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How does the first job matter for an individual’s career life in Japan?

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  • Hamaaki, Junya
  • Hori, Masahiro
  • Maeda, Saeko
  • Murata, Keiko

Abstract

Exploiting annual information on the work status of female workers from the Japanese Panel Survey of Consumers (JPSC), this paper examines how an individual’s job status immediately after graduation, referred to as “first job,” matters for his/her future job career. Using the ratio of regular employees in the labor force in the year preceding an individual’s graduation as an instrument for the first-job status (i.e., regular job or not), we confirm that even for women, whose retention rates are lower than those of men because of marriage and childbirth, individuals’ first-job status has a significant effect on their job status in the future. We further find that the effect gradually declines over the years and effectively disappears around 10years after graduation. Finally, we find that the first-job effect is reversible: no negative effect of failing to obtain a regular job at graduation is observed if an individual can secure regular employment within a reasonable time period after graduation.

Suggested Citation

  • Hamaaki, Junya & Hori, Masahiro & Maeda, Saeko & Murata, Keiko, 2013. "How does the first job matter for an individual’s career life in Japan?," Journal of the Japanese and International Economies, Elsevier, vol. 29(C), pages 154-169.
    • Handle: RePEc:eee:jjieco:v:29:y:2013:i:c:p:154-169
    DOI: 10.1016/j.jjie.2013.07.004
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    Cited by:

    1. Hiroshi Teruyama & Hiroyuki Toda, 2017. "Polarization and Persistence in the Japanese Labor Market," KIER Working Papers 957, Kyoto University, Institute of Economic Research.
    2. Chiang, Hui-Yu & Ohtake, Fumio, 2014. "Performance-pay and the gender wage gap in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 71-88.
    3. Hamaaki, Junya & Hori, Masahiro & Maeda, Saeko & Murata, Keiko, 2013. "How does the first job matter for an individual’s career life in Japan?," Journal of the Japanese and International Economies, Elsevier, vol. 29(C), pages 154-169.
    4. KONDO Ayako, 2023. "Scars of the Job Market "Ice-Age"," Discussion papers 23042, Research Institute of Economy, Trade and Industry (RIETI).
    5. Okamura, Kazuaki & Islam, Nizamul, 2021. "Multinomial employment dynamics with state dependence and heterogeneity: Evidence from Japan," Economic Modelling, Elsevier, vol. 101(C).
    6. Takayama, Noriyuki & Shiraishi, Kousuke, 2012. "Does a Bad Start Lead to a Bad Finish in Japan?," CIS Discussion paper series 547, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    7. Fumihiko SUGA, 2017. "The Returns to Postgraduate Education," ESRI Discussion paper series 336, Economic and Social Research Institute (ESRI).
    8. Fujii, Mayu & Shiraishi, Kousuke & Takayama, Noriyuki, 2013. "The Determinants and Effects of Early Job Separation in Japan," CIS Discussion paper series 590, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    9. Jess Diamond, 2018. "Employment Status Persistence in the Japanese Labour Market," The Japanese Economic Review, Springer, vol. 69(1), pages 69-100, March.
    10. Fumihiko Suga, 2020. "The returns to postgraduate education in Japan," The Japanese Economic Review, Springer, vol. 71(4), pages 571-596, October.
    11. Fujii, Mayu & Shiraishi, Kousuke & Takayama, Noriyuki, 2018. "The effects of early job separation on later life outcomes," Journal of the Japanese and International Economies, Elsevier, vol. 48(C), pages 68-84.

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    More about this item

    Keywords

    Youth labor market; Initial labor market conditions; Cost of recessions; Japan;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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