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Internationalisation of Japanese Manufacturing Firms and the Relative Demand for Skilled Labour

In: Trade, Investment, Migration and Labour Market Adjustment

Author

Listed:
  • Keith Head

    (University of British Columbia)

  • John Ries

    (University of British Columbia)

Abstract

Thirty years ago Japanese firms concentrated almost all of their production in Japan. Since then, firms such as Sony and Toyota have joined the list of the world’s best-known multinational enterprises. Data on 1,052 Japanese manufacturing firms show that the overseas worker share of total employment rose from 5 per cent in 1970 to 30 per cent in 1989. Over the corresponding period, the nonproduction worker share of the wage bill for the median firm increased from 21 to 31 per cent. These figures suggest that the international activities of Japanese multinational enterprises (MNEs) shifted demand for labour in Japan towards nonproduction workers (including managers, product designers, and marketers) and away from less-skilled production workers. If true, one possible consequence would be increased wage inequality in Japan.

Suggested Citation

  • Keith Head & John Ries, 2002. "Internationalisation of Japanese Manufacturing Firms and the Relative Demand for Skilled Labour," International Economic Association Series, in: David Greenaway & Richard Upward & Katharine Wakelin (ed.), Trade, Investment, Migration and Labour Market Adjustment, chapter 9, pages 157-171, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-4039-2018-8_9
    DOI: 10.1057/9781403920188_9
    as

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