Occupational Structure and Social Stratification in East Asia: A Comparative Study of Japan, Korea and Taiwan

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Occupational Structure and Social Stratification in East Asia: A Comparative Study of Japan, Korea and Taiwan International Joint Symposium on Socio-political Transformation in Globalizing Asia: Integration or Conflict? On Feb.21 2008 at Waseda University Shin ARITA (University of Tokyo)

2 Significance of Comparative Studies of East Asian Societies Structures of the East Asian societies are similar to each other in a broad sense. This makes it possible to compare these societies in a common framework. They also have a lot of subtle differences. Comparison of East Asian societies can thoroughly reveal the characteristics of these societies.

A Comparison of Social Stratification in East Asia These advantages also apply to social stratification studies. e.g. kakusa-shakai (gap-widening society: Japan), yang-geuk-hwa sa-hoe (polarized society: Korea) The primary question would be what social stratification system each society has. This question is interrelated with what kind of class scheme should be applied to East Asian societies. 3

Relationship between Occupational Structure and Social Stratification: A Example of SSM Synthetic Classification SSM synthetic occupational classification: (1) A kind of class scheme developed to adequately analyze social stratification in Japan (2) Distinction of employment status and company size as well as occupation in a narrow sense A class scheme based on only occupation in a narrow sense does not have enough connection to reality in Japan. (Seiyama, Tsuzuki and Sato 1988) 4

Features of Labor Market in Japan Which Affect Social Stratification System Wide gaps between large and small companies in wage and prestige etc. High probability of promotion from clerks to managerial jobs Large urban self-employment sector The SSM synthetic classification has been invented to capture these effects on social stratification system in Japan. These features are also found with regard to labor markets in Korea and Taiwan to a greater or lesser extent. 5

6 A Research Question A research question in this presentation: What differences in social status do individual s occupation (in a narrow sense), employment status and company size make in Japan, Korea and Taiwan?

7 Data and methods Data: SSM survey data in Japan, Korea and Taiwan in 2005 (Workers only) Dependent variables: Individual income (logged), Subjective class consciousness (10 levels), Educational level (years) Independent variables: Occupation: ISCO major groups (1 to 9) Employment status: employer and self-employed vs. employed Sector: private vs. public Company size: very small(-4), small(5-29), medium(30-299), big(300-999), very big(1000-) Methods: Comparison of means, Multiple regression and model selection

8 Comparison by Occupation: Japan Figure 1-1. Comparison by Occupation: Japan 1.5 1 0.5 0-0.5-1 Senior officials, managers Professionals Technicians, associate professionals Clerks Service and sales workers Skilled agricultural workers Craft and related trade workers Plant and machine operators Elementary occupations Log Income Class Consciousness Education (years)

Comparison by Occupation: Korea Figure 1-2. Comparison by Occupation: Korea 1.5 1 0.5 0-0.5-1 -1.5 Senior officials and managers Professionals Technicians and associate professionals Clerks Service and sales workers Skilled agricultural and fishery workers Craft and related trade workers Plant and machine operators and asse... Elementary occupations Log Income Class Consciousness Education (years) 9

Comparison by Occupation: Taiwan Figure 1-3. Comparison by Occupation: Taiwan 1.5 1 0.5 0-0.5-1 -1.5 Senior officials and managers Professionals Technicians and associate professionals Clerks Service and sales workers Skilled agricultural and fishery workers Craft and related trade workers Plant and machine operators and assem... Elementary occupations Log Income Class Consciousness Education (years) 10

Comparison by employment status, sector and company size: Japan Figure 2-1. Comparison by status, sector and size: Japan 1.5 1 0.5 0-0.5-1 Self-employed, employers Family workers Employed (1-4) Employed (5-29) Employed (30-299) Employed (300-999) Employed (1000-) Employed (public) Log Income Class Consciousness Education (years) 11

Comparison by employment status, sector and company size: Korea Figure 2-2. Comparison by status, sector and size: Korea 1.5 1 0.5 0-0.5-1 -1.5 Self-employed, employers Family workers Employed (1-4) Employed (5-29) Employed (30-299) Employed (300-999) Employed (public) Employed (1000-) Log Income Class Consciousness Education (years) 12

Comparison by employment status, sector and company size: Taiwan Figure 2-3. Comparison by status, sector and size: Taiwan 1.5 1 0.5 0-0.5-1 -1.5 Self-employed, employers Family workers Employed (1-4) Employed (5-29) Employed (30-299) Employed (300-999) Employed (1000-) Employed (public) Log Income Class Consciousness Education (years) 13

