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The Impact of Globalization on Establishment-Level Employment Dynamics in Japan

Author

Listed:
  • Naomi Kodama

    (RIETI Institute of Economic Research Hitotsubashi University)

  • Tomohiko Inui

    (RIETI Preparatory Office for the Faculty of International Studies Gakushuin University)

Abstract

This study applies Davis, Haltiwanger, and Schuh's method (1996) to measure job creation/destruction rates of establishments in manufacturing firms using Japanese Economic Census data in 2006 and 2009. Results show that the decrease in net domestic employment arises mainly from firms without subsidiary companies, and non-expanding multinational enterprises. Domestic employment increases when the number of overseas subsidiaries increases. Both job creation/destruction rates of multinational enterprises are high, and the globalization of Japanese firms accelerates de-industrialization in Japan. The job creation and the net employment growth rates of establishments belonging to small-sized firms are lower than those in large-sized firms.

Suggested Citation

  • Naomi Kodama & Tomohiko Inui, 2015. "The Impact of Globalization on Establishment-Level Employment Dynamics in Japan," Asian Economic Papers, MIT Press, vol. 14(2), pages 41-65, Summer.
    • Handle: RePEc:tpr:asiaec:v:14:y:2015:i:2:p:41-65
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    Cited by:

    1. Masahiro Endoh, 2018. "The Effect of Import Competition on Wages in the Japanese Manufacturing Sector," Asian Economic Papers, MIT Press, vol. 17(1), pages 46-67, Winter/Sp.
    2. Woong Lee, 2017. "Trade Liberalization and the Aggregate Matching Function in India," Asian Economic Papers, MIT Press, vol. 16(1), pages 120-137, Winter/Sp.
    3. LIU Yang, 2017. "Effects of Wages and Job Productivity on Job Creation and Destruction: Evidence from Japanese division-level employment data," Discussion papers 17060, Research Institute of Economy, Trade and Industry (RIETI).
    4. NI Bin & KATO Hayato & LIU Yang, 2020. "Does It Matter Where You Invest? The Impact of FDI on Domestic Job Creation and Destruction," Discussion papers 20008, Research Institute of Economy, Trade and Industry (RIETI).
    5. Ni, Bin & Obashi, Ayako, 2021. "Robotics technology and firm-level employment adjustment in Japan," Japan and the World Economy, Elsevier, vol. 57(C).
    6. Liu, Yang, 2018. "Job creation and destruction in Japan: Evidence from division-level employment data," Journal of Asian Economics, Elsevier, vol. 58(C), pages 59-71.
    7. Keiko Ito & Kenta Ikeuchi, 2017. "Overseas Expansion and Domestic Business Restructuring in Japanese Firms," The Developing Economies, Institute of Developing Economies, vol. 55(2), pages 75-104, June.
    8. Zhao Chen & Tony Fang, 2016. "Chinese Returnees and High-Tech Sector Outward FDI: The Case of Changzhou," Asian Economic Papers, MIT Press, vol. 15(3), pages 195-215, Fall.
    9. Toshiyuki Matsuura, 2017. "Impact of Extensive and Intensive Margins of Foreign Direct Investment on Domestic Corporate Performance: Evidence from Japanese Automobile Parts Suppliers," Asian Economic Papers, MIT Press, vol. 16(2), pages 187-209, Summer.
    10. LIU Yang & NI Bin, 2018. "Outward Foreign direct investment and Firm-level Employment Dynamics in Japanese Manufacturing Firms," Discussion papers 18069, Research Institute of Economy, Trade and Industry (RIETI).
    11. Bin Ni & Hayato Kato & Yang Liu, 2023. "Does it matter where you invest? The impact of foreign direct investments on domestic job creation and destruction," The World Economy, Wiley Blackwell, vol. 46(1), pages 135-152, January.

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    More about this item

    Keywords

    globalization; employment opportunities; Japan; establishment-level; job creation; job destruction; domestic employment; subsidiaries; multinational enterprises; de-industrialization; growth rates;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • J0 - Labor and Demographic Economics - - General

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