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Advances in Japanese Business and Economics 22 Kazuo Yamaguchi Gender Inequalities in the Japanese Workplace and Employment Theories and Empirical Evidence Advances in Japanese Business and Economics Volume 22 Editor-in-Chief RYUZOSATO C.V.StarrProfessorEmeritusofEconomics,SternSchoolofBusiness, NewYorkUniversity SeniorEditor KAZUOMINO ProfessorEmeritus,KyotoUniversity ManagingEditors HAJIMEHORI ProfessorEmeritus,TohokuUniversity HIROSHIYOSHIKAWA President,RisshoUniversity;ProfessorEmeritus,TheUniversityofTokyo TOSHIHIROIHORI ProfessorEmeritus,TheUniversityofTokyo;Professor,NationalGraduateInstituteforPolicyStudies (GRIPS) EditorialBoardMembers YUZOHONDA ProfessorEmeritus,OsakaUniversity;Professor,KansaiUniversity JOTAISHIKAWA Professor,HitotsubashiUniversity KUNIOITO ProfessorEmeritus,HitotsubashiUniversity KATSUHITOIWAI ProfessorEmeritus,TheUniversityofTokyo;VisitingProfessor,InternationalChristianUniversity TAKASHINEGISHI ProfessorEmeritus,TheUniversityofTokyo;Fellow,TheJapanAcademy KIYOHIKONISHIMURA ProfessorEmeritus,TheUniversityofTokyo;Professor,NationalGraduateInstituteforPolicyStudies (GRIPS) TETSUJIOKAZAKI Professor,TheUniversityofTokyo YOSHIYASUONO Professor,OsakaUniversity JUNJIROSHINTAKU Professor,TheUniversityofTokyo MEGUMISUTO ProfessorEmeritus,WasedaUniversity KOTAROSUZUMURA ProfessorEmeritus,HitotsubashiUniversity;Fellow,TheJapanAcademy EIICHITOMIURA Professor,HitotsubashiUniversity KAZUOYAMAGUCHI RalphLewisProfessorofSociology,UniversityofChicago Advances in Japanese Business and Economics (AJBE) showcases the work of Japanese and non-Japanese scholars researching the Japanese economy and Japanese businesses. Published in English, the series highlights for a global readership the unique perspectives of Japan’s most distinguished and emerging scholars of business and economics. It covers research of either theoretical or empirical nature, in both authored and edited volumes, regardless of the sub-discipline or geographical coverage, including, but not limited to, such topics as macroeconomics, microeconomics, industrial relations, innovation, regional development,entrepreneurship,internationaltrade,globalization,financialmarkets, technology management, and business strategy. At the same time, as a series of volumeswrittenbyJapaneseandnon-JapanesescholarsstudyingJapan,itincludes research on the issues of the Japanese economy, industry, management practice, andpolicy,suchastheeconomicpoliciesandbusinessinnovationsbeforeandafter the Japanese “bubble” burst in the 1990s. AJBE endeavors to overcome a historical deficit in the dissemination of Japaneseeconomictheory,researchmethodology,andanalysis.Thevolumesinthe series contribute not only to a deeper understanding of Japanese business and economics but to revealing underlying universal principles. Overseen by a panel of renowned scholars led by Editor-in-Chief Professor Ryuzo Sato, AJBE employs a single-blind review process in which the Editor-in-Chief, together with the Managing Editors and specialized scholars designated by the Editor-in-Chief or Managing Editors, rigorously reviews each proposalandmanuscripttoensurethateverysubmissionisavaluablecontribution to the global scholarly readership. More information about this series at http://www.springer.com/series/11682 Kazuo Yamaguchi Gender Inequalities in the Japanese Workplace and Employment Theories and Empirical Evidence 123 Kazuo Yamaguchi University of Chicago Chicago, IL, USA ISSN 2197-8859 ISSN 2197-8867 (electronic) Advances in JapaneseBusiness andEconomics ISBN978-981-13-7680-1 ISBN978-981-13-7681-8 (eBook) https://doi.org/10.1007/978-981-13-7681-8 ©SpringerNatureSingaporePteLtd.2019 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission orinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfrom therelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregard tojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSingaporePteLtd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Preface This is a slight expansion and a translation by the author of a book originally published in Japanese in 2017. The original book obtained two book awards in Japan. One of the awards is the Nikkei Book–Culture Award for Books on Economy(NikkeiKeizaiToshoBunkaSho),whichhasbeengiventoafewbooks annuallysince1958andisconsideredthemostprestigiousbookawardinthestudy of economy in Japan. Another award is Showa Women’s University’s Research Book Award in Gender Studies, which is bestowed annually on a single research book that has made the greatest contribution in the past year to the realization of genderequalityinJapan.Itwasthefirstonewrittenbyamaleauthortoreceivethis awardinthetenyearsoftheaward’shistory.Theoriginalbookwasalsotranslated into Korean and published in South Korea in 2018. Thepresentbookaswellastheoriginaloneinvestigatessocialstructuralcauses of gender inequality in Japan while emphasizing micro-behavioral foundations