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Job Security Laws and Structural Change in the Japanese Labor Market

Author

Listed:
  • Kenji Azetsu

    (Graduate School of Economics, Kobe University)

  • Mototsugu Fukushige

    (Graduate School of Economics, Osaka University)

Abstract

There are a number of indications that Japanese job security laws have been relaxed since the end of the 1990s. The purpose of this paper is to establish causality between job security laws and firing costs in the Japanese labor market. The analysis first investigates when and how firing costs changed, and then compares the timing of these changes in firing costs with those of job security laws. The results indicate that gradual changes in firing costs began in about 1992, lagging one or two years behind the bursting of the bubble economy, while job security laws started to change towards the end of the 1990s.

Suggested Citation

  • Kenji Azetsu & Mototsugu Fukushige, 2005. "Job Security Laws and Structural Change in the Japanese Labor Market," Discussion Papers in Economics and Business 05-31, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0531
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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0531.pdf
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    References listed on IDEAS

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    4. Kenji Azetsu & Mototsugu Fukushige, 2009. "The estimation of asymmetric adjustment costs for the number of workers and working hours - empirical evidence from Japanese industry data," Applied Economics Letters, Taylor & Francis Journals, vol. 16(10), pages 995-998.
    5. Goux, Dominique & Maurin, Eric & Pauchet, Marianne, 2001. "Fixed-term contracts and the dynamics of labour demand," European Economic Review, Elsevier, vol. 45(3), pages 533-552, March.
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    7. Nickell, S.J., 1987. "Dynamic models of labour demand," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 9, pages 473-522, Elsevier.
    8. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
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    Cited by:

    1. Kazuyuki Inagaki, 2012. "Labor adjustment in the Japanese health care industry: some empirical evidence," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 173-177, February.

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    More about this item

    Keywords

    Adjustment costs for labor; Gradual switching model; Job security laws;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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