Wage and Productivity Differentials in Japan: The Role of Labor Market Mechanisms
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In this paper, the authors build a model where firms can choose between efficiency wages with endogenous effort and competitive wages, and show that it can replicate the Lost Decade in Japanese economy.Abstract:
This paper aims at explaining two stylized facts of the Lost Decade in Japan: rising wage inequalities and increasing firm-level productivity differentials. We build a model where firms can choose between efficiency wages with endogenous effort and competitive wages, and show that it can replicate those facts. Using Japanese microeconomic data, we find support for the existence of efficiency wages in one group of firms and competitive wages in the other group. Based on those results, a simulation shows that the share of firms using efficiency wages has declined, within sectors, during the Lost Decade, as predicted by the model.read more
Citations
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An Appraisal of Economic Research on Changes in Wage Inequality
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Inequality in Japan
TL;DR: In this paper, the authors analyzed the present income inequality in Japan by using Gini coefficients, the income share of the top and bottom income classes, and mobilities among income classes.
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The Long-Run Dynamics of the Labor Share in Japan
Kyoji Fukao,Cristiano Perugini +1 more
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Firm-level labor demand for and macroeconomic increases in non-regular workers in Japan
TL;DR: In this article, the authors decompose the rate of increase in the macroeconomic non-regular worker ratio into determinant factor contributions using a firm-level panel dataset extracted from an administrative survey and distinguish between the short run and long run determinants of nonregular labor demand using the estimated parameters of the labor demand function.
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Dynamic analysis of a disequilibrium macroeconomic model with dual labor markets
TL;DR: In this paper, the authors extend the general disequilibrium model of Malinvaud by using dual labor market theory and find that while the duality of the labor market expands an equilibrium regime in the short term, it does not always keep an equilibrium in the medium term.
References
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Efficiency Wage Models of the Labor Market: Equilibrium Unemployment as a Worker Discipline Device
Carl Shapiro,Joseph E. Stiglitz +1 more
TL;DR: In this article, the authors show that the information structure of employer-employee relationships, in particular the inability of employers to costlessly observe workers' on-the-job effort, can explain involuntary unemployment as an equilibrium phenomenon.
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Job Creation and Job Destruction in the Theory of Unemployment
TL;DR: In this paper, a job-specific shock process in the matching model of unemployment with non-cooperative wage behavior is modeled and the authors obtain endogenous job creation and job destruction processes and study their properties.
Book
Unemployment: Macroeconomic Performance and the Labour Market
TL;DR: In this article, the authors present a review of the macroeconomics of the post-war unemployment in OECD countries and discuss the policies to cut the job search duration and the structure of the job market.
Journal ArticleDOI
Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach.
TL;DR: In this paper, a semiparametric procedure is presented to analyze the effects of institutional and labor market factors on recent changes in the U.S. distribution of wages, including de-unionization and supply and demand shocks.
Journal ArticleDOI
Skill‐Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles
David Card,John DiNardo +1 more
TL;DR: The recent rise in wage inequality is usually attributed to skill-biased technical change (SBTC) associated with new computer technologies as discussed by the authors, and the evidence for this hypothesis, focusing on the implications of SBTC for overall wage inequality and for changes in wage differentials between groups.