The Japanese Employment System after the Bubble Burst: New Evidence

Ryo Kambayashi · Takao Kato

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Employment, Labor, and Gender Studies Labor Law and Work Dynamics Labor market dynamics and wage inequality

Abstract

This chapter examines the changes in Japan’s employment system after 1997 and illustrates how the sensitivity of employment to macroeconomic fluctuations steadily increase in the wake of economic stagnation. Using the latest Employment Status Survey, it analyzes the potential impact of the 1998 revision of the Labor Standards Law that allowed multi-year employment contracts, hence providing an alternative to lifetime employment. This change in the law had an impact on labor retention rates, particularly for female workers and workers in small and medium enterprises. The chapter also discusses other changes in the employment system, employee stock-ownership plans, downsizing, and unemployment in relation to economic growth.

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References

2013Toward an Economic Model of the Japanese Firm 1980The Importance of Lifetime Jobs in the U.S. Economy 1995The Productivity Effects of Employee Stock-Ownership Plans and Bonuses: Evidence from Japanese Panel Data 2002The Productivity Effects of Participatory Employment Practices: Evidence from New Japanese Panel Data 2010Brookings Institution 2001The End of Lifetime Employment in Japan?: Evidence from National Surveys and Field Research 1995Are Lifetime Jobs Disappearing? Job Duration in the United States: 1973-1993 2001On the job: is long-term employment a thing of the past?

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2012Determinants of the Timing of Downsizing Among Large Japanese Firms: Long-Term Employment Practices and Corporate Governance

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