Change and Stability in the Social Stratification Change and Stability in the Social Stratification System in Contemporary Japan: System in Contemporary Japan:

Coexistence of Stability and FluidizationCoexistence of Stability and Fluidization

Yoshimichi SatoYoshimichi SatoYusuke HayashiYusuke Hayashi

Center for the Study of Social Stratification and InequalityCenter for the Study of Social Stratification and InequalityTohoku UniversityTohoku University

ERIS SeminarERIS SeminarFebruary 9, 2010February 9, 2010

Research QuestionResearch Question

• Seemingly contradictory discourses on social Seemingly contradictory discourses on social stratification and inequality in contemporary stratification and inequality in contemporary JapanJapan– Stabilization / Immobilization / BifurcationStabilization / Immobilization / Bifurcation

• Toshiki Sato: Increase in intergenerational immobility of Toshiki Sato: Increase in intergenerational immobility of professionals/managersprofessionals/managers

• Toshiaki Tachibanaki: Increasing inequality of incomeToshiaki Tachibanaki: Increasing inequality of income

– FluidizationFluidization• Yuji Genda: Increase in young non-regular workersYuji Genda: Increase in young non-regular workers• Yuki Honda: Weakening implicit contracts between schools Yuki Honda: Weakening implicit contracts between schools

and firmsand firms

Research Question (cont’d)Research Question (cont’d)

• How can we consistently understand the How can we consistently understand the two discourses?two discourses?

• Social stratification matters.Social stratification matters.– Some strata (classes) are still under the Some strata (classes) are still under the

umbrella of protective institutions in the labor umbrella of protective institutions in the labor market such as the long-term employment market such as the long-term employment practice.practice.

– Other strata (classes) are involved in the Other strata (classes) are involved in the turmoil of the fluid labor market.turmoil of the fluid labor market.

Image of Our AnswerImage of Our Answer

Theoretical BackgroundsTheoretical Backgrounds

Global ForcesGlobal Forces

Local InstitutionsLocal Institutions• GlobalizationGlobalization• Neo-liberalismNeo-liberalism

Social StratificationSocial Stratification and Mobilityand Mobility

• Dual Labor MarketDual Labor Market• Long-termLong-term Employment PracticeEmployment Practice• Implicit ContractsImplicit Contracts between Schoolsbetween Schools and Firmsand Firms

Data and MethodData and Method• DataData

– 2005 Social Stratification and Social Mobility 2005 Social Stratification and Social Mobility Survey (2005 SSM Survey)Survey (2005 SSM Survey)

• MethodMethod– Selecting empirical findings inSelecting empirical findings in

the fifteen volumes ofthe fifteen volumes ofthe SSM reportthe SSM report

– Focusing on three areas: Education, the youth Focusing on three areas: Education, the youth labor market, and career development.labor market, and career development.

EducationEducation

• Implicit contracts between schools and Implicit contracts between schools and firmsfirms– Those who got a job through the contracts are Those who got a job through the contracts are

more likely to get it within a month after more likely to get it within a month after graduation and to get regular employment graduation and to get regular employment than those who used job advertisement than those who used job advertisement (Brinton, 2008).(Brinton, 2008).

– Widening gap between graduates using the Widening gap between graduates using the contracts and those not using themcontracts and those not using them

Youth Labor MarketYouth Labor Market• Stability of the long-term employment practice Stability of the long-term employment practice

(Nakazawa, 2008)(Nakazawa, 2008)

• Young workers under the LTE vs. Young workers in Young workers under the LTE vs. Young workers in unstable employmentunstable employment

Coefficient of firm size of Coefficient of firm size of event history analysis with event history analysis with duration of first job as duration of first job as dependent variabledependent variable

-0.5

0

0.5

1

1.5

2

Small Middle Large Public Sector

Male

Female

Youth Labor Market (cont’d) Youth Labor Market (cont’d)

• Employment StatusEmployment Status– Non-regular workers tend to leave their first job Non-regular workers tend to leave their first job

earlier than regular workers (Hirata, 2008).earlier than regular workers (Hirata, 2008).• Educational StratificationEducational Stratification

– Speculation: Entry to the long-term employmentSpeculation: Entry to the long-term employment– Entry to regular employment (Brinton, 2008; Entry to regular employment (Brinton, 2008;

Hirata, 2008)Hirata, 2008)

Youth Labor Market (cont’d)Youth Labor Market (cont’d)• Early career of young female workers (Iwai, 2008)Early career of young female workers (Iwai, 2008)

• Bottom Line: Increase in non-regular employment and Bottom Line: Increase in non-regular employment and fluidization of employment in the youth labor market are fluidization of employment in the youth labor market are observed in a particular area of the market: less-educated observed in a particular area of the market: less-educated workers in the periphery of the market.workers in the periphery of the market.

01020304050607080

1950-59 1960-69 1970-74 1975-79

College-Regular

College-Non-regularJunior College-RegularJunior College-Non-regularHS-Regular

HS-Non-regular

Career DevelopmentCareer Development• Heterogeneous change in the long-term Heterogeneous change in the long-term

employment practice (Inada, 2008)employment practice (Inada, 2008)– Percentage of workers under the LTE has Percentage of workers under the LTE has

been decreasing.been decreasing.– HOWEVER, the decreasing rate in large firms HOWEVER, the decreasing rate in large firms

is lower than that in small and mid-sized firms.is lower than that in small and mid-sized firms.

0

10

20

30

40

50

60

70

80

90

1936-45 1946-1955 1956-65 1966-75 1976-1985

% of workers under

LTEBirth cohorts

White-collar workers at large firms

White-collar workers at small/mid-sized firms

Career Development (cont’d)Career Development (cont’d)• Differential influence of education on decrease in income Differential influence of education on decrease in income

associated with changing jobs (Hayashi, 2008)associated with changing jobs (Hayashi, 2008)

• Credentials (Agata, 2008): Less-educated workers tend to utilize Credentials (Agata, 2008): Less-educated workers tend to utilize occupational credentials with which to survive in the labor market.occupational credentials with which to survive in the labor market.

• Bottom Line: Social stratification matters.Bottom Line: Social stratification matters.

Percentage of Percentage of Job Changers Job Changers with Decrease with Decrease

in Incomein Income

Timing of Job ChangeTiming of Job Change0

5

10

15

20

25

30

1956-72 1973-86 1987-90 1991-05

HS JHSJC and over

ConclusionsConclusions• Coexistence of stability and fluidizationCoexistence of stability and fluidization

• Why so?Why so?– 1)Skill-biased technological change and 2) stagnated 1)Skill-biased technological change and 2) stagnated

income of low-skilled workers (Nagamatsu, 2008)income of low-skilled workers (Nagamatsu, 2008)– Creation of rent in the upper area of the stratification Creation of rent in the upper area of the stratification

system and its deterioration in the lower area (Grusky, system and its deterioration in the lower area (Grusky, Weeden, and Di Carlo, 2008)Weeden, and Di Carlo, 2008)