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Job Security Laws and Structural Change in the Japanese Labor Market

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  • Kenji Azetsu

    (Graduate School of Economics, Kobe University)

  • Mototsugu Fukushige

    ()
    (Graduate School of Economics, Osaka University)

Abstract

There are a number of indications that Japanese job security laws have been relaxed since the end of the 1990s. The purpose of this paper is to establish causality between job security laws and firing costs in the Japanese labor market. The analysis first investigates when and how firing costs changed, and then compares the timing of these changes in firing costs with those of job security laws. The results indicate that gradual changes in firing costs began in about 1992, lagging one or two years behind the bursting of the bubble economy, while job security laws started to change towards the end of the 1990s.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0531.pdf
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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 05-31.

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Length: 28 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:osk:wpaper:0531

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: Adjustment costs for labor; Gradual switching model; Job security laws;

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  1. Andrew Hildreth and Fumio Ohtake, . "Labor Demand and the Structure of Adjustment Costs in Japan," Economics Discussion Papers 469, University of Essex, Department of Economics.
  2. Pfann, Gerard A & Palm, Franz C, 1993. "Asymmetric Adjustment Costs in Non-linear Labour Demand Models for the Netherlands and U.K. Manufacturing Sectors," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 397-412, April.
  3. Jaramillo, Fidel & Schiantarelli, Fabio & Sembenelli, Alessandro, 1993. "Are Adjustment Costs for Labor Asymmetric? An Econometric Test on Panel Data for Italy," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 640-48, November.
  4. Kenji Azetsu & Mototsugu Fukushige, 2009. "The estimation of asymmetric adjustment costs for the number of workers and working hours - empirical evidence from Japanese industry data," Applied Economics Letters, Taylor & Francis Journals, vol. 16(10), pages 995-998.
  5. Nickell, S.J., 1987. "Dynamic models of labour demand," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 9, pages 473-522 Elsevier.
  6. Goux, Dominique & Maurin, Eric & Pauchet, Marianne, 2001. "Fixed-term contracts and the dynamics of labour demand," European Economic Review, Elsevier, vol. 45(3), pages 533-552, March.
  7. Ohtani, Kazuhiro & Kakimoto, Sumio & Abe, Kenzo, 1990. "A gradual switching regression model with a flexible transition path," Economics Letters, Elsevier, vol. 32(1), pages 43-48, January.
  8. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
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