Temporary jobs and globalization
Tomohiro Machikita and
Hitoshi Sato
No 585, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)
Abstract:
Deregulation of the use of temporary workers in 2004 (the Worker Dispatching Act of 2004) has been regarded as an important reason for the recent rise of temporary workers in Japan. However, the shift from permanent to temporary workers began long before. This paper empirically explores links between the shift from permanent to temporary workers in the Japanese manufacturing sector and economic globalization, using industry-level data. We find that outsourcing is positively correlated with the replacement of permanent workers with temporary workers in domestic production. In addition, we find that industries losing world share of value added tend to decrease the employment of permanent workers. Industries with higher exports or imports are aggressive in using temporary workers, which suggests the role of temporary workers as an employment buffer.
Keywords: Labor market; Employment; Temporary workers; Permanent workers; FDI; Outsourcing; International trade (search for similar items in EconPapers)
JEL-codes: F16 J23 (search for similar items in EconPapers)
Date: 2016-03-01
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Citations: View citations in EconPapers (2)
Published in IDE Discussion Paper = IDE Discussion Paper, No. 585. 2016-03-01
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