Japan's Labor Market Reform after the Collapse of the Bubble Economy: Political Determinants of Regulatory Changes

Abstract

This article analyzes Japan's labor market reform in response to its protracted recession, focusing on the institutional configuration of policymaking. It argues that although the centralization of decision-making authority bypassed bureaucracy-led policymaking, policy coordination with coalition partners and political compromise with opposition parties prevented across-the-board labor market deregulation in Japan.