This book examines the current state of the Japanese employment system from an economic perspective. It also looks at how the changing economy and demography, including the prolonged recession and the rapid ageing of the population, has affected the labour market and its institutions. The main focus of the book is on the increased use of non-standard forms of labour, especially in the labour market for youth. This is seen to be partly a by-product of the long recession, but also a longer-run change in the human resource management strategy of firms. The book also examines the implications thes ... More

This book examines the current state of the Japanese employment system from an economic perspective. It also looks at how the changing economy and demography, including the prolonged recession and the rapid ageing of the population, has affected the labour market and its institutions. The main focus of the book is on the increased use of non-standard forms of labour, especially in the labour market for youth. This is seen to be partly a by-product of the long recession, but also a longer-run change in the human resource management strategy of firms. The book also examines the implications these developments will have on the income distribution in the future as many young men in this male-breadwinner society no longer have access to stable long-term jobs. Other topics examined in the book include the impact of increased educational attainment and anti-discrimination legislation on the labour market for women, the declining importance of labour unions, the low rate of immigration into Japan, and the success Japan has had in keeping older workers employed. The final conclusion of the book is that many of the aspects of the employment system for regular, full-time workers remain in place, although the system has become more flexible.