JAPAN and The TLM MODEL : Adapting The Transitional Labour Market Theory to Japan

Abstract: Japanese employment structure has been transforming in the face of economic recession, difficulty in work/life balance and ageing society. The diversification in the forms of employment such as increasing non-regular employment has enhanced labor market flexibility in Japan while causing security challenges for most people. This paper intends to bring a new perspective to Japanese context by applying the Transitional Labour Market (TLM) framework in the form of five critical transitions over the life-course to clearly outline the deficiencies of current institutional arrangements and to lay some groundwork for analyzing good transitions in line with four principles (autonomy-solidarity-effectiveness-efficiency) of the TLM. Providing insights for the cross-regional transfers (between Europe and Asia) by extending the scope of the TLM is also aimed. The main question raised in this respect is about how to create a labour market which builds bridges rather than dead ends between various statuses inside and outside the labour market. This paper argues that it is important to develop tailor-made labour market arrangements in Japan targeting the vulnerable groups such as women and non-regular employees in line with the principles of the TLM model. Such a tailor-made approach will assist individuals manage the risks they face under the current labor market situation and help to achieve sustainability of the entire social system by decreasing the associated heavy costs. The findings state that together with the recent labor market reforms there has been a shift towards more activating policies in Japan which are favorable from the TLM perspective but close attention to the propositions of the solidarity principle is required.