A Comparison of Causes

Employment in nonstandard work arrangements, especially part-time employment, grew dramatically in Japan over the last two decades, and in recent years, nonstandard jobs have accounted for the overwhelming majority of new jobs in Japan. Although growth in non-standard employment was not as great in the United States, evidence suggests that the share in certain nonstandard arrangements, especially temporary agency employment, expanded rapidly in the 1980s and 1990s. In this chapter, we examine whether the growth in nonstandard employment in these two countries reflects similar or unrelated forces, and, as a corollary, why the growth in nonstandard employment was so much greater in Japan than in the United States. In particular, we look at potential causes of this growth: a shift in employer demand toward arrangements that increase productivity and reduce labor costs; a shift in the supply of workers seeking more flexible staffing arrangements; and government policies promoting the expansion of nonstandard employment. Finally, we examine the implications of the growth in nonstandard employment for workers. 176 Houseman and Osawa DEFINITIONS OF NONSTANDARD EMPLOYMEN