This paper describes several structural changes in the Japanese labor market and related institutional factors with special emphasis on the labor supplies of part-time workers and discouraged workers. We also discuss necessary reforms in the labor market and some implications of such structural changes on the conduct of monetary policy.
Keywords: Part-time worker; Discouraged worker; Japanese employment system; Unemployment
Views expressed in the paper are those of the authors and do not necessarily reflect those of the Bank of Japan or Institute for Monetary and Economic Studies.