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ICT, offshoring, and the demand for part-time workers: The case of Japanese manufacturing

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  • Kiyota, Kozo
  • Maruyama, Sawako

Abstract

This paper examines the effects of information and communication technology (ICT) and offshoring on the skill demand in Japanese manufacturing. One of the contributions of this paper is that we focus explicitly on the demand for low-wage part-time workers, which we call low skilled workers. Estimating a system of variable factor demands for the period 1980–2011, we find that industries with higher ICT stock shifted demand from middle-low to middle-high and low skilled workers. Offshoring is associated with the increasing demand for high skilled workers but it has insignificant effects on the demand for middle-high, middle-low, and low skilled workers. The results together suggest that the increasing demand for low-wage part-time workers can be attributable to ICT in Japan.

Suggested Citation

  • Kiyota, Kozo & Maruyama, Sawako, 2017. "ICT, offshoring, and the demand for part-time workers: The case of Japanese manufacturing," Journal of Asian Economics, Elsevier, vol. 48(C), pages 75-86.
  • Handle: RePEc:eee:asieco:v:48:y:2017:i:c:p:75-86
    DOI: 10.1016/j.asieco.2016.10.007
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    Cited by:

    1. Theresa M. GREANEY & Baybars KARACAOVALI, 2017. "Trade, Growth and Economic Inequality in the Asia-Pacific Region: Lessons for Policymakers," Journal of Economics and Political Economy, KSP Journals, vol. 4(2), pages 135-143, June.
    2. Timothy DESTEFANO & HANEDA Sho & KWON Hyeog Ug, 2019. "Determinants of Structural Adjustment and Employment Use in Japan: Firm Characteristics, Offshoring and Industrial Robotics," Discussion papers 19067, Research Institute of Economy, Trade and Industry (RIETI).
    3. Kozo Kiyota & Sawako Maruyama, 2018. "On the Demand for Female Workers in Japan: The Role of ICT and Offshoring," Asian Economic Papers, MIT Press, vol. 17(2), pages 25-46, Summer.
    4. Taniguchi, Mina, 2019. "The effect of an increase in imports from China on local labor markets in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 1-18.

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    More about this item

    Keywords

    Labor demand; Part-time workers; Offshoring; Information and communication technology; Skills;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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