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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

    as
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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;

    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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