Dynamic Labor Scheduling in Japan: Underemployment Reduction and Karoshi Avoidance Through Optimal Tracking Control

David Hudgins and Deniz Gevrek ()

Global Economic Review, 2016, vol. 45, issue 2, 134-169

Abstract: This study uses an optimal tracking control framework to design a dynamic labor schedule that determines the optimal balance between labor, leisure, and consumption. The analysis generates proactive policy rules through deterministic, stochastic, robust, and compromise specifications of a Linear-Quadratic tracking model. Our model allows workers to optimally transition away from karoshi overwork and away from underemployment. Our study provides guidance for labor scheduling by quantitatively addressing the conflicts between health, work-life balance (WLB), and productivity. In Japan, this approach can be utilized by discussion bases and WLB initiatives, whereas the previous regulatory proposals for karoshi relief have created adversarial relationships that have not merged firm objectives with worker motives.

Date: 2016
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DOI: 10.1080/1226508X.2016.1156008

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