Wage and Productivity Differentials in Japan: The Role of Labor Market Mechanisms

Kalantzis, Yannick; Kambayashi, Ryō; Lechevalier, Sébastien

doi:10.1111/j.1467-9914.2012.00555.x

Cited by 11 publications

(16 citation statements)

References 36 publications

(51 reference statements)

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“…First, the increasing heterogeneity of the firms' employment policies may have an impact in term of (employment security and wages) inequalities from the point of view of workers. It may be an explanation of the increasing inequalities for regular workers, which are observed on the Japanese labor market since at least the beginning of the 1990s (Kalantzis et al, 2012). This point should be carefully studied.…”

Section: Resultsmentioning

confidence: 96%

“…It may explain why there is no agreement about the nature of the current evolution characterizing the Japanese economic system. Second, this increasing diversity of firms may be the background of rising inequalities, as shown for example by Kalantzis, Kambayashi & Lechevalier (2012), who link productivity dispersion to wage inequalities in the case of Japan. What has been just said in general terms is particularly important in the case of the evaluation of changes on the Japanese labor market. From the mid-1990s, there have been several studies questioning the "end of the Japanese employment system" (Sako & Sato, 1997;Genda & Rebick, 2000;Kato, 2001;Rebick, 2005, among many others).…”

Section: Introductionmentioning

confidence: 99%

“…In this paper, we argue that this is because previous studies have not enough drawn conclusions from the increasing diversity of firms. To take only one example, the rise of non-regular workers is concentrated in some establishments or firms as shown by an analysis of the Diversification of Employment Form survey (Lechevalier, 2014) or of a matching between the Employment Trend Survey and the Basic Survey on Wage Structure (Kalantzis, Kambayashi and Lechevalier, 2012). The purpose of this paper is to study the evolving diversity of employment practices at the firm level in focusing on downsizing employment adjustment.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

How Did the Japanese Employment System Change Investigating the Heterogeneity of Downsizing Practices Across Firms

et al. 2018

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Beyond the general issue of institutional change at the aggregate level, some studies have shown that the diversity of Japanese firms has increased since the late 1990s, both in terms of performance and organization. This paper contributes to this literature by investigating the evolving employment practices at the firm level. In mobilizing a database of listed manufacturing firms, we focus on the evolution of the speed of downsizing between the 1990s and the 2000s. A specificity of our paper is that we do not limit our analysis to the introduction of individual effects but we rather resort to a Bayesian estimation procedure, which yields to (firm-specific) individual forecasts of the parameters of the adjustment process modelled with random coefficients. The first major result we get is a decreasing average speed of downsizing, contrary to what is found in a simple estimation with individual effects. Second, we confirm the increasing heterogeneity of Japanese firms between the 1990s and the 2000s, through a rising dispersion of the speed of downsizing. Third, we are able, from a descriptive viewpoint to identify some characteristics of firms with different speed of downsizing.

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Section: Resultsmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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How Did the Japanese Employment System Change Investigating the Heterogeneity of Downsizing Practices Across Firms

et al. 2018

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“…In particular, private sector's wage systems have shown that there is a shift toward performance‐ or ability‐based systems. Thus, MAA's pension with final salary system was not acceptable by private sector employees (Kalantzis et al ). Thus, the 1985 revision abolished the final salary system.…”

Section: History Of Maa Pension Reformmentioning

confidence: 99%

The Reform of Mutual Aid Associations in Japan: Civil Service Employee Pension Reform in 2012

Yamamoto

2015

Asian Soc Wrk & Pol Rev

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Civil service employee pension reform began by removing non‐clerical work from the main body of the Mutual Aid Association (MAA) pension system. Further changes were based on administrative reform and pension jealousy. In particular, the Nakasone cabinet's administrative reform privatized the non‐clerical sector. Before the 1979 reform, the pensionable age was 55 for the MAA and 60 for the Employee Pension Insurance (EPI) scheme. The MAA pension benefit formula adopted the final salary system, which was larger than the average lifetime salary calculation used for EPI benefits. The final salary system was abolished during the 1986 reform. Public employee criticism over “Amakudari” led to further civil service employee remuneration reform in 2005. In 2007, the Social Insurance Agency pension record scandal led to a change of government by 2009. The biggest reform of the MAA pension system was the abolishment of the occupational portion of the pension, a compromise between the government and unions. We project that this compromise will cost 22 trillion yen over 90 years old. After 2055, the newly established MAA pension scheme will be abolished; thus the public pension may finally be sustainable.

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“…This duality is empirically analyzed by using a switching regression model inDickens and Lang (1985),Sakamoto and Chen (1991), andIshiwaka (1999) Kalantzis, Kambayashi, and Lechevalier (2012). shows the existence of this duality in the Lost Decade in Japan 3 Note that the duality in the labor market has another effect on macroeconomic models: Income distribution among classes.…”

mentioning

confidence: 99%

Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets

Ogawa

2019

Metroeconomica

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We extend the general disequilibrium model of Malinvaud (1980) by using dual labor market theory. By considering two tiers of workers, we find that while the duality of the labor market expands an equilibrium regime in the short term, it does not always keep an equilibrium in the medium term. In the medium term, the business cycle converges toward a disequilibrium regime unless the goods market is potentially in equilibrium. Employment and wages at the steady state are affected by the size of the government expenditure, and the stability of wage bargaining is only a sufficient condition of the local stability of our dynamic system. Therefore, involuntary unemployment can be remedied only when goods demand is sufficiently large.

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Wage and Productivity Differentials in Japan: The Role of Labor Market Mechanisms

Cited by 11 publications

References 36 publications

How Did the Japanese Employment System Change Investigating the Heterogeneity of Downsizing Practices Across Firms

How Did the Japanese Employment System Change Investigating the Heterogeneity of Downsizing Practices Across Firms

The Reform of Mutual Aid Associations in Japan: Civil Service Employee Pension Reform in 2012

Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets

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