Labour segmentation and outmigration in Japan: Evidence using firm–worker matching data

Published date01 April 2023
AuthorYang Liu
Date01 April 2023
DOIhttp://doi.org/10.1111/imig.12988
International Migration. 2023;61:123–137.
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123
wileyonlinelibrary.com/journal/imig
INTRODUCTION
Conventional ne oclassical eco nomics asser t that labourers migrate from p oor to wealthy regio ns (e.g., Harris &
Toda ro, 1970; Todaro, 1969), whereas both sup portive and conflic ting facts have bee n found in this regard. Bor jas
and Bratsberg (1996) developed an out migration mod el, considerin g that the expec ted wages of migr ants are
Received: 6 Janu ary 2022 
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  Accepted: 8 Febru ary 2022
DOI: 10.1111/imig.12988
ORIGINAL ARTICLE
Labour segmentation and outmigration in Japan:
Evidence using firm– worker matching data
Yan g L iu
© 2022 The Auth or. International Migr ation © 2022 IOM
Research Ins titute of Economy, Trade and
Industr y, Ministry of Economy, Trade and
Industr y (METI), Tokyo, Japan
Correspondence
Yang Liu, Researc h Institute of Economy,
Trade and Indust ry, 11th floor, Annex,
Ministry of E conomy, Trade and Industr y
(METI), 1- 3- 1, Kasumigaseki Chiyod a- ku,
Tokyo, 100- 8901, Japan.
Email: liu-yang@rieti.go.jp
Funding information
Japan Societ y for the Promotion o f Science,
Grant/Award Num ber: JP 16K17144
Abstract
Determinants of fore igner outmigrati on from host coun-
tries have attracted considerable attention. However,
minimal research examines the influence of firms’ work-
ing environment s. Although the third larges t economy,
Japan's inabilit y to attrac t skilled foreign labour remains a
concern. This stud y is the first to inves tigate the effec t of
Japanese firms’ lab our segmentatio n practices on for eign
workers’ outmigration intentions. Segmentation refers to
firms’ concentration on foreigner- specific skills, regarding
foreign la bour as comple mentary to local workers. This is
widely pract ised because of immigration p olicy's avoidance
of substituting Japanese labour or causing unemployment.
The findings suggest that although foreigner- specific skills
are highly valued in Jap an, segmentation could signif icantly
increase for eign workers’ outmigrat ion intention. The life-
time employment system in Japan, job satisfaction and
original migration m otivations also affe ct outmigratio n.
The results indic ate that Japanese po licies encouragin g
firms to employ forei gn workers as complementary may
harm its attr activeness to skilled foreign labou r.

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