The Educational Upgrading of Japanese Youth, 1982-2007: Are Japanese Youth Ready for Structural Reforms?

51 Pages Posted: 27 May 2014  

Yoichi Arai

National Graduate Institute for Policy Studies (GRIPS)

Hidehiko Ichimura

Graduate School of Economics, University of Tokyo

Daiji Kawaguchi

University of Tokyo - Graduate School of Economics

Date Written: May 21, 2014

Abstract

Are Japanese youth ready for the structural reforms proposed as a supply-side policy of Abenomics? To answer this question, we assess how well Japanese youth have coped with the labor market's long-term structural changes, induced primarily by deepening interdependence with emerging economies and rapid technological progress over the last three decades. We feature the role of educational upgrading on the labor-market outcomes of youth between the ages of 25 and 29, using six waves of micro data from the Employment Status Survey spanning from 1982 to 2007. The analysis demonstrates that the secular demand growth for skilled labor has been met by the educational upgrading of youth through the expansion of tertiary education, including education in vocational schools. The educational upgrading of Japanese youth has helped keep the youth employment rate relatively high compared with that of other developed countries, even in the long-term economic malaise.

Keywords: Tertiary Education, Youth Employment, Japan

JEL Classification: I23, J21

Suggested Citation

Arai, Yoichi and Ichimura, Hidehiko and Kawaguchi, Daiji, The Educational Upgrading of Japanese Youth, 1982-2007: Are Japanese Youth Ready for Structural Reforms? (May 21, 2014). Tokyo Center for Economic Research (TCER) Paper No. E-78. Available at SSRN: https://ssrn.com/abstract=2442105

Yoichi Arai

National Graduate Institute for Policy Studies (GRIPS) ( email )

7-22-1 Roppongi, Minato-Ku
Tokyo 106-8677, Tokyo 106-8677
Japan

Hidehiko Ichimura

Graduate School of Economics, University of Tokyo ( email )

7-3-1 Hongo Bunkyo-ku
Tokyo 113-0033
Japan

Daiji Kawaguchi (Contact Author)

University of Tokyo - Graduate School of Economics ( email )

Tokyo
Japan

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