The Diverging Political Pathways of Labor Market Reform in Japan and Korea

Abstract

In this article, I analyze diverging political pathways of labor market reform with an empirical focus on the cases of Japan and Korea. Despite similar trends of regulatory reform toward the increase of labor market flexibility, the patterns of labor market reform differed in the two countries. Japan adopted labor market liberalization for nonregular workers with the persistence of employment protection for regular workers. In contrast, Korea opted for regulatory reform for all workers while simultaneously strengthening workers' basic rights and improving protections for nonregular workers. I argue that the institutional features of the employment protection system determine the diverging patterns of labor market reform in Japan and Korea.