Abstract ：
This study analyzes whether the activities of overseas affiliated companies promote Japanese employment. It compares the effect from these activities and the effect of outsourcing to unaffiliated companies and segments activities of overseas affiliated companies by sales destinations. Public concern that outsourcing abroad collapses Japan's domestic labor demand exists; however, counterarguments state no clear-cut evidence of this phenomenon and instead state that moving local production abroad arguably promotes Japanese labor demand.
We construct our data by matching four governmental surveys and estimating firm fixed effect analyses. Our findings are as follows. First, the effect of increasing imports of intermediate inputs is slightly greater than the effect of increasing sales of overseas affiliated companies. Second, increasing sales to Japan decreases the demand for less-educated workers and short-term workers in manufacturing. However, increases in local sales and sales to third countries increase the demand for more highly educated workers in service sectors. Third, the coefficient of wage indicates the complementary effect between less-educated and more highly educated female workers and workers in overseas affiliated companies and the substitute effect between less-educated male workers and workers abroad.

JEL codes: F16, J23