Labor Segmentation and the Outmigration Intention of Highly Skilled Foreign Workers: Evidence from Asian-born foreign workers in Japan

Yang Liu

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This study examines the determinants of the outmigration intentions of highly skilled foreign workers, i.e., workers who received post-secondary education, following conventional migration theories. Data come from a survey of firms and their foreign employees in Japan; most of whom were born in Asia, especially in China (77.4% of total observations). The results found that education level and average wage gaps did not significantly affect the outmigration decisions of Asian-born workers. However, the labor segmentation variable, which represents the firm's differentiation between foreign and native workers, has a significant estimated effect. Results indicate that Asian-born employees of firms that differentiate between foreigners and native workers are more likely to migrate away from Japan. The explanation could be that labor segmentation reduces foreign workers' expected future wage. Furthermore, the lifetime employment system in Japan could reduce the outmigration of Asian-born foreign workers, because the reduced future unemployment risk increases workers' expected wage from working in Japan. Moreover, a higher current job satisfaction could have a negative effect on Asian-born foreign workers' outmigration intention. Finally, among the control variables for the original migration motivations, Asian-born foreign workers who were motivated by the Japanese lifestyle tend to remain in Japan, while Asian-born foreign workers who were motivated by wages are more likely to migrate away in the future.

Pages: 25 pages
Date: 2018-05
New Economics Papers: this item is included in nep-lab, nep-mig and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/18e028.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:18028

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().