Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222692 
Year of Publication: 
2019
Series/Report no.: 
ADBI Working Paper Series No. 925
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
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.
Subjects: 
labor share
firm-level analysis
Japan
panel data
JEL: 
D33
F61
J30
L11
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
578.07 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.