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Declining Self-Employment in Japan Revisited: A Short Survey

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  • Ryo KAMBAYASHI

Abstract

Although the decline of self-employment has been a fundamental factor in the environment of the Japanese labor market for more than a quarter of a century, economic research on self-employment has remained sparse. This short survey aims to reboot the empirical research. First it summarizes two mainstream literatures: (a) the relation between the business cycle and being self-employed and (b) the entrepreneurship aspects of self-employment. The survey concludes that neither can fully explain the decline of self-employment in Japan. We then point to a relatively new literature on (c) the nonpecuniary rewards of self-employment. While this literature is still developing, it suggests that declining self-employment can be related to a decline in welfare. In particular, comparisons of the welfare implications of self-employment versus non-standard work will be important for deepening our understanding of contemporary Japanese society.

Suggested Citation

  • Ryo KAMBAYASHI, 2017. "Declining Self-Employment in Japan Revisited: A Short Survey," Social Science Japan Journal, University of Tokyo and Oxford University Press, vol. 20(1), pages 73-93.
    • Handle: RePEc:oup:sscijp:v:20:y:2017:i:1:p:73-93.
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    File URL: http://hdl.handle.net/10.1093/ssjj/jyw044
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    Cited by:

    1. Higo, Masahiro, 2023. "What caused the downward trend in Japan’s labor share?," Japan and the World Economy, Elsevier, vol. 67(C).

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