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The Effect of Implicit Contracts on the Wages: Evidence from Japanese Labor Market

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Listed:
  • Koyo Miyoshi

    (Global Center of Excellence Program, Department of Economics, Keio University)

Abstract

This paper tests whether wages in Japanese Labor market are determined by current labor market condition or by past labor market conditions. following Beaudry and DiNardo (1991) which analyze U.S males. In contrast to previous findings for Canada and the U.S., implicit contract models with costless mobility are rejected for the Japanese labor market. Implicit contract models with costly mobility describe the Japanese labor market better than models with costless mobility and spot market models.

Suggested Citation

  • Koyo Miyoshi, 2008. "The Effect of Implicit Contracts on the Wages: Evidence from Japanese Labor Market," Keio/Kyoto Joint Global COE Discussion Paper Series 2008-038, Keio/Kyoto Joint Global COE Program.
    • Handle: RePEc:kei:dpaper:2008-038
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    File URL: https://ies.keio.ac.jp/old_project/old/gcoe-econbus/pdf/dp/DP2008-038.pdf
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    References listed on IDEAS

    as
    1. Paul J. Devereux & Robert A. Hart, 2007. "The Spot Market Matters: Evidence On Implicit Contracts From Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(5), pages 661-683, November.
    2. Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-688, August.
    3. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    4. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    5. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    6. James Ted McDonald & Christopher Worswick, 1999. "Wages, Implicit Contracts, and the Business Cycle: Evidence from Canadian Micro Data," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 884-913, August.
    7. Darren Grant, 2003. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from the National Longitudinal Surveys," ILR Review, Cornell University, ILR School, vol. 56(3), pages 393-408, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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