The Path to Higher Growth : Does Revamping Japan's Dual Labor Market Matter? /

This paper argues that Japan's excessive labor market duality can reduce Total Factor Productivity (TFP) due to a negative impact on non-regular workers' effort and on firms' incentives to train them. On the basis of cross-country empirical evidence, the paper proposes some reform opt...

Fuld beskrivelse

Bibliografiske detaljer
Hovedforfatter: Aoyagi, Chie
Andre forfattere: Ganelli, Giovanni
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2013.
Serier:IMF Working Papers; Working Paper ; No. 2013/202
Online adgang:Full text available on IMF
Beskrivelse
Summary:This paper argues that Japan's excessive labor market duality can reduce Total Factor Productivity (TFP) due to a negative impact on non-regular workers' effort and on firms' incentives to train them. On the basis of cross-country empirical evidence, the paper proposes some reform options. In particular, our analysis suggests that reducing the difference in employment protection between regular and non-regular workers would substantially reduce labor market duality in Japan. One reform consistent with these findings is the introduction of a Single Open Ended Contract for all newly hired workers. This reform could be complemented by a shift towards a model that combines labor market flexibility and security ('flexicurity') and by policies aimed at encouraging wage growth.
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Fysisk beskrivelse:1 online resource (26 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students