A Microeconomic Analysis of the Declining Labor Share in Japan
Fukao, Kyoji; Ito, Koji; Perugini, Cristiano | February 2019
Abstract
The labor share in Japan has been declining significantly over the last three decades, accompanied by persistent stagnation and an unprecedented increase in economic inequalities. Since these dynamics are likely to be interrelated, understanding the drivers of the labor share might contribute significantly to the Japanese economic and policy debate. Surprisingly, the existing literature on the labor share in Japan is rather limited and confined to country or industry studies. We first attempt to analyze the drivers of the labor share in Japan at the firm level. To this aim, we employ a panel of manufacturing firms from the Basic Survey of Japanese Business Structure and Activities, spanning from 2001 to 2012. By means of panel data estimators, we show how, besides technological variables, firms’ labor share depends significantly on the share of regular workers, on the importance of firms’ international engagement, and on various institutional settings of the product and labor markets.
Citation
Fukao, Kyoji; Ito, Koji; Perugini, Cristiano. 2019. A Microeconomic Analysis of the Declining Labor Share in Japan. © Asian Development Bank Institute. http://hdl.handle.net/11540/9763.Keywords
Development Challenges
Asian Development Bank
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The Development Agenda
Staff Development
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Asian Development Bank
Results-Based Monitoring And Evaluation
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Project Evaluation
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Operations Evaluation
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Economic development
Standard of living
Trade development
Employment
Performance appraisal
Needs assessment
Input output analysis
ADB
Employment
Performance appraisal
Project failure
Project impact
Project appraisal
Career development
Vocational training
Contract Labor
Labor income
Labor policy
Manpower policy
Promotions
Career development
Job analysis
Participative management
Grievance procedures
Supervisors
Vocational guidance
Rural manpower policy
Career development
Applications for positions
Affirmative action programs
Labor turnover
Self-evaluation
Supervisors
Cumulative effects assessment
Participatory monitoring and evaluation
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