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Constraints on the Level and Efficient Use of Labor in Japan

  • Hiroshi Ono
  • Marcus E. Rebick

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9484.

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Date of creation: Feb 2003
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Publication status: published as Hiroshi Ono & Marcus Rebick, 2003. "Constraints on the Level and Efficient Use of Labor," NBER Chapters, in: Structural Impediments to Growth in Japan, pages 225-258 National Bureau of Economic Research, Inc.
Handle: RePEc:nbr:nberwo:9484
Note: LS
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  1. 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.
  2. 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 S355-74, January.
  3. Hashimoto, Mansanori, 1993. "Aspects of Labor Market Adjustments in Japan," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 136-61, January.
  4. 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.
  5. 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, 01.
  6. Rebick, M., 2000. "Japanese Labour Markets: Can we Expect Significant Change?," Economics Series Working Papers 9921, University of Oxford, Department of Economics.
  7. repec:cup:cbooks:9780521642408 is not listed on IDEAS
  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, 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 721-35, September.
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