Banks Restructuring Sonata: How Capital Injection Triggered Labor Force Rejuvenation in Japanese Banks

摘要: Given divergent interests of managers and regulators, the agency problem is inherent in bank rescue operations that require banks to follow guidelines. This paper analyses extent nature Japanese capital injection program. We examine a hypothesis that, response requirements downsize, reassigned older workers near their retirement age subsidiaries, so as meet targeted amount downsizing, sidestep tight legal environment on layoffs. Our data panel dataset from 1990 through 2010. changes demographics by analyzing average employees reported financial statements, supplementing analysis with number at parent’s stand-alone basis well consolidated basis. The result shows injected exhibited workforce rejuvenation relative non-injected banks. Roughly, fell one year banks, which equivalent about seventy less 65-years old for an bank. While unconsolidated falls injection, we do not detect any effects finding suggests (1) life-time employment practice has evolved survived (2) productivity parent-bank level would have risen due rejuvenation.