1 / 21

Demand for Labor and Quality of Employment at Forum on the Restated OECD Jobs Strategy in Tokyo October 30-31, 2006

Demand for Labor and Quality of Employment at Forum on the Restated OECD Jobs Strategy in Tokyo October 30-31, 2006. Junichi Goto Kobe University Japan. Outline. Good Macroeconomic Policies – key to labor demand Need to reduce demand-supply gap – effective labor demand

menefer
Télécharger la présentation

Demand for Labor and Quality of Employment at Forum on the Restated OECD Jobs Strategy in Tokyo October 30-31, 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Demand for Labor and Quality of EmploymentatForum on the Restated OECD Jobs Strategy in TokyoOctober 30-31, 2006 Junichi Goto Kobe University Japan

  2. Outline • Good Macroeconomic Policies – key to labor demand • Need to reduce demand-supply gap – effective labor demand • Pros and Cons to ALMP • Quantity and Quality of labor demand • Coping with labor market duality • Lessons from female workers in Japan

  3. 1. Good macroeconomic policies are essential to increase labor demand • Expansion of employment cannot be achieved without economic growth. • Economic performances of OECD countries now are generally better than those in early 1990s. • Unemployment rates now are generally lower than those in early 1990s (except for Japan and Germany) • Both long-term growth and short-term stabilization are important.

  4. 2. Erasing demand-supply gap is important:‘Effective’ labor demand • In some countries (e.g., Japan and Germany), unemployment rates are higher in spite of better economic performance. • Regional disparity • Demand –supply gaps in terms of: • Job categories • Type of employments (e.g., full-time vs. part-time) • Skills and education level (e.g., Douglas-Arisawa’s low)

  5. Disparity between growth and unemployment Blue line: growth rate, pink line: unemployment rate In Japan and Germany, unemployment rate has been increasing without regard to macroeconomic conditions.

  6. 3. Does intervention reduce labor demand? -- Pros and Cons for ALMP • OECD report • ALMP is effective and greatly needed. • Chicago school (e.g., Heckman) • ALMP raises cost of labor. • Higher cost of labor discourages employments. • How to reconcile? • The market determines the long-run equilibrium. • But, ALMP is important to reduce short-run adjustment cost

  7. 4. Quantity and Quality of Labor Demand • To expand the labor demand is utmost important to workers’ welfare. • The increase in employment may be a necessary condition, but not a sufficient condition for workers’ welfare. • More jobs with lower quality may not be desirable. • Both quantity and quality should be taken into account when policies on labor demand are discussed. • An example : part-time workers in Japan

  8. Female employment is expanding …..

  9. But, only non-regular workers are increaseing

  10. And wage gap has been widened

  11. 5. Coping with labor market duality • Decent works for everyone • women • Older workers • Youth, etc. • Accommodations for the weak • Policies with longer and wider perspectives

  12. An example of duality and remedy for it:The case of Japanese female labor • Gender wage gap in the egalitarian society • The M-shape due to child bearing and child care. • Mainstream vs. marginal workers: The second challenge is difficult. • Deep-rooted duality • Social norm on family responsibility • Policies with longer and wider perspective is more important than short-term fix.

  13. Australia 90.8 Sweden 89.0 Norway 86.0 Colombia 84.7 Costa Rica 83.0 Denmark 82.6 France 81.0 Italy 80.0 Paraguay 76.0 Brazil 76.0 Germany 75.8 United States 75.0 Mexico 75.0 Uruguay 74.5 Singapore 71.1 Spain 70.0 United Kingdom 69.7 Hong Kong 69.5 Switzerland 67.6 Argentina 64.5 Japan 63.5 Canada 63.0 Chille 60.5 30 40 50 60 70 80 90 100 Gender wage gap in Japan is one of the worst 

  14. Gender wage gap is bigger for older workers

  15. The M-shape due to child bearing and child care

  16. Mainstream vs. marginal workers (fundamental divide in Japan)

  17. Flat wage profile for non-standard workers

  18. Female managers are (very) few: Gender gaps in promotion, too.

  19. Women bear much more family responsibilities than men: Social norm? longer working hours of men?

  20. Mentality is also a big factor

  21. Conclusions • Good Macroeconomic Policies are key to the expansion of labor demand • To reduce demand-supply gap is also important –‘effective’ labor demand • Balanced labor-market interventions are important. -- ALMPs should be administered so that they do not reduce labor demand. • Both quantity and quality of labor demand are important. • Coping with labor market duality requires a wide range of policy tools (including education) • Lessons from female workers in Japan

More Related