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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 500:
Impediments to the Productive Employment of Labor in Japan

Hiroshi Ono () and Marcus Rebick

Abstract: We examine a number of personnel practices, laws and regulations that lower the supply of labor in the Japanese economy. Broadly speaking, there are two kinds of impediments, those that restrict the movement of labor between firms, and those that discourage women from participating to a greater extent. Using other OECD countries and especially the United States as a benchmark, we estimate that removal of these barriers would increase the productive labor supply in Japan by some 13 to 18 percent and thus could raise the potential growth rate of the Japanese economy by roughly 1% per annum over a ten-year period.

Keywords: labor mobility; gender; (follow links to similar papers)

JEL-Codes: J16; J31; J60; J68; (follow links to similar papers)

26 pages, March 15, 2002

A later version of the paper is also available as NBER working paper no. 9484, February 2003.

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This paper is published as:
Ono, Hiroshi and Marcus Rebick, (2003), 'Constraints on the Level and Efficient Use of Labor' in Blomstrom, Magnus, Jennifer Corbett, Fumio Hayashi and Anil Kashyap (eds.) Structural Impediments to Japan's Economic Growth, pages 225-257, NBER/University of Chicago Press, ISBN 0-226-06021-7.



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