Off to a good start: A comparative study of changes in men's first job prospects in East Asia

Abstract

Research on young adults’ transition to the labor market rarely investigates how nation-level institutional arrangements shape changes over time. In particular, a systematic comparison of shifts in young adults’ job opportunities in East Asia is virtually absent. Using comparable data from Japan, Korea, and Taiwan, we examine cohort differences in the timing, quality, and stability of men's first jobs. The results indicate overall declines in first occupational attainment for men in all three countries, but the main driving force for the decrease in Japan differs from that in Korea and Taiwan. Whereas macroeconomic pressure fully explains the decline in Japanese men's first occupational attainment, educational expansion accounts for a considerable part of the declines for men in Korea and Taiwan. Moreover, educational expansion has eroded better-educated men's advantages in speedily transitioning from school to work in Taiwan, but it has not had a similar effect on Japanese men. We argue that Japan's employment system, coupled with a fair amount of institutional ties between schools and firms, has shielded young men from the pressure of educational expansion, making the trends about their early-career outcomes different from those of their counterparts in Korea and Taiwan. The different degrees to which firm internal labor markets have been adopted in Japan, Korea, and Taiwan also explain how increasing macroeconomic pressure has different impacts on men's first job stability in East Asia.