The causal effects of exporting on domestic workers: A firm-level analysis using Japanese data

Japan has experienced rapid growth of non-regular workers under globalization in the 2000s. This study seeks to identify the causal effects of exporting on the changes in the share of non-regular workers and the growth of worker-hours (employment times working-hours) in Japanese manufacturing and wholesale sectors using extensive firm-level data. I employ a propensity score matching technique and investigate whether firms that start exporting experience higher increase in the share of non-regular workers and higher growth of worker-hours than do non-exporters. First, I find positive effects on the growth of worker-hours in manufacturing but not in wholesale. Second, contrary to public fears, I find little evidence that exporting results in the increase in the share of non-regular workers in both manufacturing and wholesale.

•Japan has experienced rapid growth of non-regular workers in the 2000s.•There are positive effects of exporting on labor growth in manufacturing.•There are little effects of exporting on the share of non-regular workers.