Revamping Japan's Labor Market Could Boost Economic Growth Significantly
The article argues that Japan's dual labor market system can lower productivity by affecting the effort of non-regular workers and firms' training incentives. By looking at data from different countries, the article suggests that reducing the gap in job security between regular and non-regular workers in Japan could help. One solution proposed is to introduce a Single Open Ended Contract for all new hires. This change, along with a mix of flexibility and security in the labor market, could lead to better wage growth and overall economic growth in Japan.