Wage curve in dual labor markets: cross-sectional evidence from Japan

• Autores: Kazuyuki Inagaki
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 4, Nº. 2, 2015, págs. 51-56
• Idioma: inglés
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• Resumen

  • Using a threshold regression model, we find that the wage-unemployment relationship in Japan depends on the degree of labor market duality. The unemployment elasticity of wages is negative for the group with a lower degree of duality and, therefore, the Japanese wage curve holds for that group. However, the wage-unemployment relationship is reversed if the share of non-regular workers exceeds approximately 30%. Therefore, the Japanese wage curve does not hold for the group with a higher degree of duality, and alternative theories such as compensating differentials may be useful to explain this group