Business Ownership and Unemployment in Japan
The influence of industrial structure, more specifically of business ownership, is investigated on the level of unemployment in Japan. The question is to what extent business ownership, i.e., entrepreneurship, can reduce the level of unemployment. It will be concluded that Japan is hardly an outlier when using a simple model of the relationship between unemployment and the rate of business ownership. The model is calibrated using recent data of 23 OECD countries. It shows a minor underestimation of the rise in unemployment in Japan in the period 1984-2002. Arguments are brought forward why this might be the case. We argue that small firms in Japan have benefitted in the past from the protective environment of the keiretsu structure. In the current process of industrial restructuring, keiretsu support is dissipating, but has not yet been adequatly replaced with a market environment conducive to the establishment and growth of entrepreneurial firms. The underestimation of the rise in unemployment is a reflection of the limited access of small firms to the market in Japan.
|Date of creation:||Mar 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49-3641-68 65
Fax: +49-3641-68 69 90
Web page: http://www.econ.mpg.de/
More information through EDIRC
|Order Information:|| Web: http://www.econ.mpg.de/english/research/EGP/discuss.php Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aoki, Masahiko, 1990.
"Toward an Economic Model of the Japanese Firm,"
Journal of Economic Literature,
American Economic Association, vol. 28(1), pages 1-27, March.
- Cowling, Keith & Tomlinson, Philip R., 2002. "The Problem Of Regional "Hollowing Out" In Japan : Lessons For Regional Industrial Policy," The Warwick Economics Research Paper Series (TWERPS) 625, University of Warwick, Department of Economics.
- Hugh Whittaker, 2001. "Crisis and innovation in Japan: a new future through techno-entrepreneurship?," ESRC Centre for Business Research - Working Papers wp193, ESRC Centre for Business Research.
- Niels Bosma & Jolanda Hessels & Veronique Schutjens & Mirjam van Praag & Ingrid Verheul, 2011.
"Entrepreneurship and Role Models,"
Tinbergen Institute Discussion Papers
11-061/3, Tinbergen Institute.
- 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.
- Urata, Shujiro & Kawai, Hiroki, 2002. " Technological Progress by Small and Medium Enterprises in Japan," Small Business Economics, Springer, vol. 18(1-3), pages 53-67, Feb.- May.
- Blau, David M, 1987. "A Time-Series Analysis of Self-employment in the United State," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 445-67, June.
- Kwoka, John E, Jr & White, Lawrence J, 2001.
" The New Industrial Organization and Small Business,"
Small Business Economics,
Springer, vol. 16(1), pages 21-30, February.
- Kwoka Jr., J.E. & White, L.J., 2000. "The New Industrial Organization and Small Business," New York University, Leonard N. Stern School Finance Department Working Paper Seires ec-00-03, New York University, Leonard N. Stern School of Business-.
- John E. Kwoka Jr. & Lawrence J. White, 2000. "The New Industrial Organization and Small Business," Working Papers 00-03, New York University, Leonard N. Stern School of Business, Department of Economics.
- Kawai, Hiroki & Urata, Shujiro, 2002. " Entry of Small and Medium Enterprises and Economic Dynamism in Japan," Small Business Economics, Springer, vol. 18(1-3), pages 41-51, Feb.- May.
- Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
- Gartner, William B. & Shane, Scott A., 1995. "Measuring entrepreneurship over time," Journal of Business Venturing, Elsevier, vol. 10(4), pages 283-301, July.
- Wennekers, Sander & Thurik, Roy, 1999. " Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
- André van Stel, 2003. "COMPENDIA 2000.2: a harmonized data set of business ownership rates in 23 OECD countries," Scales Research Reports H200302, EIM Business and Policy Research.
- Genda, Yuji, 1998. "Job Creation and Destruction in Japan, 1991-1995," Journal of the Japanese and International Economies, Elsevier, vol. 12(1), pages 1-23, March.
- Masao Nakamura & Ilan Vertinsky & Charlene Zietsma, 1997. "Does Culture Matter in Inter-Firm Cooperation? Research Consortia in Japan and the USA," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 153-175.
- Roy Thurik, 2003. "Entrepreneurship and Unemployment in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(3), pages 264-290, 08.
- David B. Audretsch & A. Roy Thurik, 2000. "Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 17-34.
- Genda, Yuji & Rebick, Marcus E, 2000. "Japanese Labour in the 1990s: Stability and Stagnation," Oxford Review of Economic Policy, Oxford University Press, vol. 16(2), pages 85-102, Summer.
- David Audretsch & Roy Thurik, 2004. "A Model of the Entrepreneurial Economy," Papers on Entrepreneurship, Growth and Public Policy 2004-12, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- Imai, Ken-ichi & Itami, Hiroyuki, 1984. "Interpenetration of organization and market : Japan's firm and market in comparison with the U.S," International Journal of Industrial Organization, Elsevier, vol. 2(4), pages 285-310, December.
- Abe, Masahiro & Ohta, Souichi, 2001. "Fluctuations in Unemployment and Industry Labor Markets," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 437-464, December.
- Genda, Yuji & Kambayashi, Ryo, 2002. "Declining Self-Employment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(1), pages 73-91, March.
- Isabel Grilo & Roy Thurik, 2004.
"Determinants of entrepreneurship in Europe,"
Papers on Entrepreneurship, Growth and Public Policy
2004-30, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Grilo, I. & Thurik, A.R., 2004. "Determinants Of Entrepreneurship In Europe," ERIM Report Series Research in Management ERS-2004-106-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, June.
- Roy Thurik & Sander Wennekers & Lorraine Uhlaner, 2002. "Entrepreneurship and economic performance: a macro perspective," Scales Research Reports N200220, EIM Business and Policy Research.
- Cowling, Keith & Tomlinson, Philip R., 2002. "Re-Visiting The Roots Of Japan'S Structural Decline:The Role Of The Japanese Corporation," The Warwick Economics Research Paper Series (TWERPS) 624, University of Warwick, Department of Economics.
- White, Lawrence J, 1982. "The Determinants of the Relative Importance of Small Business," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 42-49, February.
When requesting a correction, please mention this item's handle: RePEc:esi:egpdis:2004-09. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kerstin SchÃ¼ck)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.