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Job Security and Work Force Adjustment: How Different are U.S. and Japanese Practices?

  • Katharine G. Abraham
  • Susan N. Houseman

This paper compares employment and hours adjustment in Japanese and U.S. manufacturing. In contrast to some previous work, we find that adjustment of total labor input to demand changes is significantly greater in the United States than in Japan; adjustment of employment is significantly greater in the United States, while that of average hours is about the same in the two countries. Although workers in Japan enjoy greater employment stability than do U.S. workers, we find considerable variability in the adjustment patterns across groups within each country. In the United States, most of the adjustment is borne by production workers. In Japan, female workers, in particular, bear a disproportionate share of adjustment.

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File URL: http://www.nber.org/papers/w3155.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3155.

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Date of creation: Jun 1990
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Publication status: published as Journal of the Japanese and International Economies, Vol. 3, No. 4, pp. 500-521, (December 1989).
Handle: RePEc:nbr:nberwo:3155
Note: LS
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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