The fraction of contingent workers among all workers in Japan increased from 17% in 1986 to some 34% in 2008. This paper investigates the reason for this secular trend. Both demand and supply increases of contingent workers relative to regular workers are important, as evidenced by the stable...

This paper explains the secular increase of contingent workers in Japan whose share of employment increased from 17 to 34 percent between 1986 and 2008. Changes in labor-forceand industrial compositions explain about one quarter of the increase of contingent workers. The uncertainty of product...