Remaining Gender Inequality in New Graduate Hiring

Wataru Yoshida

National Institute of Population and Social Security Research

2025-07-04

Introduction

On myself


On my research

  • Studying new graduate hiring by Japanese firms
    • From sociological perspective
    • Focusing on (gender) inequality
    • Using firm-level panel data


Overview of gender inequality in Japan

Summary


Q. How would you summarize the current state of gender inequality in hiring new graduates in Japanese society?

Summary


Q. How would you summarize the current state of gender inequality in hiring new graduates in Japanese society?


My answer:

It is improving, but not enough.

Summary


Q. How would you summarize the current state of gender inequality in hiring new graduates in Japanese society?


My answer:

It is improving, but not enough.

Improvement: College enrollment rates

  • Increase in college enrollment rates among women since the 1990s
    • Narrowing the gender gap

Improvement: Legislative change


  • The amendment of the Act on Equal Opportunity and Treatment between Men and Women in Employment
    • Banned gender discrimination in recruitment and employment (Article 5, in 1997)
      • No more gendered track system (men for key roles, women for supporting roles)
    • Banned indirect gender discrimination (Article 7, in 2006)
      • No more height and weight requirements when not necessary


Summary


Q. How would you summarize the current state of gender inequality in hiring new graduates in Japanese society?


My answer:

It is improving, but not enough.

Not enough: Gender wage gap


Why has the progress been so slow?

‘One-demensional’ model

  • We can evaluate the gender inequality in each firm via a single criterion.
  • There are good firms and bad firms.
    • Good: Actively engaged in eliminating gender discrimination, providing many opportunities for women to advance their career, offering a healthy work-life balance, …
    • Bad: Gender discrimination is prevalent, male-oriented culture, flexible polices are barely accessible, …

Questioning ‘one-demensional’ model

  • Is that true?
    • Are good firms always doing good things?


  • Testing trickle-down hypotheses
    1. Women mangers ↑ ⇒ women new hires ↑ ? (吉田 2022, Paper #1)
    2. Generous WFPs ↑ ⇒ women new hires ↑ ? (吉田 2020, Paper #2)

Paper #1: Change agents or cogs in the machine?

  • Do women managers improve gender inequality in firms? (Cohen and Huffman 2007)
    • Change agents hypothesis answers Yes.


Paper #1: Change agents or cogs in the machine?

  • Do women managers improve gender inequality in firms?
    • Cogs in the machine hypothesis answers No.


Paper #1: RQ


  • Do women managers promote the hiring of women?


  • On the causal effects within a firm
    • “After the number of women managers in a given company increases, does the number of female hires at that company also increase?”

Paper #1: Data and variables


  • CSR Data by Toyo Keizai Inc.
    • Panel data for large listed firms in Japan
    • N = 5,000 (1,046 firms)


  • Outcome: % of women in new hires / gender gap in the retention rates (3 years)
  • Treatment: % of women in upper/lower management

Paper #1: Results on hiring

Low-level managers

  • Not significant

High-level managers

  • Not significant

Paper #1: Results on retention

Low-level managers

  • Negative effect

High-level managers

  • Positive effect

Paper #1: Conclusion


  • Do women managers promote the hiring of women?


  • No.
    • Each line manager has too limited rights on hiring.


Paper #2: Work-family policies (WFPs)

  • WFPs to support the balancing of work and family life
    • To facilitate women to continue their employment after marriage and childbirth

Paper #2: Welfare state paradox


Paper #2: RQ


  1. Do companies with more generous WFPs hire more women?
  2. Are the relationship between WFPs and women’s hiring affected by the company’s business conditions?


  • Analyzing the 2008 financial crisis and its aftermath

Paper #2: Data and variables

  • Shushoku Shikiho
    • Panel data for large firms in Japan
    • N = 1,690 (547 firms) from 2008 to 2011


  • Outcome: % of women in new hires
  • Treatment: Generosity of WFPs (Length of paid maternity/parental leave)

Paper #2: Results on RQ1

  • Not significant
    • No difference between the generosity of WFPs

Paper #2: Results on RQ2

Paper #2: Conclusion


  1. Do companies with more generous WFPs hire more women? - No.
  2. Are the relationship between WFPs and women’s hiring affected by the company’s business conditions? - Yes, but in a somewhat ironic way

Possible statistical discrimination (Phelps 1972)

  1. Many Japanese companies view the use of WFPs as an increase in labor costs. (Brinton and Mun 2016)
  2. They also believe most WFP users are women. (Brinton and Oh 2019; Goldstein-Gidoni 2019)
  3. Firms w/ generous WFPs would like to reduce their labor costs during the economic downturn.
  4. They do so by not hiring many women, as potential users of WFPs.

For the panel talk and discussion

Denying ‘One-demensional’ model

  • My papers deny the ‘one-dimensional’ model.
    • Good firms are not always doing good things.
    • No trickle-down effects


  • This could explain the slow progress in improving gender inequality in hiring.
    • Suggesting the need for equalizing measures specific to hiring
      • No one-size-fits-all solutions.
      • Then what solutions? - I hope we can discuss :)

Literature

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