ERI Discussion Paper Series No.77
Labor Demand by Age and Gender in Commercial Industries:
Evidence from using Microdata of Labor and Production in Japan

May 1997
Hitoshi Hayami
(Keio Economic Observatory, Keio University)
Masahito Nakajima
(Economic Research Institute, Economic Planning Agency)


This paper examines that the recent labor demand by age and by gender in commercial industries in Japan. It aims to investigate the employment possibilities and opportunities of elderly labor forces. In the process of estimating labor input functions, the authors constructed an establishment base micro data set which includes both labor conditions and production activities, no such data sets have obtained as of yet.

The results are summarized in figures which describe the dependency of employment by demographic type on output level. They reveal a strong nonlinear relationship between output and employment ; there is an optimal output level of establishment to maintain the specific structure of labor. The nonlinear relationship is not only main output but also the subsidiary output and sales place's area. The estimated parameters show that there is no specific character of elderly labor, therefore production activity does not depend on demographic characters in a consistent manner. Joint product leads to a higher male proportion, and the larger the sale place's area the more female labor and over 50s male labor are employed in retail industry. In wholesale industry, the more the subsidiary output is produced, the more male labor is demanded.

Structure of the whole text

  1. Abstract別ウィンドウで開きます。(PDF-Format 280 KB)
  2. page1
    1. Introduction
  3. page2
    2. Data Construction
  4. page5
    3. Formulation of Labor Demand
    1. page6
      3.1 Static Theory of Labor Demand
  5. page14
    4. A New Formulation of Labor Demand by Age and by Gender
    1. page15
      4.1 General Description of the Model
    2. page20
      4.2 Specification of the Model Equations
  6. page26
    5. Estimated Results
    1. page26
      5.1 Data and the Variables
    2. page29
      5.2 Estimation Method and Results
    3. page33
      5.3 Parameter Constellations and Flexbility of Labor
  7. page37
    6. Phase Transitions of Labor Demand
    1. page37
      6.1 Production Level and Phase of Labor Demand
    2. page38
      6.2 Area of Sales Place in Retail Trade, Subsidiary Output and Phase of Labor Demand
  8. page39
    7. Concluding Remarks
  9. page42
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