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Internal labor markets and gender inequality: Evidence from Japanese micro data, 1990–2009

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  • Kawaguchi, Akira

Abstract

This study investigate whether internal labor markets (ILMs) are associated with gender inequality in the Japanese workplace and whether their recent erosion has improved gender equality. Specifically, we used data over two decades from the Basic Surveys on Wage Structure to apply pooled ordinary least squares and fixed effect estimation to three indexes on gender equality and another three indexes of internal labor markets. We found that establishments with ILMs have significantly high gender inequality in their workplaces. That is, establishments with the lifetime employment system, the seniority wage systems, or the internal promotion system are likely to have large gender wage gaps, employ less female full-time workers, and have less female managers. However, these negative associations become much smaller or even disappear when we apply a fixed effect model using quasi-panel data. The erosion of ILMs may not be an important driving force of gender equalization, and establishments that have improved gender equality may not necessarily have moved away from ILMs.

Suggested Citation

  • Kawaguchi, Akira, 2015. "Internal labor markets and gender inequality: Evidence from Japanese micro data, 1990–2009," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 193-213.
  • Handle: RePEc:eee:jjieco:v:38:y:2015:i:c:p:193-213
    DOI: 10.1016/j.jjie.2015.04.004
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    References listed on IDEAS

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    1. Ono, Hiroshi, 2010. "Lifetime employment in Japan: Concepts and measurements," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 1-27, March.
    2. Hashimoto, Masanori & Raisian, John, 1985. "Employment Tenure and Earnings Profiles in Japan and the United States," American Economic Review, American Economic Association, vol. 75(4), pages 721-735, September.
    3. Kawaguchi, Daiji & Ueno, Yuko, 2013. "Declining long-term employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 28(C), pages 19-36.
    4. Kato, Takao, 2001. "The End of Lifetime Employment in Japan?: Evidence from National Surveys and Field Research," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 489-514, December.
    5. Kawaguchi, Daiji, 2007. "A market test for sex discrimination: Evidence from Japanese firm-level panel data," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 441-460, June.
    6. Kambayashi, Ryo & Kato, Takao, 2011. "Long-term Employment and Job Security over the Last Twenty-Five Years: A Comparative Study of Japan and the U.S," IZA Discussion Papers 6183, Institute of Labor Economics (IZA).
    7. Yamamoto Isamu & Matsuura Toshiyuki, 2014. "Effect of Work–Life Balance Practices on Firm Productivity: Evidence from Japanese Firm-Level Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(4), pages 1-32, October.
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    1. repec:eee:labeco:v:53:y:2018:i:c:p:213-229 is not listed on IDEAS

    More about this item

    Keywords

    Lifetime employment system; Seniority wage system; Internal promotion system; Female managers; Gender wage gap;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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