Foreign Help Wanted: Easing Japan’s Labor Shortages

Author/Editor:

Giovanni Ganelli ; Naoko Miake

Publication Date:

July 30, 2015

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Data and anecdotal evidence suggest that Japan is suffering from labor shortages, which are large in an international perspective, have a negative impact on potential growth, and reduce the effectiveness of monetary and fiscal stimulus. This paper focuses on policy options to ease Japan’s labor shortages. In particular, we focus on possible measures to increase reliance on foreign labor. Other policy recommendations to deal with shortages include policies aimed at increasing female labor participation, encouraging wage growth, increasing investment, as well as training and other active labor market policies.

Series:

Working Paper No. 2015/181

Subject:

Foreign labor Labor Labor force Labor markets Labor shortages Migration

English

Publication Date:

July 30, 2015

ISBN/ISSN:

9781513530642/1018-5941

Stock No:

WPIEA2015181

Pages:

21

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