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Aggregate productivity slowdown and share of temporary workers

Author

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  • Nobuyuki Kanazawa

    (Faculty of Economics, Soka University)

Abstract

A dual labor market structure that comprises “permanent" and “temporary" jobs is common in many Continental European countries and Japan. Moreover, over the last 2 decades, the share of temporary workers in these countries has increased markedly. In this paper, I construct a search and matching model of a dual labor market with endogenous human capital accumulation and show that, in the presence of two different types of jobs with different rates of wage growth, slowing the aggregate productivity growth rate can prompt a substantial shift in the composition of jobs toward temporary jobs.

Suggested Citation

  • Nobuyuki Kanazawa, 2025. "Aggregate productivity slowdown and share of temporary workers," The Japanese Economic Review, Springer, vol. 76(1), pages 53-89, January.
    • Handle: RePEc:spr:jecrev:v:76:y:2025:i:1:d:10.1007_s42973-023-00148-z
    DOI: 10.1007/s42973-023-00148-z
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    More about this item

    Keywords

    Dual labor market; Growth; Unemployment; Temporary employment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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