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Internal labor markets and gender inequality: Evidence from Japanese micro data, 1990–2009

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  • Kawaguchi, Akira

Abstract

This study investigate whether internal labor markets (ILMs) are associated with gender inequality in the Japanese workplace and whether their recent erosion has improved gender equality. Specifically, we used data over two decades from the Basic Surveys on Wage Structure to apply pooled ordinary least squares and fixed effect estimation to three indexes on gender equality and another three indexes of internal labor markets. We found that establishments with ILMs have significantly high gender inequality in their workplaces. That is, establishments with the lifetime employment system, the seniority wage systems, or the internal promotion system are likely to have large gender wage gaps, employ less female full-time workers, and have less female managers. However, these negative associations become much smaller or even disappear when we apply a fixed effect model using quasi-panel data. The erosion of ILMs may not be an important driving force of gender equalization, and establishments that have improved gender equality may not necessarily have moved away from ILMs.

Suggested Citation

  • Kawaguchi, Akira, 2015. "Internal labor markets and gender inequality: Evidence from Japanese micro data, 1990–2009," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 193-213.
    • Handle: RePEc:eee:jjieco:v:38:y:2015:i:c:p:193-213
    DOI: 10.1016/j.jjie.2015.04.004
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    Cited by:

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    2. Endoh, Masahiro, 2021. "Offshoring and working hours adjustments in a within-firm labor market," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    3. Hara, Hiromi, 2018. "The gender wage gap across the wage distribution in Japan: Within- and between-establishment effects," Labour Economics, Elsevier, vol. 53(C), pages 213-229.
    4. Kimitaka Nishitani & Akira Kawaguchi, 2022. "Mitigating Gender Inequality in the Workplace: Toward Sustainable Development Through Institutional Changes," Discussion Paper Series DP2022-07, Research Institute for Economics & Business Administration, Kobe University, revised May 2022.

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    More about this item

    Keywords

    Lifetime employment system; Seniority wage system; Internal promotion system; Female managers; Gender wage gap;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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