NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Constraints on the Level and Efficient Use of Labor in Japan

Hiroshi Ono, Marcus E. Rebick

NBER Working Paper No. 9484
Issued in February 2003
NBER Program(s):   LS

We examine a number of personnel practices, laws and regulations that lower the supply of labor in the Japanese economy. Broadly speaking, there are two kinds of impediments, those that restrict the movement of labor between firms, and those that discourage women from participating to a greater extent. Using other OECD countries and especially the United States as a benchmark, we estimate that removal of these barriers would increase the productive labor supply in Japan by some 13 to 18 percent and thus could raise the potential growth rate of the Japanese economy by roughly 1% per annum over a ten-year period.

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Document Object Identifier (DOI): 10.3386/w9484

Published: Hiroshi Ono & Marcus Rebick, 2003. "Constraints on the Level and Efficient Use of Labor," NBER Chapters, in: Structural Impediments to Growth in Japan, pages 225-258 National Bureau of Economic Research, Inc.

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