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How did the Japanese Employment System Change?Investigating the Heterogeneity of Downsizing Practices across Firms

Author

Listed:
  • Sebastien Lechevalier

    () (Ecole des Hautes Etudes en Sciences Sociales, Paris)

  • Cyrille Dossougoin

    (University of Orleans)

  • Christophe Hurlin

    (University of Orleans)

  • Satoko Takaoka

    (Kobe University)

Abstract

Beyond the general issue of institutional change at the aggregate level, some studies have shown that the diversity of Japanese firms has increased since the late 1990s, both in terms of performance and organization. This paper contributes to this literature by investigating the evolving employment practices at the firm level. In mobilizing a database of listed manufacturing firms, we focus on the evolution of the speed of downsizing between the 1990s and the 2000s. A specificity of our paper is that we do not limit our analysis to the introduction of individual effects but we rather resort to a Bayesian estimation procedure, which yields to (firm-specific) individual forecasts of the parameters of the adjustment process modelled with random coefficients. The first major result we get is a decreasing average speed of downsizing, contrary to what is found in a simple estimation with individual effects. Second, we confirm the increasing heterogeneity of Japanese firms between the 1990s and the 2000s, through a rising dispersion of the speed of downsizing. Third, we are able, from a descriptive viewpoint to identify some characteristics of firms with different speed of downsizing.

Suggested Citation

  • Sebastien Lechevalier & Cyrille Dossougoin & Christophe Hurlin & Satoko Takaoka, 2014. "How did the Japanese Employment System Change?Investigating the Heterogeneity of Downsizing Practices across Firms," KIER Working Papers 883, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:883
    as

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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP883.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Teruyama, Hiroshi & Goto, Yasuo & Lechevalier, Sebastien, 2018. "Firm-level labor demand for and macroeconomic increases in non-regular workers in Japan," Japan and the World Economy, Elsevier, vol. 48(C), pages 90-105.

    More about this item

    Keywords

    Corporate Heterogeneity. Japanese Employment System. Speed pf Employment Adjustment. Downsizing. Panel. Random coefficient model. Bayesian estimation;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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