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Online ISSN : 2435-0753
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Volume 10
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  • Wage Profiles in the Japanese Dual Labor Market
    Hiroshi Teruyama, Hiroyuki Toda
    2016 Volume 10 Pages 1-20
    Published: 2016
    Released on J-STAGE: January 26, 2023
    DOIhttps://doi.org/10.34391/works.10.0_1
    RESEARCH REPORT / TECHNICAL REPORT FREE ACCESS
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    This study examines the dual structure of wage formation in regular and non-regular employment sectors in Japan. By using data from a series of surveys conducted in the metropolitan area during 2002–2014, sectoral-wage determination and sector-separation mechanism are estimated simultaneously. The estimated results reveal several facts in the new era of the Japanese dual labor market. While the regular workers’ wages rise with years of tenure and external experience, only the latter affects non-regular workers’ wages. The wage increases owing to experience are of similar magnitude between employment statuses except for female regular workers, and the firm-size and educational-background premiums exist only in the regular employees’ wages. The study also shows that the slopes of regular workers’ wage-tenure profiles have been stable over more than 10 years since the early 2000s.
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