The Determinants and Effects of Early Job Separation in Japan

Using the panel data from the 2011 Japanese Longitudinal Survey on Employment and Fertility (LOSEF), this study aims to investigate (i) the determinants of early job separation of male workers who started their working career as regular employees, and (ii) the effects of early job separation on later labor market outcomes. In conducting this investigation, we take into account the possibility that (i) and (ii) may vary by cohort, reflecting the considerable changes in Japan’s industrial structure and labor market since the early 1990s. The results of the investigation can be summarized as follows. First, the percentage of individuals leaving the first job within the first five years is significantly higher for individuals in younger cohorts. Second, in line with previous studies, we find that the duration of the first job is significantly related with macroeconomic conditions at the time of searching for the first job. We also find that for the younger cohort the duration of the first job is related with individuals’non-cognitive skills (e.g., communication skills). Finally, individuals leaving their first job within the first few years are likely to be enrolled in the employees’pension insurance system for fewer years and more likely to change their job in the future. Furthermore, individuals who leave the first job very early - within one or two years - tend to change their job more frequently than others.

Institute of Economic Research, Hitotsubashi University

2013-03

English(eng)

technical report

VoR

35

CIS Discussion paper series

https://hdl.handle.net/10086/25515