Using parent-foreign affiliate matched data on Japan from 1995 to 2009, this paper examines the effects of foreign direct investment (FDI) on domestic employment, especially in manufacturing. One of the contributions of this paper is that we utilize the matched data for each country in which...

When the Japanese economy went into recession in the 1990s, the number of employees dismissed by companies increased dramatically while the ratio of disputes over dismissals, in the form of labor action and lawsuits, has been in continuous decline since that time. It is true that overall the...

We use the result from a survey of Japanese firms in manufacturing and services to investigate the choice of wage and employment adjustments when they needed to reduce substantially the total labor cost. Our regression analysis indicates that the large size reduction favors the layoffs of core...