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Firm-level labor demand for and macroeconomic increases in non-regular workers in Japan

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  • Teruyama, Hiroshi
  • Goto, Yasuo
  • Lechevalier, Sebastien

Abstract

The purpose of this study is to account for the increase in non-regular workers, namely, part-time and dispatched workers, in the Japanese economy from the early 2000s. We use a firm-level panel dataset extracted from an administrative survey and distinguish between the short-run and long-run determinants of non-regular labor demand. Using the estimated parameters of the labor demand function, we decompose the rate of increase in the macroeconomic non-regular worker ratio into determinant factor contributions. Our major results can be summarized as follows. First, the firm-level determinants of the demand for part-time and dispatched workers significantly differ. Second, our results suggest that the creation of part-time jobs stimulated by the increased female labor supply plays an essential role in non-regular worker growth relative to direct demand-side factors. On the contrary, increases in both the elderly and the female labor supply have reduced demand for dispatched workers. Third, the microeconomic demand conditions for non-regular labor are widely dispersed among firms. Neither the micro demand factors examined in this study nor industrial differences can explain this heterogeneity.

Suggested Citation

  • Teruyama, Hiroshi & Goto, Yasuo & Lechevalier, Sebastien, 2018. "Firm-level labor demand for and macroeconomic increases in non-regular workers in Japan," Japan and the World Economy, Elsevier, vol. 48(C), pages 90-105.
    • Handle: RePEc:eee:japwor:v:48:y:2018:i:c:p:90-105
    DOI: 10.1016/j.japwor.2018.08.006
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    Cited by:

    1. Kohara, Miki & Maity, Bipasha, 2021. "The Impact of Work-Life Balance Policies on the Time Allocation and Fertility Preference of Japanese Women," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    2. Kazuharu Yanagimoto, 2024. "Why not Choose a Better Job? Flexibility, Social Norms, and Gender Gaps in Japan," Working Papers wp2024_2405, CEMFI.
    3. Timothy DESTEFANO & Sho HANEDA & Hyeog KWON, 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).
    4. Esteban-Pretel, Julen & Fujimoto, Junichi, 2020. "Non-regular employment over the life-cycle: Worker flow analysis for Japan," Journal of the Japanese and International Economies, Elsevier, vol. 57(C).
    5. Higo, Masahiro, 2023. "What caused the downward trend in Japan’s labor share?," Japan and the World Economy, Elsevier, vol. 67(C).
    6. Takano, Tetsuaki, 2024. "Worker flows by gender and industry in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 71(C).

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    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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