Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

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

Hiroshi Ono () and Marcus Rebick
Additional contact information
Hiroshi Ono: Texas A&M University, Postal: Department of Sociology, 416 Academic Building, College Station, TX 77843-4351, USA
Marcus Rebick: Oxford University, Postal: Nissan Institute of Japanese Studies , 27 Winchester Road, Oxford OX2 6NA, UK

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

JEL-codes: J16; J31; J60; J68

26 pages, March 15, 2002

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

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