Precarious Work in Japan

Abstract

This article examines the causes and consequences of the dramatic growth of precarious employment in Japan since the 1990s. In response to heightened competition associated with globalization, Japanese firms adopted cost-cutting policies to remain competitive, especially in terms of reducing wage outlays. As a result, companies hired fewer regular workers and increased the proportion of temporary workers. Based upon the breadwinner model, Japan mandated social insurance benefits only for regular workers, creating a significant incentive to hire more temporary workers. The lack of economic security among a significant portion of the labor force has repercussions for many young people, who are now marginalized as nonregular workers and are delaying or avoiding marriage and family formation. This trend is exacerbating the low fertility rate and also means that government social policies relying on a supportive family are at odds with emerging social realities. With low wages and limited social support, the working poor are becoming entrenched in poverty. Furthermore, a gender bias in social spending and taxation is pronounced in Japan, and that adversely affects women workers, especially single mothers.