Presentation
Beyond Employment Polarization?: Intermediate Employment Categories and Transitions from Non-regular to Regular Status in Japan
TAKAHASHI Koji (JILPT) and members of JILPT’s research project on “Diversified Types of Employment” organized and participated in a special session at the 11th International Labour and Employment Relations Association (ILERA) Asian Regional Congress,
held in Tokyo on September 4, 2026.
*Both abstracts (reproduced from the conference program) and presentation slides are uploaded on the website with the permission of the presenters.
Participants
- TAKAHASHI Koji
- Japan Institute for Labour Policy and Training (JILPT) (organizer & presenter)
- HIRAMOTO Naoko
- Kokushikan University (presenter)
- FUKUI Yasutaka
- Nagoya University (presenter)
- MORIKAWA Yuriko
- The University of Tokyo (presenter)
- NISHINO Fumiko
- Hitotsubashi University (presenter)
- HIRAO Shizuka
- Hitotsubashi University (chair)
Session Summary
Non-regular employment has expanded in Japan as a downside of Japanese-style employment practices, which are characterized by long-term employment and seniority-based compensation for regular workers. In particular, the rapid increase in young non-regular workers following labor market deregulation since the late 1990s, together with their relatively poor working conditions, has attracted attention as a sign of employment polarization.
In response, labor laws were re-regulated in the 2010s to improve working conditions for non-regular workers. Nevertheless, the share of non-regular employment remains high, and wage gaps across employment types persist, although they have narrowed slightly. On the other hand, firms have introduced regular positions with limited job duties and lower wage levels, while permanently employed non-regular workers have become more prevalent following re-regulation. Transitions from non-regular to regular employment also appear to have become accessible to a wider range of workers.
To assess whether Japan is moving beyond employment polarization, we need to clarify the realities of these intermediate employment categories—situated between conventional regular and non-regular employment—and broadening pathways to regular status, from multidisciplinary perspectives.
This panel aims to deepen international understanding of this theme by presenting recent evidence from quantitative and qualitative surveys conducted by a JILPT study group. Topics include statistical trends in regular and non-regular employment; personnel management practices involving diversified categories of regular workers and permanently employed non-regular workers; compensation, job satisfaction, and career aspirations among these workers; and skill formation and career trajectories of those transitioning from non-regular to regular employment, including middle-aged women.
Presentation (1) Introduction: Employment Polarization and Its Changes after the Mid-2010s in Japan
TAKAHASHI Koji (JILPT) and OKAMOTO Takeshi (Oita University)
In this special session, the five presentations collectively examine whether Japan is moving beyond employment polarization.
As an introduction to the session, the presenters will explain the concept of Japanese-style employment practices; the definitions and history of regular and non-regular employment; changes in the labor market, including the expansion of non-regular employment and the ongoing labor shortage; and deregulation and re-regulation of labor policies since the late 1990s. In addition, a brief overview of official statistics relevant to the session, basic tabulations showing the use of each type of regular and non-regular employment by industry and firm size, and guidance for the following four presentations and the data used in them will also be provided.
Employment Polarization and Its Changes after the Mid-2010s in Japan (PDF:512KB)
Presentation (2) Intermediate Employment Categories and Human Resource Management in Japan: HRM Practices across Employment Categories and Conversion Pathways
HIRAMOTO Naoko (Kokushikan University)
As Japan's labor market has become increasingly diversified beyond the traditional regular/non-regular divide, two intermediate employment categories have emerged. "Diverse forms of regular employees (limited regular employees)"—regular employees with restrictions on job duties, work location, or working hours—were introduced to accommodate diverse work styles, including work-life balance needs, and to serve as a pathway to regular status for non-regular employees. "Permanently employed non-regular employees," on the other hand, became more prevalent following the introduction of the conversion from fixed-term to permanent contract under the amended Labor Contract Act in the 2010s. While both categories are situated between conventional regular and non-regular employment, their formation backgrounds and managerial purposes differ substantially.
This study aims to clarify the realities of HRM practices associated with these intermediate employment categories from a comparative perspective, drawing on data from a firm-level survey conducted by JILPT.
Using this dataset, the study first provides an overview of HRM practices—including recruitment methods, education and training, job reassignment, and wage systems—across all employment categories, before focusing on the two intermediate categories. Specifically, it examines whether HRM practices differ depending on the presence or absence of a conversion pathway from fixed-term contracts. Through this analysis, the study aims to shed light on the diversity and complexity of human resource management within intermediate employment categories, going beyond the conventional regular/non-regular dichotomy.
