How to Get a Longer Job? Roles of Human and Social Capital in the Japanese Labor Market

This article investigates the roles of human and social capital played in the Japanese labor market. Our research question is whether they interact to accelerate or decelerate each other to provide first jobs of a long duration. Based on the literature, we focus on the bonding functions of friends and relatives. Using the 2005 Social Stratification and Social Mobility Survey Data, we measure human capital by educational attainment (college education) and social capital by job search methods (using friends or relatives). The dependent variable is the hazard rate of turnover from the first job. We find that social capital especially benefits those with low human capital (high school graduates). When friends or relatives introduce workers to jobs, high school graduates tended to stay longer in their first jobs and had a lower turnover than college graduates did. This means that social capital decelerated effects of human capital. Therefore, in the Japanese labor market, social capital plays a complementary role in mitigating educational disadvantage.