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Firm-Level Labor Demand for and Macroeconomic Increases in Non-Regular Workers in Japan

Hiroshi Teruyama (), Yasuo Goto () and Sebastien Lechevalier ()
Additional contact information
Hiroshi Teruyama: Institute of Economic Research, Kyoto University
Yasuo Goto: Faculty of Social Innovation, Seijo University

No 994, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: The purpose of this study is to account for the increase in non-regular workers, namely, part-time and dispatched workers, in the Japanese economy from the early 2000s. We use a firm-level panel dataset extracted from an administrative survey and distinguish between the short-run and long-run determinants of non-regular labor demand. Using the estimated parameters of the labor demand function, we decompose the rate of increase in the macroeconomic non-regular worker ratio into determinant factor contributions. Our major results can be summarized as follows. First, the firm-level determinants of the demand for part-time and dispatched workers significantly differ. Second, our results suggest that the creation of part-time jobs stimulated by the increased female labor supply plays an essential role in non-regular worker growth relative to direct demand-side factors. On the contrary, increases in both the elderly and the female labor supply have reduced demand for dispatched workers. Third, the microeconomic demand conditions for non-regular labor are widely dispersed among firms. Neither the micro demand factors examined in this study nor industrial differences can explain this heterogeneity.

Keywords: non-regular employment; part-time workers; dispatched workers; firm-level labor demand; female labor supply; Japan (search for similar items in EconPapers)
JEL-codes: J21 J23 J82 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2018-08
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Related works:
Journal Article: Firm-level labor demand for and macroeconomic increases in non-regular workers in Japan (2018) Downloads
Working Paper: Firm-Level Labor Demand for and Macroeconomic Increases in Non-Regular Workers in Japan (2018) Downloads
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