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Occupational licenses and labor market outcomes in Japan

Author

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  • Morikawa, Masayuki

Abstract

This study, using original survey data, documents the relationship between occupational licenses and labor market outcomes in Japan. The novelty of this study is that it distinguishes between the possession and actual use of occupational credentials, as well as between stringent licenses and lenient certifications. Occupational licenses and certifications have a large presence in the Japanese labor market. The possession of occupational credentials, particularly licenses, has positive associations with the labor market attachment and wages of individuals. On the other hand, the occupational licensing system might negatively affect market efficiency through the creation of monopoly rents.

Suggested Citation

  • Morikawa, Masayuki, 2018. "Occupational licenses and labor market outcomes in Japan," Japan and the World Economy, Elsevier, vol. 48(C), pages 45-56.
  • Handle: RePEc:eee:japwor:v:48:y:2018:i:c:p:45-56
    DOI: 10.1016/j.japwor.2018.07.002
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Occupational credential; License; Certification; Wage premium; Service sector;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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