’emploi dont bénéficient les travailleurs réguliers permettrait de renforcer la flexibilité du marché du travail et d’accroître le capital humain. Les réformes devraient en outre contribuer à améliorer l’équité entre les différents segments de la population active. Pour attirer davantage les femmes vers la vie active, il convient d’éliminer les mécanismes financiers qui jouent contre le travail, en créant des emplois plus conciliables avec la vie de famille et en développant les services de garde d’enfants. L’intégration des plus âgés sur le marché du travail doit être renforcée en favorisant leur maintien en activité et en supprimant l’âge de départ obligatoire à la retraite. Il faut également offrir aux jeunes une formation professionnelle plus efficace. Ce Document de travail se rapporte à l’Étude économique de l’OCDE du Japon, 2011 (www.oecd.org/eco/etudes/japon).

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    File URL: http://dx.doi.org/10.1787/5kg58z6p1v9q-en
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 889.

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    Date of creation: 06 Sep 2011
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    Handle: RePEc:oec:ecoaaa:889-en

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    Keywords: Japan; labour force participation rates; female employment; employment protection; vocational training; non-regular workers; part-time workers; work-life balance; dualism; labour market; Japanese economy; dispatched workers; fixed-term contracts; older workers; fertility rate; Japon; contrats à durée déterminée; marché du travail; formation professionnelle; travailleurs intérimaires; dualisme; travailleurs à temps partiel; économie japonaise; activité des femmes; taux de fécondité; équilibre entre travail et vie familiale; travailleurs âgés; protection de l'emploi; travailleurs non réguliers;

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