Why Has the Fraction of Nonstandard Workers Increased? A Case Study of Japan

30 Pages Posted: 6 Aug 2013

See all articles by Hirokatsu Asano

Hirokatsu Asano

Asia University

Daiji Kawaguchi

University of Tokyo - Graduate School of Economics

Takahiro Ito

Hiroshima University

Date Written: September 2013

Abstract

This paper explains the secular increase of nonstandard workers in Japan, whose share of employment increased from 17 to 34% between 1986 and 2008. Changes in labor force and industrial compositions account for one quarter of the increase of nonstandard workers. Product‐demand fluctuation and the introduction of information and communication technologies increased firms' usage of nonstandard workers, but its quantitative effects are limited. The increase of nonstandard workers was concentrated among new entrants to the labor market, male workers of younger cohorts, and female workers of all cohorts, suggesting that the declining importance of the long‐term employment relationship is a major cause for the increase of nonstandard workers.

Suggested Citation

Asano, Hirokatsu and Kawaguchi, Daiji and Ito, Takahiro, Why Has the Fraction of Nonstandard Workers Increased? A Case Study of Japan (September 2013). Scottish Journal of Political Economy, Vol. 60, Issue 4, pp. 360-389, 2013, Available at SSRN: https://ssrn.com/abstract=2306458 or http://dx.doi.org/10.1111/sjpe.12015

Daiji Kawaguchi

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

Takahiro Ito

Hiroshima University

739-0046
Japan

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