Labour Market and Dual Structure

Abstract

This chapter analyzes the changes in the labour market that have accompanied economic growth. In Section 9.1 we discuss industrialization — the rise in the importance of ‘industry’ in the national economy — a phenomenon that caused employment to shift from primary to non-primary industries. If the supply of labour is greater than demand the difference must become either unemployed or surplus labour. Japan absorbed a large pool of surplus labour as a result of high economic growth in the early post-war period. We analyze this process in Section 9.2. Wages and income shares are determined by demand and supply. In Section 9.3 historical changes in wages and wage differentials are discussed in relation to the dual structure theory. In Section 9.4 changes in relative income share of labour are argued.KeywordsReal WageWage DifferentialUnskilled WorkerIncome ShareDual StructureThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.