labour-supply-and-the-labor-markets
Comparative Economic Development
Labour Supply and the Labour Markets
Introduction
Focus on labor issues in early Meiji Japan
Key aspects include exploitation, working conditions, and labor organization
Historical Context
Labour Problems in Early Meiji Era
Exploitation through long working hours and primitive conditions
Female workers in cotton and silk faced low wages, poor conditions, high turnover
Labor shortages led to fierce competition among employers and sweatshops
Material conditions for workers improved significantly from the Meiji period to the 1930s, with average worker betterment reported at three times the conditions of the 1860s.
Labour Supply Factors
Changes influenced by participation rates, immigration, and population increase.
Pre-WW2: self-employed, family workers, and some employed were key groups.
Reduction in growth of gainful workers until 1925 due to compulsory education contributing to a falling participation rate.
Immigration countered by emigration to Asia and Brazil.
Demographic Trends
Population Growth Rates
Increased from <1% in early Meiji to a peak of 1.4% in the interwar period.
Natural increase accounted for an average growth rate of about 1.2%.
Birth Rate Changes
Rising trends until 1920; crude birth rates around 31/1000 in 1870, peaking at 38/1000 in 1920.
Improved registration, decline in abortions, and economic development factors.
Birth rates decreased dramatically from 38 to 17 between 1920 and 1960.
General fertility rates also declined from 218 to 108.
Economic Dynamics
Post-1868 Demographic Developments
Continued patterns from Tokugawa period characterized by low birth rates post-1920s.
Economic Growth Context
Population growth directly correlated with economic development; from 34 million in 1870 to 104 million in 1970.
Moderate growth rates post-Second World War compared to developing countries.
Labour Supply Theories
Industrial Structure
The transition from labor surplus to labor scarcity noted, starting with Lewis’s unlimited supplies model.
Fei-Ranis model identified agricultural-industrial dualism with abundant unskilled labor until 1920; post-1920 marked limitations in surplus labor.
Industrial Challenges
Key issues in workforce management: hiring, training, organization, and retention.
Until recent years, industries tapped into a considerable low-wage rural labor pool.
Wage Structures
Intra-Industrial Dualism
Emergence of differentials among small-scale manufacturing with labor-intensive processes.
Wage differentials existed due to age, education, location, etc.
Trends in wage differentials fluctuated during 1920s-1950s.
Employment Systems
Employment Features
Seniority wage systems, lifetime employment commitment, and enterprise unions.
Indications of a balanced workforce through stable employment and wage increases were common.
Labour Market Evolution
Dual structures remained where big company workers benefitted from trade unions while small-scale workers lacked collective bargaining power.
Rapid industrialization led to labor reallocation improving conditions in the manufacturing sector.
Social Norms and Work Culture
Tentative collaboration between management and workforce; conflict-avoidance through group decision-making practices.
Labour's contribution to growth acknowledged beyond mere numbers, emphasizing quality improvements tied to education and skills.
Critiques of the System
The Japanese labor system faces challenges; criticisms include the ineffectiveness of trade unions and doubts regarding long-term viability.
Changes in economic conditions could impact the balance of seniority wages, emphasizing human resources as key for future productivity.
Future Considerations
Conclusion
Human resources were vital in Japan's industrialization, contributing massively despite systemic criticisms.
The continuing evolution of employment trends and labor market structures remains a significant point of focus.