Estimation of the imperfect substitutability between foreign workers and native residents in Japan

Jinno, Masatoshi (2024): Estimation of the imperfect substitutability between foreign workers and native residents in Japan.

Abstract

This paper examines the imperfect substitutability between foreign workers and native residents in Japan. It utilizes a production function to analyze how foreign workers impact native wage rates, employing data from Japan's Basic Wage Structure Survey. The study finds significant, yet theoretically unexpected results regarding the wage rate and annual income ratios between native and foreign workers. Despite the significance of its findings, the paper acknowledges limitations and the need for further research, especially concerning classification by residency status.

• Item Type: MPRA Paper
• Language: English
• Keywords: Foreign Workers, Imperfect Substitutability, Productivity
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers

References

Dustmann, C., U. Schönberg, and J. Stuhler (2016) “The Impact of Immigration: Why Do Studies Reach Such Different Results?” Journal of Economic Perspectives, Vol. 34(4), pp. 31-56.

JILPT (2023) Survey on the Acceptance and Utilization of Foreign Workers with Specified Skill No. 1 [Translated from Japanese.]. The Japan Institute for Labour Policy and Training. (written in Japanese).

Llull, J. (2020). “The Impact of Immigration on Productivity.” in E. Vella, J. Caballé, & J. Llull (Eds.), Understanding Migration with Macroeconomics, Palgrave Macmillan.