abstract: 'Both inward and outward foreign direct investment (FDI) have

  implications for the wage rates of home-country workers. Such

  implications have been particularly noteworthy in Japan where the

  traditional internal labor-market practices, which value long-term

  sustainability of employment and wages, collide with the pressure for

  change in the globalizing Japanese economy on many fronts. In this paper

  we estimate the impacts of FDI on workers'' wages in Japanese

  manufacturing industries. We find that Japanese employees benefit, in

  the form of wage gains, from their employers'' association with both

  inward and outward FDI operations. These wage effects differ

  systematically depending on gender and worker ranks within their

  employer firms and are likely to weaken the mechanisms underlying the

  sustainability of Japanese firms'' traditional internal labor markets.

  The presence of FDI effects on worker wages also implies an increasing

  disparity between the incomes of workers who work for successfully

  globalizing firms and workers who do not, jeopardizing Japan''s

  traditional policy objective to sustain harmonious economic growth

  across all economic sectors. This would also deepen the structural

  divide including the wage gap of the Japanese economy that exists

  between large firms and small-and medium-size enterprises (SMEs) since

  firms which get involved in FDIs are mostly large firms.'
affiliation: 'Nakamura, M (Corresponding Author), Univ British Columbia, Sauder Sch
  Business \& Inst Asian Res, Vancouver, BC V6T 1Z2, Canada.

  Nakamura, Masao, Univ British Columbia, Sauder Sch Business \& Inst Asian Res, Konwakai
  Japan Res Chair, Vancouver, BC V6T 1Z2, Canada.'
author: Nakamura, Masao
author-email: masao.nakamura@sauder.ubc.ca
author_list:
- family: Nakamura
  given: Masao
da: '2023-09-28'
doi: 10.1177/0021909613493601
eissn: 1745-2538
files: []
issn: 0021-9096
journal: JOURNAL OF ASIAN AND AFRICAN STUDIES
keywords: 'Internal labor market; foreign direct investment; Japan; sustainability

  of employment and wages'
keywords-plus: UNITED-STATES; HOME-COUNTRY; MANAGEMENT; EMPLOYMENT; US
language: English
month: AUG
number: 4, SI
number-of-cited-references: '58'
pages: 396-412
papis_id: b3eab813ae505be6f04f54b7bcdee33d
ref: Nakamura2013globalizationsustain
times-cited: '3'
title: 'Globalization and Sustainability of Japan''s Internal Labor Markets: Foreign
  Direct Investment (FDI) and Wages at Japanese Manufacturing Firms'
type: Article
unique-id: WOS:000209380000002
usage-count-last-180-days: '2'
usage-count-since-2013: '26'
volume: '48'
web-of-science-categories: Area Studies
year: '2013'