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Why Has the Fraction of Contingent Workers Increased?: A case study of Japan (Japanese)

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  • ASANO Hirokatsu
  • ITO Takahiro
  • KAWAGUCHI Daiji

Abstract

The fraction of contingent workers among all workers in Japan increased from 17% in 1986 to some 34% in 2008. This paper investigates the reason for this secular trend. Both demand and supply increases of contingent workers relative to regular workers are important, as evidenced by the stable relative wage to regular workers. The increase of female labor-force participation explains the supply increase, and the change of industrial composition explains the demand increase. These compositional changes explain about one quarter of the increase of contingent workers. Uncertainty surrounding product demand and the introduction of information and communication technologies increase firms' usage of contingent workers, but its quantitative effect is limited. These findings suggest that the declining importance of firm-specific human capital is a probable cause for the increase of contingent workers.

Suggested Citation

  • ASANO Hirokatsu & ITO Takahiro & KAWAGUCHI Daiji, 2011. "Why Has the Fraction of Contingent Workers Increased?: A case study of Japan (Japanese)," Discussion Papers (Japanese) 11051, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:rdpsjp:11051
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    File URL: https://www.rieti.go.jp/jp/publications/dp/11j051.pdf
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    Cited by:

    1. Aoyagi, Chie & Ganelli, Giovanni, 2015. "Does revamping Japan's dual labor market matter?," Economic Systems, Elsevier, vol. 39(2), pages 339-357.
    2. Davide Porcellacchia, 2016. "Wage-Price Dynamics and Structural Reforms in Japan," IMF Working Papers 16/20, International Monetary Fund.
    3. Machikita, Tomohiro & Sato, Hitoshi, 2016. "Temporary jobs and globalization," IDE Discussion Papers 585, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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