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Has Japan's Long-term employment Practice Survived? New Evidence Emerging Since the 1990s

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  • Satoshi Shimizutani
  • Izumi Yokoyama

Abstract

What happened to the traditional, long-term employment practices in Japan after the 1990s has remained unexplored. We take advantage of a micro data set from the Basic Survey on Wage Structure to provide new evidence regarding the years of tenure for Japanese male workers after a decade-long recession. While the practice of long-term employment is still alive among the workers who are already in the system, the proportion of workers who are not covered by the system has increased. These ongoing phenomena contribute to the bipolarization in the Japanese labor market.

Suggested Citation

  • Satoshi Shimizutani & Izumi Yokoyama, 2006. "Has Japan's Long-term employment Practice Survived? New Evidence Emerging Since the 1990s," Hi-Stat Discussion Paper Series d06-182, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hst:hstdps:d06-182
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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-182.pdf
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    References listed on IDEAS

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    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    2. Brunello, Giorgio & Ariga, Kenn, 1997. "Earnings and seniority in Japan: A re-appraisal of the existing evidence and a comparison with the UK," Labour Economics, Elsevier, vol. 4(1), pages 47-69, March.
    3. 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.
    4. Ono, Hiroshi, 2010. "Lifetime employment in Japan: Concepts and measurements," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 1-27, March.
    5. Marcus Rebick, 2000. "Japanese Labour Markets: Can we Expect Significant Change?," Economics Series Working Papers 21, University of Oxford, Department of Economics.
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    Citations

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    Cited by:

    1. Shimizutani, Satoshi & Oshio, Takashi, 2009. "New Evidence on Initial Transition from Career Job to Retirement in Japan," PIE/CIS Discussion Paper 430, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    2. Shimizutani, Satoshi, 2011. "A new anatomy of the retirement process in Japan," Japan and the World Economy, Elsevier, vol. 23(3), pages 141-152.
    3. Nobuko Nagase & Mary C. Brinton, 2017. "The gender division of labor and second births: Labor market institutions and fertility in Japan," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(11), pages 339-370, January.
    4. Shimizutani, Satoshi & Oshio,Takashi, 2008. "The Labor Supply Effect of Social Security Earnings Test Revisited: New Evidence from its Elimination and Revival in Japan," PIE/CIS Discussion Paper 410, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    5. Junichi Fujimoto, 2008. "Implications of General and Specific Productivity Growth in a Matching Model," 2008 Meeting Papers 584, Society for Economic Dynamics.
    6. Satoshi Shimizutani, 2013. "Social Security Earnings Test and the Labour Supply of the Elderly: New Evidence from Unique Survey Responses in Japan," The Japanese Economic Review, Japanese Economic Association, vol. 64(3), pages 399-413, September.
    7. Ryo Kambayashi & Daiji Kawaguchi & Izumi Yokoyama, 2008. "Wage distribution in Japan, 1989-2003," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1329-1350, November.
    8. Junya Hamaaki & Masahiro Hori & Saeko Maeda & Keiko Murata, 2012. "Changes in the Japanese Employment System in the Two Lost Decades," ILR Review, Cornell University, ILR School, vol. 65(4), pages 810-846, October.
    9. Takashi Oshio & Satoshi Shimizutani & Akiko Sato Oishi, 2010. "Does Social Security Induce Withdrawal of the Old from the Labor Force and Create Jobs for the Young? The Case of Japan," NBER Chapters,in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 217-241 National Bureau of Economic Research, Inc.
    10. Okamoto, Hisashi & Matsuura, Tsukasa, 2015. "The Influence of Corporate Governance on Long-term Employment:A Study Using Data on Japanese Listed Firms," MPRA Paper 64561, University Library of Munich, Germany.
    11. HAMAAKI Junya & HORI Masahiro & MAEDA Saeko & MURATA Keiko, 2010. "Is the Japanese employment system degenerating? Evidence from the Basic Survey on Wage Structure," ESRI Discussion paper series 232, Economic and Social Research Institute (ESRI).
    12. 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 for the Study of Labor (IZA).
    13. Robert Clark & Rikiya Matsukura & Naohiro Ogawa, 2014. "Retirement Transitions In Japan," Discussion Papers 14-013, Stanford Institute for Economic Policy Research.
    14. Shimizutani, Satoshi & Oshio, Takashi, 2013. "Revisiting the labor supply effect of social security earnings test: New evidence from its elimination and reinstatement in Japan," Japan and the World Economy, Elsevier, vol. 28(C), pages 99-111.

    More about this item

    Keywords

    long-term employment practice; Japan; Oaxaca-Blinder decomposition; DiNardo-Fortin-Lemieux decomposition;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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