Institutions, Deindustrialization, and Functional Income Distribution in Japan
Fukao, Kyoji; Perugini, Cristiano | November 2018
Abstract
We investigate the long-term drivers of the labor share in Japan using data from the Japanese Industrial Productivity database from 1970 to 2012. The descriptive and econometric results indicate that the decline in the labor share observed in Japan during the period of analysis was highly concentrated in the low-knowledge-intensity sectors, the employment share of which has increased remarkably. These sectors also experienced a strong increase in non-regular workers, who constitute a secondary segment of the labor market in Japan, characterized by low wages and very limited union coverage. The low level of protection of this group of workers and the increase in market power concentration have probably contributed to reducing the bargaining power of labor vis-à-vis employers and, consequently, the labor share.
Citation
Fukao, Kyoji; Perugini, Cristiano. 2018. Institutions, Deindustrialization, and Functional Income Distribution in Japan. © Asian Development Bank Institute. http://hdl.handle.net/11540/9365.Keywords
Development Economics
Regional Economic Development
Economic Impact
Asian Development Bank
Development
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Economies in transition
Economic agreements
Development indicators
ADB
Economic development
Gross domestic product
Employment
Economic forecast
Economic indicators
Growth models
Gross domestic product
Macroeconomics
Economic forecast
Social condition
Economic dependence
Economic assistance
Comparative economics
Regional economics
Economic development projects
Open price system
Price fixing
Price regulation
Consumer price indexes
Financial crisis
Labor economics
Regional economics
Turnover
Economic survey
Income Distribution
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