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The Adjustment Speed of Employment at Foreign-Owned Firms

Author

Listed:
  • Yukako Murakami
  • Kyoji Fukao

Abstract

Is employment practice at foreign-owned firms different from that of Japan, the life-time employment system? Using firm level data of the Japanese manufacturing sector, this paper showed that the adjustment speed of employment at foreign-owned firms was slightly higher than at domestically-owned firms. This finding suggests that firm-specific skills are less important in foreign-owned firms than in Japanese firms.

Suggested Citation

  • Yukako Murakami & Kyoji Fukao, 2007. "The Adjustment Speed of Employment at Foreign-Owned Firms," Hi-Stat Discussion Paper Series d06-207, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hst:hstdps:d06-207
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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-207.pdf
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    Cited by:

    1. HIGUCHI Yoshio & KIYOTA Kozo & MATSUURA Toshiyuki, 2016. "Multinationals, Intrafirm Trade, and Employment Volatility," Discussion papers 16087, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Multinational firms; FDI; adjustment speed; employment; life-time employment system;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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