Presentation (3) Dualisation in Decentralized Wage-setting Regime: Within-Firm Wage Penalty for Non-regular Workers in Japan
FUKUI Yasutaka (Nagoya University)
Dualisation has been progressed in many developed countries with various institutional settings. In Japan, which is characterized by decentralized labor relations and firm internal labor market, the boundaries between standard and non-standard employment are defined through the introduction of employment classification systems by companies. An increasing number of companies are subdividing the traditional Japanese-style insider-outsider distinction between regular and non-regular employees, establishing multiple employment categories within each group, and applying different pay schedules to employees in each category. To complement these corporate initiatives, the Japanese government has introduced rules requiring the conversions from fixed-term to permanent contracts, as well as measures ensuring equitable treatment between regular and non-regular employees within the same company.
Against this backdrop, measuring wage disparities among permanent employees within the same firm has become a critical issue. This study measured within-firm wage disparities among traditional regular employees, diverse forms of regular employees, and non-regular employees on permanent contracts. In fixed-effects estimates incorporating firm fixed effects to a sample of workers with the same work as traditional regular employees, a wage penalty of 32% for full-time non-regular workers and 48% for part-time non-regular workers are found. However, there is no wage gap between traditional regular employees and diverse forms of regular employees. These results suggest that dualisation is institutionalized within the firm internal labor market and durable inequality for non-regular employees persists even among workers with permanent basis.
Presentation (4) Stability Is Not Enough: Job Satisfaction after Conversion to Open-Ended Non-Regular Employment in Japan
MORIKAWA Yuriko (The University of Tokyo)
This study examines whether employment stabilization through conversion from fixed-term to open-ended non-regular contracts improves job satisfaction among non-regular workers. Job satisfaction is important not only for workers’ well-being but also for organizational outcomes such as productivity. Fixed-term non-regular employment has long been associated with employment insecurity and, consequently, lower job satisfaction. In Japan, however, recent institutional arrangements allow fixed-term workers to obtain open-ended contracts after a certain period of service, increasing employment stability, which is expected to improve job satisfaction, yet this expectation remains empirically unverified. To assess this, the study compares job satisfaction between non-regular workers who were initially hired on open-ended non-regular contracts and those who converted from fixed-term to open-ended non-regular contracts, using survey data from non-regular employees. The results show that, although contract conversion is associated with greater perceived employment stability, converted workers report significantly lower job satisfaction than comparable workers who were initially hired on open-ended non-regular contracts. Additional analyses suggest that this pattern is partly explained by relative deprivation and the lack of wage increases after conversion. The association remains robust even after controlling for perceived improvement in employment stability after conversion. These findings indicate that while contract conversion may improve employment security, it is not sufficient to enhance job satisfaction unless accompanied by wage improvements.
Presentation (5) New Dynamics of Transition from Non-regular to Regular Employment in Japan: Findings on the "Ice Age" Generation and Mid-career Women
NISHINO Fumiko (Hitotsubashi University)
The dualisation of Japan's labor market—the gap between regular and non-regular workers—remains a critical issue characterized by disparities in wages, skill development, and career progression. Historically, this landscape has been defined by the "Employment Ice Age" generation and the "L-shaped curve" affecting women re-entering the workforce. While government policies and recent labor shortages have increased transitions to regular employment, the qualitative aspects of these shifts—individual trajectories and mindsets—remain under-explored.
This study addresses this lacuna using interview data from 20 individuals who transitioned to regular status within the last three years (10 via internal promotion; 10 through mid-career recruitment). The analysis reveals two primary findings:
- A significant number of "Ice Age" generation workers are finally securing regular positions after prolonged periods of instability.
- Successful transitions are increasing among mid-career women, including those in their mid-40s or older, who previously faced formidable barriers.
Regarding mindsets, while workers perceive the transition as a positive "step up" due to improved job security and benefits, the study reveals that increases in annual income remain relatively modest. Consequently, a sense of ambivalence emerges: while appreciating the stability, many feel anxious and overwhelmed by the heightened responsibilities and skills expected of regular employees, which are not accompanied by a commensurate rise in salary. The results reveal a structural paradox where individuals secure the "regular" label yet remain trapped in low-wage career tracks, highlighting that employment status conversion does not necessarily resolve the long-term socioeconomic disadvantages faced by these marginalized groups.
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