regardingtheproductionandreproductionofthosesocialstructuralcharacteristics. Inthisregard,although empiricalresearchfocusesongender inequalities inJapan, theoretical investigations, including reviews and evaluations of relevant theories developedintheUnitedStates,madeinthebookforthemechanismofproduction andreproductionofgenderinequalitiesinsocietytranscendtheanalysesofJapan’s unique situations and problems. It therefore will be relevant to many researchers who are interested in gender inequalities in the workplace and employment. The authorthushopesthatthetheoreticalandempiricalinvestigationsmadeinthisbook contribute to understanding the causes of gender inequalities over and beyond the understanding of the Japanese case. Chicago, USA Kazuo Yamaguchi v Contents 1 Impediments to the Advancement of Women in the Japanese Employment System: Theoretical Overview and the Purpose of This Book. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Introduction: Basic Facts on Gender Inequality in Employment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Analysis of the Japanese Employment System . . . . . . . . . . . . . . . 7 1.2.1 Main Points of Discussion . . . . . . . . . . . . . . . . . . . . . . . . 7 1.2.2 Strategic Rationality and Limitations of the Japanese Employment System and Practices . . . . . . . . . . . . . . . . . . 14 1.2.3 Institutional Causes of the Strong Persistence of the Traditional Division of Household Labor for Married Couples. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 1.2.4 Statistical Discrimination Against Women and Its Irrationality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 1.2.5 “Dysfunction” of Japanese Employment Practices . . . . . . . 27 1.3 Strategy for Analysis and Organization of This Book . . . . . . . . . . 32 Appendix: A Non-technical Explanation of Rubin’s Causal Model . . . . 37 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 2 Determinants of the Gender Gap in the Proportion of Managers Among White-Collar Regular Employees . . . . . . . . . . . . . . . . . . . . . 47 2.1 Introduction: On the Intermediary Causes of the Gender Wage Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 2.2 Realities of the Disparity in the Proportion of Managerial Positions Between Men and Women . . . . . . . . . . . . . . . . . . . . . . 50 2.3 Analytical Strategy and Main Hypotheses . . . . . . . . . . . . . . . . . . 52 2.4 Method of Statistical Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . 56 vii viii Contents 2.4.1 Decomposition Analysis of the Gender Gap in the Proportion of Managers . . . . . . . . . . . . . . . . . . . . . 56 2.4.2 Analysis of the Gender Gap in the Proportion of Managers Unexplained by Gender Differences in Explanatory Variables . . . . . . . . . . . . . . . . . . . . . . . . . 57 2.5 Analysis Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 2.5.1 Data Employed for Analysis. . . . . . . . . . . . . . . . . . . . . . . 57 2.5.2 Influence of Gender Differences in Educational Attainment, Age, and Years of Service on the Gender Gap in the Proportion of Managers. . . . . . . . . . . . . . . . . . 58 2.5.3 Analysis of Interaction Effects Between Gender andIndividualandFirmCharacteristicsontheProportion of Managers and Supervisors . . . . . . . . . . . . . . . . . . . . . . 66 2.6 Conclusions and Policy Implications . . . . . . . . . . . . . . . . . . . . . . 75 Appendix 1: The BO and DFL Methods for Decomposition Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Appendix 2: A Decomposition Analysis of the Gender Wage Gap . . . . 79 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 3 Causes and Effects of Gender Occupational Segregation: Overlooked Obstacles to Gender Equality . . . . . . . . . . . . . . . . . . . . 83 3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 3.2 Review of Previous Studies and Theories from the West, and Japan’s Current State from a Cross-National Comparative Point of View. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 3.2.1 Review of Previous Studies and Theories on Gender Occupational Segregation. . . . . . . . . . . . . . . . . . . . . . . . . 85 3.2.2 Women’s Participation in Professional Jobs and Japan’s Current Situation from a Cross-National Comparative Point of View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 3.3 Analysis Methods and Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 3.3.1 Analysis Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 3.4 Data and Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 3.5 Analytical Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 3.5.1 DegreeofGenderOccupationalSegregation:Comparison Between Japan and the United States, and Changes Over Time. . . . . . . . . . . . . . . . . . . . . . . . . . 