Wage curve in dual labor markets: cross-sectional evidence from Japan

Authors

  • Kazuyuki Inagaki Nagoya City University

DOI:

https://doi.org/10.17811/ebl.4.2.2015.51-56

Abstract

We find that the wage-unemployment relationship in Japan depends on the degree of labor market duality. The unemployment elasticity of wages is negative for the group with a lower degree of duality and, therefore, the Japanese wage curve holds for that group. However, the unemployment elasticity of wages is positive for the group with a higher degree of duality. This result is also valid as explained by the theory of compensating differentials. Therefore, the existence of dual labor market can affect the wage-unemployment relationship in developed countries such as Japan.

References

Baltagi, B.H., Başkaya, Y.S. and Hülagü, T. (2013) How different are the wage curves for formal and informal workers? Evidence from Turkey, Papers in Regional Science, 92, 271–283.

Baltagi, B.H., Blien U. and Wolf, K. (2009) New evidence on the dynamic wage curve for Western Germany: 1980–2004, Labour Economics, 16, 47–51.

Baltagi, B.H., Blien U. and Wolf, K. (2012) A dynamic spatial panel data approach to the German wage curve. Economic Modelling, 29, 12–21.

Berg, J. and Contreras, D. (2004) Political-economic regime and the wage curve: Evidence from Chile, 1957–96, International Review of Applied Economics, 18, 151–165.

Blanchflower, D.G. and Oswald, A.J. (1994) The Wage Curve. MIT Press, Cambridge, MA.

Blanchflower, D.G. and Oswald, A.J. (2005) The wage curve reloaded. NBER Working Paper 11338.

Deller, S., 2011. Spatial heterogeneity in the wage curve, Economics Letters, 113, 231–233.

Shilov, A. and Möller, J. (2009) The wage curve in Russia, 1995–2005, Economics Letters, 102, 90–92.

OECD (2013) OECD Economic Surveys Japan, OECD.

Jones, R.S. and Urasawa, S. (2011) Labour market reforms in Japan to improve growth and equity. OECD Economic Department Working Papers, No. 889.

Hansen, B.E. (1999) Threshold effects in non-dynamic panels: Estimation, testing, and inference, Journal of Econometrics 93, 345–368.

Hansen, B.E. (2000) Sample splitting and threshold estimation, Econometrica 68, 575–603.

Harris, J.R. and Todaro, M.P. (1970) Migration, unemployment and development: A two- sector analysis, American Economic Review 60, 126–142.

Ramos, R., Duque, J.C. and Surinach, J. (2010) Is the wage curve formal or informal? Evidence for Colombia, Economics Letters, 109, 63–65.

Downloads

Published

30-06-2015

How to Cite

Inagaki, K. (2015). Wage curve in dual labor markets: cross-sectional evidence from Japan. Economics and Business Letters, 4(2), 51–56. https://doi.org/10.17811/ebl.4.2.2015.51-56

Issue

Vol. 4 No. 2 (2015): June

Section

Articles

License

The works published in this journal are subject to the following terms:

1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.

© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press

2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.

3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of  the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.