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Labour market regimes, technology and rent-sharing in Japan

Author

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  • Fukao, Kyoji
  • Perugini, Cristiano
  • Pompei, Fabrizio
Abstract
This paper focuses on rent-sharing as a potential driver of wage patterns in different labour market and technological regimes. The extent and drivers of the sensitivity of wages to rents have recently regained the attention of scholars and public opinion in developed countries but remain under-researched with respect to Japan. To fill this gap, we investigate the factors shaping the heterogeneity of rent-sharing based on detailed industry-level data from over four decades (1970–2012) on the Japanese economy, where technological dynamics have been paralleled by labour market evolutions similar to many advanced OECD countries (deunionization, declines in standard employment and in the role of seniority). Our results, which account for potential endogeneity issues, indicate that such labour market developments negatively affect the bargaining power of regular workers, weakening their capacity to appropriate rents; conversely, more advanced technologies help regular workers gain higher rents.

Suggested Citation

  • Fukao, Kyoji & Perugini, Cristiano & Pompei, Fabrizio, 2022. "Labour market regimes, technology and rent-sharing in Japan," Economic Modelling, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:ecmode:v:112:y:2022:i:c:s026499932200102x
    DOI: 10.1016/j.econmod.2022.105856
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    Cited by:

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    2. Yuan, Sai & Zhou, Ran & Li, Mengna & Lv, Chengchao, 2023. "Investigating the influence of digital technology application on employee compensation," Technological Forecasting and Social Change, Elsevier, vol. 195(C).

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    More about this item

    Keywords

    Rent-sharing; Labour market regimes; Technology bargaining power; Japan;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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