92 3.5.2 AnalyzingtheRelationshipsAmongGender,Occupation, and Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 3.5.3 Decomposition Analysis of Gender Occupational Segregation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 3.6 Conclusion and Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Contents ix 3.6.1 Main Analysis Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 3.6.2 Consistency with Existing Theories and Policy Implications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Appendix 1: Matching Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Appendix 2: Application of the Eight Occupational Classifications Used in the Tables to the Sub-classifications of Japanese and U.S. Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 4 Gender Income Disparity Among White-Collar Regular Employees: Explaining the Causes Responsible for 80% of the Disparity and Its Mechanisms . . . . . . . . . . . . . . . . . . . . . . . . 111 4.1 Introduction: Objectives of This Chapter . . . . . . . . . . . . . . . . . . . 112 4.2 Hypotheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 4.3 Analytical Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 4.3.1 Decomposition of the Gender Income Disparity. . . . . . . . . 118 4.3.2 Analysis of the Heterogeneity of the “Unexplainable Disparity” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 4.4 Data and Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 4.4.1 Data Used in the Analysis . . . . . . . . . . . . . . . . . . . . . . . . 120 4.4.2 Explanatory Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 4.4.3 Descriptive Statistics Results . . . . . . . . . . . . . . . . . . . . . . 121 4.5 Analysis 1: Decomposition Analysis of the Gender Income Disparity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 4.5.1 Interpreting the Degree of Explanation from the DFL Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 4.5.2 Results of Decomposition Analysis. . . . . . . . . . . . . . . . . . 126 4.6 Analysis 2: Analyzing the Heterogeneity of the Unexplainable Disparity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 4.6.1 Gender Income Disparity by Age . . . . . . . . . . . . . . . . . . . 130 4.6.2 Gender Income Disparity by Educational Attainment. . . . . 131 4.6.3 Gender Income Disparity by Occupation. . . . . . . . . . . . . . 133 4.6.4 Gender Income Disparity by Average Weekly Hours Worked. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 4.6.5 Gender Income Disparity by Positional Rank . . . . . . . . . . 135 4.7 Conclusion and Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Appendix: Diagnostic Analyses of the Validity of the Propensity Scores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 x Contents 5 Impacts of Companies’ Promotion of Work–Life Balance and the Restrictive Regular Employment System on Gender Wage Gap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 5.2 Hypotheses and Assumptions for Causal Inference . . . . . . . . . . . . 149 5.3 Data and Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 5.4 Analytical Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 5.5 Analysis Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 5.5.1 Testing the Statistical Independence of the Treatment Variable and Control Variables After the IPT Weighting of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 5.5.2 Effects of Company Attributes and Individual Attributes on Company Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 5.5.3 Effects of the Presence of the GEO Policy . . . . . . . . . . . . 159 5.5.4 Combined Effects of the Presence of the GEO Policy and the WLB Promotion Policy . . . . . . . . . . . . . . . . . . . . 161 5.5.5 Combined Effects of the Presence of the GEO Policy and the Presence of a Work-Location-Restricted Regular Employment System . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 5.6 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 6 Empowerment of Women in the Workplace and Labor Productivity: Which Company Policies Are Effective and Why . . . . 167 6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 6.2 OECD Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 6.3 Analysis of Japanese Corporations. . . . . . . . . . . . . . . . . . . . . . . . 174 6.3.1 Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 6.3.2 Tobit Regression Analysis on Determinants of Companies’ Gross Profit on Sales. . . . . . . . . . . . . . . . . 175 6.4 Conclusion and Discussion on Causal Effects. . . . . . . . . . . . . . . . 188 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 7 Statistical and Indirect Discrimination: Revisiting the Incentive Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 7.1 Introduction: Self-Fulfilling Prophecy and Statistical Discrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 7.2 Reviewing the Theory of Coate and Loury and Examining Its Problems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 7.2.1 Important Points in Understanding the Theory. . . . . . . . . . 199 7.2.2 A More Formal Review of the CL Theory . . . . . . . . . . . . 201 7.3 Measures Not Considered by the CL Theory . . . . . . . . . . . . . . . . 207

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