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Employment Adjustment in Japanese Firms: Negative Profits and Dismissals

In: Internal Labour Markets, Incentives and Employment

Author

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  • Terukazu Suruga

Abstract

Japanese aggregate employment for the entire economy or industrial sectors is very stable over time. In comparison with other developed countries, change of aggregate employment to change of output is also small in Japan. On the other hand, we are able to find individual firms experiencing annual employment changes exceeding the 10–20 per cent range as shown by Chuma (1994). The ordinary smooth employment adjustment model cannot explain these rapid declines in employment appropriately. This chapter presents a negative profit employment adjustment model and attempts to explain the movement of employment in some Japanese large firms experiencing rapid decline in employment.

Suggested Citation

  • Terukazu Suruga, 1998. "Employment Adjustment in Japanese Firms: Negative Profits and Dismissals," Palgrave Macmillan Books, in: Isao Ohashi & Toshiaki Tachibanaki (ed.), Internal Labour Markets, Incentives and Employment, chapter 9, pages 196-221, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37797-4_9
    DOI: 10.1057/9780230377974_9
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    Citations

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    Cited by:

    1. Kato, Takao,, 2016. "Productivity, wages and unions in Japan," ILO Working Papers 994904643402676, International Labour Organization.
    2. Kubo, Katsuyuki & Saito, Takuji, 2012. "The effect of mergers on employment and wages: Evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 26(2), pages 263-284.
    3. Sebastien Lechevalier & Cyrille Dossougoin & Christophe Hurlin & Satoko Takaoka, 2014. "How did the Japanese Employment System Change?Investigating the Heterogeneity of Downsizing Practices across Firms," KIER Working Papers 883, Kyoto University, Institute of Economic Research.
    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. Kambayashi, Ryo & Kato, Takao, 2012. "Good Jobs, Bad Jobs, and the Great Recession: Lessons from Japan's Lost Decade," IZA Discussion Papers 6666, Institute of Labor Economics (IZA).
    6. KUBO Katsuyuki & TSUBONO Kodai, 2022. "The Effect of Investment Funds on Employment and Wages," Discussion papers 22044, Research Institute of Economy, Trade and Industry (RIETI).
    7. 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).
    8. KATO Takao & KODAMA Naomi, 2016. "Corporate Social Responsibility and Gender Diversity in the Workplace: Evidence from Japan," Discussion papers 16063, Research Institute of Economy, Trade and Industry (RIETI).

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