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Firm-Level Labor Demand for and Macroeconomic Increases in Non-Regular Workers in Japan

Author

Listed:
  • Hiroshi Teruyama

    (Institute of Economic Research, Kyoto University)

  • Yasuo Goto

    (Faculty of Social Innovation, Seijo University)

  • Sebastien Lechevalier

    (Ecole des Hautes Etudes en Sciences Sociales)

Abstract

The purpose of this study is to account for the increase in non-regular workers, namely, part-time and dispatched workers, in the Japanese economy from the early 2000s. We use a firm-level panel dataset extracted from an administrative survey and distinguish between the short-run and long-run determinants of non-regular labor demand. Using the estimated parameters of the labor demand function, we decompose the rate of increase in the macroeconomic non-regular worker ratio into determinant factor contributions. Our major results can be summarized as follows. First, the firm-level determinants of the demand for part-time and dispatched workers significantly differ. Second, our results suggest that the creation of part-time jobs stimulated by the increased female labor supply plays an essential role in non-regular worker growth relative to direct demand-side factors. On the contrary, increases in both the elderly and the female labor supply have reduced demand for dispatched workers. Third, the microeconomic demand conditions for non-regular labor are widely dispersed among firms. Neither the micro demand factors examined in this study nor industrial differences can explain this heterogeneity.

Suggested Citation

  • Hiroshi Teruyama & Yasuo Goto & Sebastien Lechevalier, 2018. "Firm-Level Labor Demand for and Macroeconomic Increases in Non-Regular Workers in Japan," KIER Working Papers 994, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:994
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    References listed on IDEAS

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    Cited by:

    1. Kohara, Miki & Maity, Bipasha, 2021. "The Impact of Work-Life Balance Policies on the Time Allocation and Fertility Preference of Japanese Women," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    2. Timothy DESTEFANO & HANEDA Sho & KWON Hyeog Ug, 2019. "Determinants of Structural Adjustment and Employment Use in Japan: Firm Characteristics, Offshoring and Industrial Robotics," Discussion papers 19067, Research Institute of Economy, Trade and Industry (RIETI).
    3. Esteban-Pretel, Julen & Fujimoto, Junichi, 2020. "Non-regular employment over the life-cycle: Worker flow analysis for Japan," Journal of the Japanese and International Economies, Elsevier, vol. 57(C).
    4. Higo, Masahiro, 2023. "What caused the downward trend in Japan’s labor share?," Japan and the World Economy, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    non-regular employment; part-time workers; dispatched workers; firm-level labor demand; female labor supply; Japan;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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