Table 1. Regression Analysis of Log Income ***p<.001, **p<.01, *p<.05 14 Japan (N=3,310) Korea (N=969) Taiwan (N=3,246) Model 1 Model 2 Model 1 Model 2 Model 1 Model 2 B B B B B B Constant 13.243 *** 13.145 *** 14.606 *** 14.199 *** 9.606 *** 9.135 *** Female -0.895 *** -0.889 *** -0.617 *** -0.553 *** -0.343 *** -0.292 *** Age 0.057 *** 0.056 *** 0.078 *** 0.067 *** 0.122 *** 0.115 *** Age square -0.001 *** -0.001 *** -0.001 *** -0.001 *** -0.001 *** -0.001 *** Senior officials, managers 0.891 *** 0.870 *** 0.596 ** 0.504 ** 1.399 *** 1.155 *** Professionals 0.833 *** 0.804 *** 0.849 *** 0.590 *** 1.000 *** 0.670 *** Technicians, associate professiona 0.495 *** 0.481 *** 0.364 ** 0.183 0.762 *** 0.535 *** Clerks 0.510 *** 0.496 *** 0.597 *** 0.480 *** 0.606 *** 0.408 *** Service and sales workers 0.152 ** 0.146 ** 0.459 *** 0.392 *** 0.356 *** 0.260 *** Skilled agricultural workers 0.228 *** 0.228 *** -0.051 0.028-0.270 *** -0.253 *** Craft and related trade workers 0.259 *** 0.262 *** 0.271 * 0.258 * 0.428 *** 0.383 *** Plant and machine operators 0.246 *** 0.247 *** 0.281 * 0.269 * 0.357 *** 0.295 *** Elementary occupations (reference) (reference) (reference) Self-employed, employers 0.430 *** 0.428 *** 0.468 *** 0.447 *** 0.391 *** 0.347 *** Family workers -0.062-0.065 0.306 * 0.328 * 0.246 *** 0.202 *** Employed (1-4) (reference) (reference) (reference) Employed (5-29) 0.143 * 0.145 * 0.286 ** 0.297 ** 0.329 *** 0.292 *** Employed (30-299) 0.306 *** 0.305 *** 0.506 *** 0.469 *** 0.380 *** 0.316 *** Employed (300-999) 0.480 *** 0.477 *** 0.592 *** 0.561 *** 0.484 *** 0.394 *** Employed (1000-) 0.518 *** 0.514 *** 0.701 *** 0.651 *** 0.639 *** 0.536 *** Employed (public) 0.535 *** 0.529 *** 0.454 ** 0.426 ** 0.701 *** 0.578 *** Education (years) - 0.009-0.047 *** - 0.053 *** R 2 0.470 0.471 0.341 0.357 0.397 0.418

Table 2. Regression Analysis of Class Consciousness Japan (N=3,248) Korea (N=969) Taiwan (N=3,225) Model 1 Model 2 Model 3 Model 1 Model 2 Model 3 Model 1 Model 2 Model 3 B B B B B B B B B Constant 3.744 *** 2.723 *** -1.833 ** 4.732 *** 3.993 *** -2.853 * 3.745 *** 2.731 *** -1.114 * Female 0.219 *** 0.280 *** 0.588 *** 0.106 0.221 + 0.488 *** 0.139 * 0.246 *** 0.370 *** Age 0.042 ** 0.033 * 0.013-0.015-0.034-0.067 * 0.006-0.008-0.056 *** Age square 0.000 * 0.000 0.000 0.000 0.000 0.001 + 0.000 0.000 0.001 *** Senior officials, managers 1.154 *** 0.936 *** 0.633 *** -0.055-0.222-0.465 2.096 *** 1.574 *** 1.085 *** Professionals 0.995 *** 0.702 *** 0.420 ** 1.422 *** 0.952 ** 0.668 * 2.010 *** 1.308 *** 1.026 *** Technicians, associate professiona 0.665 *** 0.512 *** 0.346 ** 0.691 * 0.363 0.275 1.343 *** 0.860 *** 0.635 *** Clerks 0.693 *** 0.549 *** 0.377 ** 0.734 ** 0.522 * 0.291 1.172 *** 0.750 *** 0.580 *** Service and sales workers 0.151 0.088 0.041 0.360 0.238 0.049 0.777 *** 0.575 *** 0.467 *** Skilled agricultural workers 0.477 ** 0.483 ** 0.406 * -0.253-0.110-0.123 0.020 0.063 0.173 Craft and related trade workers 0.186 0.217 + 0.131 0.066 0.043-0.081 0.663 *** 0.572 *** 0.411 *** Plant and machine operators 0.115 0.126 0.039 0.117 0.096-0.033 0.560 *** 0.430 *** 0.308 * Elementary occupations (reference) (reference) (reference) Self-employed, employers 0.222 0.205 0.060 0.806 *** 0.769 *** 0.554 * 0.334 ** 0.240 * 0.090 Family workers 0.060 0.040 0.070 0.851 ** 0.891 ** 0.733 * 0.505 *** 0.412 *** 0.322 ** Employed (1-4) Employed (5-29) -0.119 (reference) -0.103-0.148 0.420 + (reference) 0.439 + 0.296 0.295 ** (reference) 0.217 * 0.091 Employed (30-299) -0.002-0.011-0.113 0.612 * 0.543 * 0.318 0.262 * 0.126-0.010 Employed (300-999) 0.253 0.223 0.061 0.921 ** 0.864 * 0.594 + 0.328 * 0.136-0.034 Employed (1000-) 0.265 + 0.228 0.055 0.783 ** 0.691 * 0.377 0.465 *** 0.246 * 0.017 Education (years) - 0.095 *** 0.093 *** - 0.085 *** 0.063 ** - 0.115 *** 0.092 *** Log income - - 0.347 *** - - 0.482 *** - - 0.421 *** R 2 0.070 0.081 0.100 0.146 0.161 0.203 0.180 0.213 0.247 ***p<.001, **p<.01, *p<.05 15

