Economic achievement of immigrants in Japan: Examining the role of country-of-origin and host-country-specific human capital in an inflexible labor market

Abstract

The economic integration of immigrants is a salient social issue in Japan. Although the US immigration literature has stressed the importance of host-country-specific human capital over country-of-origin human capital for immigrants, previous studies in Japan have shown mixed results about the effects of these two types of human capital on the economic integration of immigrants. The mixed results might be because previous studies focused on only specific immigrant groups (with regard to nationalities, cities, and visa status), human capital variables, and dimensions of economic achievements in the Japanese labor market. The segmented nature of the Japanese labor market structure and immigration policies create different pathways to “economic achievements” of immigrants depending on the dimension of “economic achievements” studied. By conducting a nationally representative social survey of Japanese immigrants, we examined the association between the two types of human capital (i.e., country-of-origin and host-country-specific) and the three indicators of labor market success: employment status and firm size, occupational status, and income. Our results indicate that host-country-specific human capital in the form of higher education and language proficiency is important for all three indicators of economic achievement in Japan, while country-of-origin human capital in the form of higher education and vocational skills is transferable to some extent. Our results suggest that the significance of human capital in immigrants' economic success is determined not only by the structure of the labor market but also by immigration policies.