Job polarization and jobless recoveries in Japan: Evidence from 1984 to 2010

Abstract

This study presents evidence for the existence of job polarization in Japan, identifies its effects across four age cohorts, and shows its relationship to Japan's business cycles during 1984-2010. The findings indicate that middle-skilled occupations decreased most sharply among the youngest workers. Our examination of the relationship between occupational categories and the business cycles demonstrates that job polarization is cyclical rather than gradual. Particularly, only employment in middle-skilled occupations did not recover after recessions. This finding underlies Japan's jobless recovery.