Japanese firms adapt to structural changes by relying on flexible labor input.
The Japanese economy has changed a lot since the late 1990s, with fewer workers, more part-time jobs, and increased globalization. A study looked at how these changes affect Japan's business cycles. They found that companies now adjust work hours instead of hiring or firing people, thanks to more part-time workers. This helps them be flexible with labor. Other parts of the economy, like spending and investments, have stayed pretty consistent despite these changes.