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Employment of MNEs in Japan: New Evidence

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  • Kozo Kiyota
  • Toshiyuki Matsuura

Abstract

This paper asks two questions. 1) Do multinational enterprises (MNEs) present different patterns of employment from domestic firms? 2) Do workers in MNEs face a higher risk of losing jobs? We distinguish two types of MNEs (i.e., Japanese MNEs and foreign-owned firms) and utilize firm-level data in Japan between 1995 and 2000. It was true that the net job destruction of Japanese MNEs was larger than those of foreign-owned firms and domestic firms. However, this negative employment growth is attributable not to rapid job destruction but to slow job creation. Second, workers in Japanese MNEs and foreign-owned firms did not face a higher risk of losing jobs than did those in domestic firms. This finding contradicts the findings of Barba Navaretti, Turrini, and Checchi (2003) but is consistent with the firm-specific skill hypothesis of Fukao and Otaki (1993). Japanese MNEs and foreign-owned firms might invest heavily in job training, which results in their lower employment volatility.

Suggested Citation

  • Kozo Kiyota & Toshiyuki Matsuura, 2006. "Employment of MNEs in Japan: New Evidence," Discussion papers 06014, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:06014
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    Cited by:

    1. Kozo Kiyota & Toshiyuki Matsuura & Yoshio Higuchi, 2020. "Multinationals, intra‐firm trade and employment volatility," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 982-1015, August.
    2. Yamashita, Nobuaki & Fukao, Kyoji, 2010. "Expansion abroad and jobs at home: Evidence from Japanese multinational enterprises," Japan and the World Economy, Elsevier, vol. 22(2), pages 88-97, March.
    3. Kateřina Duspivová, 2011. "Role zahraničního vlastnictví z hlediska tvorby pracovních míst a fluktuace zaměstnanců [The Role of the Foreign Ownership in Job and Employee Flows]," Politická ekonomie, Prague University of Economics and Business, vol. 2011(6), pages 759-774.

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