Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80704
Authors: 
Kawaguchi, Daiji
Murao, Tetsushi
Kambayashi, Ryo
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Paper 7443
Abstract: 
This paper examines the effects of upgrading product quality standards on product and professional labor-market equilibriums when both markets are regulated. The Japanese government revised the Building Standards Act in June 2007, requiring a stricter review process for admitting the plans of large-scale buildings. This regulatory change increased the wage of certified architects in Tokyo by 30% but did not increase their total hours worked because of an inelastic labor supply. The stricter quality standards created a quasi-rent for certified architects and owners of condominiums at a cost to consumers. Evidence suggests that the stricter quality standards increased the transaction price of used condominiums by 15% in the Tokyo metropolitan area.
Subjects: 
labor market of professionals
product standard
safety regulation
incidence of government regulation
JEL: 
J44
Document Type: 
Working Paper

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