The Educational Upgrading of Japanese Youth, 1982-2007: Are Japanese Youth Ready for Structural Reforms?
51 Pages Posted: 27 May 2014
Date Written: May 21, 2014
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
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