ERI Discussion Paper Series No.79
Labor Demand by Age and Gender in Manufacturing Industries
:Evidence from using Microdata of Labor and Production in Japan

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


This paper examines labor demand by age and gender in the manufacturing industry in Japan. It attempts to investigate employment opportunities and their future possibilities, especially for an older labor force. This investigation is an analysis using microdata which include information on production activities and on the demographic structure of employment in each establishment.

There are two aims to this paper: to explain the methodology used in the construction of data sets, and to estimate labor demand. Using new data sets, we estimate production functions for the manufacturing industry.

Because of the preliminary character of this study, we found there are problems which have not been worked out, that is, a zero input value of categorical labor, and collinearity of wages among types of labors.

We present dependency of labor input on size of output and on other characteristics of an establishment like area of the plant or size of the book value of fixed assets. There is a critical point of output at which the phase of employment changes from female labor to male labor. But the transition caused by out put among generations is not so clear as for gender. There is another critical point for area of establishment at which the phase of employment changes from female and young male labor to elderly male labor. But those phase transitions do not depend on the size of the book value of fixed assets.

Structure of the whole text

  1. Abstract別ウィンドウで開きます。(PDF-Format 305 KB)
  2. page1
    1. Introduction
  3. page3
    2. Data Construction
    1. page3
      2.1 On the Data Sources
    2. page9
      2.2 Matching Method in General
    3. page10
      2.3 Specific Matching Method
  4. page11
    3. Formulation of Labor Demand
    1. page13
      3.1 Difficulties of Logarithmic Production Functions
  5. page16
    4. A Formulation of Labor Demand by Demographic Category
    1. page18
      4.1 Labor Demand for the Occupational Category and Demographic Category
    2. page25
      4.2 Formulation of the Labor Input Function
    3. page30
      4.3 Specification of the Model Equations
  6. page36
    5. Estimated Results
    1. page36
      5.1 Data and the Variables
    2. page37
      5.2 Estimated Method and Results
    3. page39
      5.3 Parameter Constellations and Flexibility of Labor
  7. page44
    6. Phase Trasitions of Labor Demand
    1. page44
      6.1 Production Level and Phase of Labor Demand
    2. page44
      6.2 Space Area of Establishment, Capital and Phase of Labor Demand
  8. page45
    7. Conclusion
  9. page49
    1. [1]別ウィンドウで開きます。(PDF-Format 724 KB) [2]別ウィンドウで開きます。(PDF-Format 1.0 MB) [3]別ウィンドウで開きます。(PDF-Format 1.0 MB) [4]別ウィンドウで開きます。(PDF-Format 684 KB)
  • 1-6-1 Nagata-cho, Chiyoda-ku, Tokyo 100-8914, Japan.
    Tel: +81-3-5253-2111