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Changing Demographic of Labor Force and Productivity: A Case of Japan

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For the period of 1978-2003, this paper examines the relationship between changing productivity and demographic characteristics of Japan's labor force. The results of this study reveal four important and interesting characteristics of the Japanese labor force. First, there is a negative relationship between productivity growth and turnover rates. Second, the participation rate of younger workers in the labor force has declined; this has resulted in a decline in the percentage of younger workers (15-34 years old). Third, the gender distribution of the labor force has not changed in any significant way. Fourth, the unemployment rate has increased by more than four times. These labor force changes have contributed to fluctuations in productivity growth.

Affiliations: 1: Ohio University, Athens, Ohio 45701;, Email:; 2: Ohio University, Athens, Ohio 45701;, Email:; 3: Ohio University, Athens, Ohio 45701;, Email:; 4: Marshall University, Huntington, West Virginia, 25701;, Email:; 5: Chubu University, Kasugai, Aichi, 487-8501, Japan;, Email:


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