Organizational linkages in Japan’s female labor market: Information exchanged in networks

Abstract

The form of institutional linkages between schools and employers changed during the decade-long economic recession in Japan. This article explores why institutional linkages between women’s colleges and large Japanese firms in the secondary labor market have survived, despite a long-term restraining of labor demand. From a network theory perspective, employers value information about applicants’ residency status, as it is conducive to reducing personnel management costs; information can be reliably obtained via these institutional linkages. Employers expect schools to use such information to select nominees. By using the data from the school’s applicant pool, the results from logistic regression analysis showed that schools tend to nominate candidates who are living with their parents, and no candidates who lived without parents were hired. Additionally, a candidate’s academic performance and personality evaluation, which can also be obtained through the linkages, as well as more formal recruitment processes, did not have a significant impact on employee selection.