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Income and Wealth$
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Tsuneo Ishikawa

Print publication date: 2002

Print ISBN-13: 9780198288626

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/019828862X.001.0001

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The Dual Labour Market Hypothesis and the Japanese Labour Market

The Dual Labour Market Hypothesis and the Japanese Labour Market

Chapter:
(p.241) 6 The Dual Labour Market Hypothesis and the Japanese Labour Market
Source:
Income and Wealth
Author(s):

Tsuneo Ishikawa

Publisher:
Oxford University Press
DOI:10.1093/019828862X.003.0006

What kind of contribution will the theories developed so far make to an understanding of the working of the labour market? From among the various important topics concerning the Japanese labour market, this chapter focuses on its dualistic structure, which has for years caught the attention of many researchers. The chapter consists of two sections. Section 6.1 reviews the meaning of the dualistic wage structure in Japan, and discusses the theoretical rationale for its emergence. Section 6.2 is devoted to an empirical test of whether the entry fee/bond mechanism believed to have the role of removing the entry barrier to the internal labour market actually operated in Japan, by examining the cohort wage profiles of male new school graduates and their movement over time––the supposition being that, if such a mechanism were ever to operate, it would do so by way of generating a seniority wage element that would necessarily be anti‐cyclical in nature. The focus is placed on the new school graduates market because it is the principal port of entry into the internal labour market in Japan, and has previously been regarded as a very competitive one.

Keywords:   dual labour market, entry barrier, graduates, internal labour market, Japan, seniority

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