Abstract
Many Japanese workers do not use all of the paid holidays they are entitled to take. One reason is the economic significance of not using paid holidays, that not taking paid holidays leads to an increase in future income. Although it is pointed out that in theory taking paid holidays adversely influences future income in the long run, are disparities in compensation really occurring in the actual labor market? To test this proposition, this paper makes a dynamic empirical analysis with regard to disparities in future income as a result of using paid holidays using the data on individuals available in the “Japanese Panel Survey of Consumers (JPSC)” conducted by the Institute for Research on Household Economics. The survey base includes both males and females but the male case was not analyzed. As a result of the analysis, it was found that there was no compensation disadvantage arising from the number of paid holidays taken.
