The Effect of Wages on Employment in Japan

Kuramitsu Muramatsu

Japanese Economy, 1987, vol. 15, issue 3, 29-57

Abstract: 1. Introduction: This article is intended to explore the extent of effect of wages on employment in Japan, based on a survey of the results of major studies of the employment function in Japan. The method of analysis that is followed is the one used by Hamermesh (1976) in his survey of American studies on the same subject. The actual method applied here is somewhat crude: we do not pay too much attention to theory and estimation method employed in these studies but instead concentrate on estimation results segregating wage coefficients and production coefficients in the employment function. This crude approach should suffice for our purpose of finding out the approximate size of the effect of wages on employment, rather than determining which estimating method is more desirable.

Date: 1987
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DOI: 10.2753/JES1097-203X150329

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