Change and Stability in the Social Stratification System in Contemporary Japan: Coexistence of Stability and Fluidization Yoshimichi Sato Yusuke Hayashi Center for the Study of Social Stratification and Inequality Tohoku University ERIS Seminar February 9, 2010

Research Question Seemingly contradictory discourses on social stratification and inequality in contemporary JapanSeemingly contradictory discourses on social stratification and inequality in contemporary Japan –Stabilization / Immobilization / Bifurcation Toshiki Sato: Increase in intergenerational immobility of professionals/managersToshiki Sato: Increase in intergenerational immobility of professionals/managers Toshiaki Tachibanaki: Increasing inequality of incomeToshiaki Tachibanaki: Increasing inequality of income –Fluidization Yuji Genda: Increase in young non-regular workersYuji Genda: Increase in young non-regular workers Yuki Honda: Weakening implicit contracts between schools and firmsYuki Honda: Weakening implicit contracts between schools and firms

Research Question (cont’d) How can we consistently understand the two discourses?How can we consistently understand the two discourses? Social stratification matters.Social stratification matters. –Some strata (classes) are still under the umbrella of protective institutions in the labor market such as the long-term employment practice. –Other strata (classes) are involved in the turmoil of the fluid labor market.

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Theoretical Backgrounds Global Forces Local Institutions Globalization Globalization Neo-liberalism Neo-liberalism Social Stratification and Mobility and Mobility Social Stratification and Mobility and Mobility Dual Labor Market Dual Labor Market Long-term Long-term Employment Practice Employment Practice Implicit Contracts Implicit Contracts between Schools between Schools and Firms and Firms

Data and Method DataData –2005 Social Stratification and Social Mobility Survey (2005 SSM Survey) MethodMethod –Selecting empirical findings in the fifteen volumes of the SSM report –Focusing on three areas: Education, the youth labor market, and career development.

Education Implicit contracts between schools and firmsImplicit contracts between schools and firms –Those who got a job through the contracts are more likely to get it within a month after graduation and to get regular employment than those who used job advertisement (Brinton, 2008). –Widening gap between graduates using the contracts and those not using them

Youth Labor Market Stability of the long-term employment practice (Nakazawa, 2008)Stability of the long-term employment practice (Nakazawa, 2008) Young workers under the LTE vs. Young workers in unstable employmentYoung workers under the LTE vs. Young workers in unstable employment Coefficient of firm size of event history analysis with duration of first job as dependent variable

Youth Labor Market (cont’d) Employment StatusEmployment Status –Non-regular workers tend to leave their first job earlier than regular workers (Hirata, 2008). Educational StratificationEducational Stratification –Speculation: Entry to the long-term employment –Entry to regular employment (Brinton, 2008; Hirata, 2008)

Youth Labor Market (cont’d) Early career of young female workers (Iwai, 2008)Early career of young female workers (Iwai, 2008) Bottom Line: Increase in non-regular employment and fluidization of employment in the youth labor market are observed in a particular area of the market: less-educated workers in the periphery of the market.Bottom Line: Increase in non-regular employment and fluidization of employment in the youth labor market are observed in a particular area of the market: less-educated workers in the periphery of the market.

Career Development Heterogeneous change in the long-term employment practice (Inada, 2008)Heterogeneous change in the long-term employment practice (Inada, 2008) –Percentage of workers under the LTE has been decreasing. –HOWEVER, the decreasing rate in large firms is lower than that in small and mid-sized firms. % of workers under LTE Birth cohorts White-collar workers at large firms White-collar workers at small/mid-sized firms

Career Development (cont’d) Differential influence of education on decrease in income associated with changing jobs (Hayashi, 2008)Differential influence of education on decrease in income associated with changing jobs (Hayashi, 2008) Credentials (Agata, 2008): Less-educated workers tend to utilize occupational credentials with which to survive in the labor market.Credentials (Agata, 2008): Less-educated workers tend to utilize occupational credentials with which to survive in the labor market. Bottom Line: Social stratification matters.Bottom Line: Social stratification matters. Percentage of Job Changers with Decrease in Income Timing of Job Change

Conclusions Coexistence of stability and fluidizationCoexistence of stability and fluidization Why so?Why so? –1)Skill-biased technological change and 2) stagnated income of low-skilled workers (Nagamatsu, 2008) –Creation of rent in the upper area of the stratification system and its deterioration in the lower area (Grusky, Weeden, and Di Carlo, 2008)