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How are hours worked and wages affected by labor regulations?: -The white-collar exemption and 'name-only managers' in Japan


  • KURODA, Sachiko


  • YAMAMOTO, Isamu


This paper examines whether overtime regulations have a significant impact on the hours worked and hourly wages, by focusing on so-called name-only managers in Japan. The term name-only manager refers to an employee who has essentially the same job description as other employees, but who is designated by the company as a manager to exempt them from overtime regulations. As the name implies, the only difference between those managers and other employees is in the applicable regulations on working time. Using longitudinal data, our main results from matching estimation indicate no significant difference in hourly wage or hours worked between the two groups. This implies that name-only managers’ base salaries are sufficiently higher to compensate for the loss of overtime pay, which supports the fixed-job model.

Suggested Citation

  • KURODA, Sachiko & YAMAMOTO, Isamu, 2009. "How are hours worked and wages affected by labor regulations?: -The white-collar exemption and 'name-only managers' in Japan," ISS Discussion Paper Series (series F) f147, Institute of Social Science, The University of Tokyo.
  • Handle: RePEc:itk:issdps:f147

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    References listed on IDEAS

    1. NAGAOKA Sadao & John P. WALSH, 2009. "Commercialization and Other Uses of Patents in Japan and the U.S.: Major findings from the RIETI-Georgia Tech inventor survey," Discussion papers 09011, Research Institute of Economy, Trade and Industry (RIETI).
    2. OWAN Hideo & NAGAOKA Sadao, 2011. "Intrinsic and Extrinsic Motivations of Inventors," Discussion papers 11022, Research Institute of Economy, Trade and Industry (RIETI).
    3. Henry Sauermann & Wesley M. Cohen, 2008. "What Makes Them Tick? Employee Motives and Firm Innovation," NBER Working Papers 14443, National Bureau of Economic Research, Inc.
    4. Giuri, Paola & Mariani, Myriam & Brusoni, Stefano & Crespi, Gustavo & Francoz, Dominique & Gambardella, Alfonso & Garcia-Fontes, Walter & Geuna, Aldo & Gonzales, Raul & Harhoff, Dietmar & Hoisl, Karin, 2007. "Inventors and invention processes in Europe: Results from the PatVal-EU survey," Research Policy, Elsevier, vol. 36(8), pages 1107-1127, October.
    5. Sadao Nagaoka, 2005. "Determinants of the Introduction of Stock Options by Japanese Firms: Analysis from the Incentive and Selection Perspectives," The Journal of Business, University of Chicago Press, vol. 78(6), pages 2289-2316, November.
    6. Hélène Dernis & Mosahid Khan, 2004. "Triadic Patent Families Methodology," OECD Science, Technology and Industry Working Papers 2004/2, OECD Publishing.
    7. Trejo, Stephen J, 1993. "Overtime Pay, Overtime Hours, and Labor Unions," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 253-278, April.
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    More about this item


    work hours; fixed-job model; fixed-wage model; employment protection; white-collar exemption;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity


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