Employment and wage adjustments at firms under distress in Japan: An analysis based upon a survey

We use the result from a survey of Japanese firms in manufacturing and service to investigate the choice of wage and employment adjustments when they needed to reduce substantially the total labor cost. Our regression analysis indicates that the large size reduction favors the layoffs of the core employees, whereas the base wage cuts are more likely if the firms do not feel immediate pressures from the external labor market or the strong competition in the product market. We also find some evidence that the concerns over adverse selection or demoralizing effects of wage cuts are real. Firms do try to avoid using base wage cuts if they consider these factors more important.     

Occupational and Internal Labor Markets in Japan

The distinction between internal and occupational labor markets requires the development of informative indicators that go beyond standard measures such as firm size, which are too vague. This article develops an alternative measure, based on the comparison between firm-specific and occupation-specific tenure, and applies it to Japanese occupational data. We believe that the proposed measure is useful not only in classifying different occupations according to the degree of labor market internalization but also in documenting changes over time in job definition, "reengineering" of the corporation, and the like.     

Estimating the mark-up over marginal cost: a panel analysis of Japanese firms 1971–1994

In this paper, we propose a new method to estimate mark-ups over marginal cost at the firm level. This method is based on the identity between the short-run elasticity of output to inputs, the mark-up rate, and the factor shares. We then apply this method to a panel of Japanese firms in 21 industries over 24 years. We have three main results. First, there is strong evidence of imperfect competition in this panel, in which internationally competitive industries show low mark-ups. Second, the mark-up rate differs considerably among firms and its distribution is skewed. Third, the mark-up rate over marginal cost shows strong procyclicality, and its sensitivity is uniform within the industry.     

Modeling the Effects of Input Market Reforms on Fertiliser Demand and Maize Production: A Case Study from Kenya

Kenya is one of the few countries in Sub‐Saharan Africa to experience an impressive rise in fertiliser use following a series of input market reforms in the early 1990s. Two major consequences of these reforms were declining fertiliser marketing margins and distances between farmers and fertiliser dealers. We quantify the effects of these changes on commercial fertiliser use and maize production in Kenya by estimating fertiliser demand and maize supply response functions using nationwide household survey data. Our results indicate that between 1997 and 2010, the estimated 27% reduction in real fertiliser prices that can be attributed to falling marketing margins associated with market reforms led to a 36% increase in nitrogen use on maize fields and a 9% increase in maize production resulting from both yield and acreage effects. On the other hand, decreasing distances to fertiliser retailers from the perspective of a given household did not appear to raise fertiliser use or maize supply, although a comparison across households using average distances over the panel indicate that those closer to retailers do apply more fertiliser on their maize fields.     

Corporate hierarchy, promotion, and firm growth: Japanese internal labor market in transition

This paper investigates the incentive systems and the hierarchical design of the Japanese firms as integral parts of employment structure. Using the survey cross-section data on job ranks and wages, we analyze the promotion policy and compensations system as the key incentive mechanism in these firms with highly developed internal labor markets. We find that the incentive as well as hierarchical structures of the large Japanese firms are highly sensitive to the longrun growth rates of these firms. This finding is supported by a prediction of a model of internal promotions developed in the paper. We also find that the span of control, incentive effects of promotion, and wage-age profile at each job rank are all increasing in the longrun growth rates of these firms. These findings are jointly consistent with and in support of the hypothesis that the expected gains from the promotion is the key incentive in inducing efforts of the employees.     

Learning program for enhancing visual literacy for non-design students using a CMS to share outcomes

This study proposes a basic learning program for enhancing visual literacy using an original Web content management system (Web CMS) to share students’ outcomes in class as a blog post. It seeks to reinforce students’ understanding and awareness of the design of visual content. The learning program described in this research focuses on to address how to create meanings of visual content that is important to express information visually, and includes three exercises based on perception, visual variables, and signification. The Web CMS to publish student works and share in class helps enhance students’ reflection. We also developed a rubric as an assessment device for students’ outcomes. The content of the learning program and its implementation are described with the support of observational data.     

Can improved agricultural technologies spur a green revolution in Africa? A multicountry analysis of seed and fertilizer delivery systems

Sub‐Saharan Africa faces low agricultural productivity amid a confluence of trends that include rapid population growth, climate change, and the rise of the middle class. To raise productivity, governments—in partnership with donors and development organizations—have launched numerous initiatives to encourage the development of sustainable and competitive agricultural input markets. Despite these efforts, markets remain underdeveloped in most countries and access to affordable seeds and fertilizers remains a major challenge for smallholder farmers. This paper explores evidence from recent multicountry analyses of input delivery systems to assess the possibility of a Green Revolution in Africa. It describes use and adoption levels, challenges, policy and regulatory issues, and investments needed to expand smallholder access to these productivity‐enhancing agricultural technologies.     

Determinants of Individual-Firm Markup in Japan: Market Concentration, Market Share, and FTC Regulations

This paper estimates individual firm level markup for more than 400 major manufacturing firms in Japan. Our estimates suggest the presence of significant market power for most of these firms, due not only to market concentration but also to the firms' own market shares, as well as advertizing and sales promotion efforts. The paper then goes on to assess systematically the impact on estimated markups of regulatory measures taken by the Fair Trade Commission (FTC) of the Japanese Government. We find that non-punitive FTC activities are directed toward the right targets and are reasonably effective, whereas injunctions, the strongest measure endowed to the FTC, has essentially no effect on the markups of firms in our sample. J. Japan. Int. Econ., Dec. 1999, 13(4), pp. 424–450. Institute of Economic Research, Kyoto University, Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501, Japan; Institute for Social and Economic Research, Osaka University; and Faculty of Economics, University of Tokyo. Copyright 1999 Academic Press.Journal of Economic Literature Classification Numbers: L13, L41.