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The Adjustment Speed of Employment at Foreign-Owned Firms


Yukako Murakami and Kyoji Fukao


March, 2007


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Abstract
Is employment practice at foreign-owned firms different from that of Japan, the life-time employment system? Using firm level data of the Japanese manufacturing sector, this paper showed that the adjustment speed of employment at foreign-owned firms was slightly higher than at domestically-owned firms. This finding suggests that firm-specific skills are less important in foreign-owned firms than in Japanese firms.
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Copyright (C) 2003 by Institute of Economic Research.All rights reserved.