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Constraints on the Level and Efficient Use of Labor in Japan

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  • Hiroshi Ono
  • Marcus E. Rebick

Abstract

We examine a number of personnel practices, laws and regulations that lower the supply of labor in the Japanese economy. Broadly speaking, there are two kinds of impediments, those that restrict the movement of labor between firms, and those that discourage women from participating to a greater extent. Using other OECD countries and especially the United States as a benchmark, we estimate that removal of these barriers would increase the productive labor supply in Japan by some 13 to 18 percent and thus could raise the potential growth rate of the Japanese economy by roughly 1% per annum over a ten-year period.

Suggested Citation

  • Hiroshi Ono & Marcus E. Rebick, 2003. "Constraints on the Level and Efficient Use of Labor in Japan," NBER Working Papers 9484, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:9484 Note: LS
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    References listed on IDEAS

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    1. Nakamura, Jiro & Ueda, Atsuko, 1999. "On the Determinants of Career Interruption by Childbirth among Married Women in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 13(1), pages 73-89, March.
    2. Marcus Rebick, 2000. "Japanese Labour Markets: Can we Expect Significant Change?," Economics Series Working Papers 21, University of Oxford, Department of Economics.
    3. Dekle, Robert, 2000. "Demographic Destiny, Per-Capita Consumption, and the Japanese Saving-Investment Balance," Oxford Review of Economic Policy, Oxford University Press, vol. 16(2), pages 46-60, Summer.
    4. Ariga,Kenn & Brunello,Giorgio & Ohkusa,Yasushi, 2010. "Internal Labour Markets in Japan," Cambridge Books, Cambridge University Press, number 9780521142748, March.
    5. Hashimoto, Masanori & Raisian, John, 1985. "Employment Tenure and Earnings Profiles in Japan and the United States," American Economic Review, American Economic Association, vol. 75(4), pages 721-735, September.
    6. Shimada, Haruo & Higuchi, Yoshio, 1985. "An Analysis of Trends in Female Labor Force Participation in Japan," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 355-374, January.
    7. Nobuko Nagase, 1997. "Wage Differentials and Labour Supply of Married Women in Japan: Part-time and Informal Sector Work Opportunities," The Japanese Economic Review, Japanese Economic Association, vol. 48(1), pages 29-42, January.
    8. Mincer, Jacob & Higuchi, Yoshio, 1988. "Wage structures and labor turnover in the United States and Japan," Journal of the Japanese and International Economies, Elsevier, vol. 2(2), pages 97-133, June.
    9. Hashimoto, Mansanori, 1993. "Aspects of Labor Market Adjustments in Japan," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 136-161, January.
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    Citations

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    Cited by:

    1. Lecznar, Jonathan & Lubik, Thomas A., 2017. "Real Rates and Consumption Smoothing in a Low Interest Rate Environment: The Case of Japan," Working Paper 17-8, Federal Reserve Bank of Richmond.
    2. Cargill, Thomas, 2004. "Japan’s Economic and Financial Stagnation and the Possibility of a Second Lost Decade," EIJS Working Paper Series 199, Stockholm School of Economics, The European Institute of Japanese Studies.
    3. Djavad Salehi-Isfahani & Russell D. Murphy, 2006. "Labor market flexibility and investment in human capital," Working Papers e06-5, Virginia Polytechnic Institute and State University, Department of Economics.
    4. Ono, Hiroshi, 2010. "Lifetime employment in Japan: Concepts and measurements," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 1-27, March.
    5. HAMAAKI Junya & HORI Masahiro & MAEDA Saeko & MURATA Keiko, 2010. "Is the Japanese employment system degenerating? Evidence from the Basic Survey on Wage Structure," ESRI Discussion paper series 232, Economic and Social Research Institute (ESRI).
    6. Kambayashi, Ryo & Kato, Takao, 2011. "Long-term Employment and Job Security over the Last Twenty-Five Years: A Comparative Study of Japan and the U.S," IZA Discussion Papers 6183, Institute for the Study of Labor (IZA).
    7. Ono, Hiroshi, 2004. "Are sons and daughters substitutable?: Allocation of family resources in contemporary Japan," Journal of the Japanese and International Economies, Elsevier, vol. 18(2), pages 143-160, June.

    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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