A Study on Changes in Japanese Regional Industrial Structure Based on the Composition of Employees

Abstract

Purpose: This study aims to analyze changes in the structure of local industries through changes in the number of employees by industry in Japan. This is to reason out the characteristics of the region through changes in the employment composition and labor productivity, noting that the region’s unique industrial structure is formed due to the natural environment and geographical conditions. Research design, data, and methodology: This study aims to characterize changes in the structure of local industries. The local economy varies in the pattern of changes in production structure depending on the type of production activity. To determine this, first, research design examines the situation of Japanese industrial structure. Second, the changes in local industries would be identified through changes in the composition of employees in each industry. Third, the relation with population changes that affect changes in industrial structure would be analyzed. Results: This study identified the characteristics of the local industrial structure by using variables such as employment composition, labor productivity, and population growth. As a result, first, the proportion of employed people in each industry was changing rapidly. Second, industrial structure change patterns appeared differently in areas of secondary industries and areas of tertiary industries. Third, there was a correlation between the rate of increase and decrease in population and employment. Each industry affected regional population changes in population inflow areas and population outflow areas in different ways, although the level of degree that regional population changes affects each industry was different. Implications: Industrial structure changes due to the various factors such as social structure. In particular, the composition of the local population by age plays an important role. This is because in the population inflow area, a virtuous cycle that attracts the new population is created by the ripple effect of the industry, but on the contrary, in the population outflow area, the decline of the industry quickly appears and it leads to a vicious cycle of the local economy.