Why Did Manufacturing Firms Increase the Number of Non-regular Workers in the 2000s? Does international trade matter?
This paper examines whether there is any link between export openness and the temporary workers ratio at firms. First, we investigate the effect of export openness on sales volatility using Japanese firm-level data. Next, we examine whether firms will increase the number of temporary workers as their sales volatility changes. Finally, we calculate to what extent changes in the temporary workers ratio are attributable to the sales volatility that is caused by exporting. We find statistically significant evidence that a foreign demand shock through exports affects the sales volatility at the firm level and that increases in the sales volatility induce the extensive use of temporary workers. Indeed, we find that those firms that incur a higher fixed employment cost make extensive use of temporary workers when the sales growth volatility rises. However, quantitative evaluation of the effects of exporting on the temporary workers ratio shows that the magnitude of these effects is quite small. We conclude that the impacts of firms' exporting status and export share on the temporary workers ratio are statistically significant but economically negligible in size. Thus, it is not appropriate to attribute the cause of increases in the temporary workers ratio to increased foreign shocks that occur because of exporting.
|Date of creation:||Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.rieti.go.jp/
More information through EDIRC
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.:
- MATSUURA Toshiyuki & SATO Hitoshi & WAKASUGI Ryuhei, 2011. "Temporary Workers, Permanent Workers, and International Trade: Evidence from Japanese firm-level data," Discussion papers 11030, Research Institute of Economy, Trade and Industry (RIETI).
- Bernard, A.B. & Jensen, J.B., 1994.
"Exporters, Skill Upgrading, and the Wage Gap,"
94-30, Massachusetts Institute of Technology (MIT), Department of Economics.
- Schank, Thorsten & Schnabel, Claus & Wagner, Joachim, 2007.
"Do exporters really pay higher wages? First evidence from German linked employer-employee data,"
Journal of International Economics,
Elsevier, vol. 72(1), pages 52-74, May.
- Thorsten Schank & Claus Schnabel & Joachim Wagner, 2006. "Do exporters really pay higher wages? First evidence from German linked employer-employee data," Working Paper Series in Economics 28, University of Lüneburg, Institute of Economics.
- Julian di Giovanni & Andrei A. Levchenko, 2009.
"Trade Openness and Volatility,"
The Review of Economics and Statistics,
MIT Press, vol. 91(3), pages 558-585, August.
- Julian di Giovanni & Andrei A. Levchenko, 2006. "Trade Openness and Volatility," Development Working Papers 219, Centro Studi Luca d\'Agliano, University of Milano.
- Andrei A. Levchenko & Julian di Giovanni, 2008. "Trade Openness and Volatility," IMF Working Papers 08/146, International Monetary Fund.
- Hirokatsu Asano & Takahiro Ito & Daiji Kawaguchi, 2011.
"Why Has the Fraction of Contingent Workers Increased? A Case Study of Japan,"
IDEC DP2 Series
1-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
- ASANO Hirokatsu & ITO Takahiro & KAWAGUCHI Daiji, 2011. "Why Has the Fraction of Contingent Workers Increased? A case study of Japan," Discussion papers 11021, Research Institute of Economy, Trade and Industry (RIETI).
- TANAKA Ayumu, 2012. "The Causal Effects of Exporting on Japanese Workers: A firm-level analysis," Discussion papers 12017, Research Institute of Economy, Trade and Industry (RIETI).
- Claudia M. Buch & Jörg Döpke & Harald Strotmann, 2009. "Does Export Openness Increase Firm-level Output Volatility?," The World Economy, Wiley Blackwell, vol. 32(4), pages 531-551, 04.
- YAMAMOTO Isamu & MATSUURA Toshiyuki, 2012.
"Effect of Work-Life Balance Practices on Firm Productivity: Evidence from Japanese firm-level panel data,"
12079, Research Institute of Economy, Trade and Industry (RIETI).
- 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 32, October.
- Diego Comin & Sunil Mulani, 2006. "Diverging Trends in Aggregate and Firm Volatility," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 374-383, May.
- MORIKAWA Masayuki, 2010. "Volatility, Nonstandard Employment, and Productivity: An empirical analysis using firm-level data," Discussion papers 10025, Research Institute of Economy, Trade and Industry (RIETI).
When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:13036. 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: (NUKATANI Sorahiko)
If references are entirely missing, you can add them using this form.