Relative Impact of Each Variable Table 3. Relative Impact of Each Variable: Changes in R square by removing the variable(s) Log income Japan Korea Taiwan R 2 R 2 R 2 R 2 R 2 R 2 Base Model (Model 2 in Table 1)0.471 0.357 0.418 -Occupation 0.419-0.052 0.333-0.024 0.359-0.060 -Status, sector and size 0.436-0.035 0.335-0.022 0.395-0.024 -Education (years) 0.470-0.001 0.341-0.016 0.397-0.021 Class Consciousness Japan Korea Taiwan R 2 R 2 R 2 R 2 R 2 R 2 Base Model (Model 3 in Table 2)0.100 0.203 0.247 -Occupation 0.091-0.009 0.192-0.011 0.230-0.016 -Status, sector and size 0.098-0.003 0.195-0.008 0.244-0.003 -Education (years) 0.090-0.010 0.195-0.008 0.226-0.020 -Log income 0.081-0.019 0.161-0.043 0.213-0.034 16

17 More Parsimonious Models: Categorization Table 4. Recategorization of employment status, sector and company size in more parsimonious models No. Self- Family Employed Cut Points of employed worker Private Public Cate- and Very Medium Large Very gories employer Small Small (30- (300- Large (1-4) (5-29) 299) 999) (1000-) a All 8 0 1 2 3 4 5 6 7 b Self-employed/Employed 2 0 0 1 1 1 1 1 1 c Self-employed/Private/Public 3 0 0 1 1 1 1 1 2 d Self-employed/1-29/30-299/300-4 0 0 1 1 2 3 3 3 e Self-employed/1-999/1000-3 0 0 1 1 1 1 2 2 f Self-employed/1-299/300-3 0 0 1 1 1 2 2 2 g Self-employed/1-29/30-299/300-3 0 0 1 1 2 2 2 2 h Self-employed/1-4/5-3 0 0 1 2 2 2 2 2

18 More Parsimonious Models: Japan Table 5-1. Regression of More Parsimonious Models: Japan No. of Log Income Status Consciousness Japan Independent Variables R 2 R 2 (vs 0) R 2 (vs 1a) R 2 R 2 (vs 0) R 2 (vs 1a) 0 Base Model 11 0.434 - -0.036 *** 0.062 - -0.008 *** 1a +Distinction of All Categories 18 0.470 0.036 *** - 0.070 0.008 *** - 1b +Self-employed/Employed 12 0.434 0.000-0.036 *** 0.063 0.001-0.007 *** 1c +Self-employed/Private/Public 13 0.438 0.004 *** -0.032 *** 0.064 0.002 + -0.006 *** 1d +Self-employed/1-29/30-299/300-14 0.457 0.023 *** -0.013 *** 0.069 0.007 *** -0.001 1e +Self-employed/1-999/1000-13 0.446 0.012 *** -0.024 *** 0.066 0.004 *** -0.004 * 1f +Self-employed/1-299/300-13 0.452 0.018 *** -0.018 *** 0.069 0.007 *** -0.001 1g +Self-employed/1-29/30-299/300-13 0.451 0.016 *** -0.019 *** 0.066 0.004 *** -0.004 * 1h +Self-employed/1-4/5-13 0.440 0.005 *** -0.031 *** 0.063 0.001-0.007 *** ***p<.001, **p<.01, *p<.05 (Note)Base model consists of age, age square, sex and occupation (9 categories).

19 More Parsimonious Models: Korea Table 5-2. Regression of More Parsimonious Models: Korea No. of Log Income Status Consciousness Korea Independent Variables R 2 R 2 (vs 0) R 2 (vs 1a) R 2 R 2 (vs 0) R 2 (vs 1a) 0 Base Model 11 0.314 - -0.027 *** 0.130 - -0.016 * 1a +Distinction of All Categories 18 0.341 0.027 *** - 0.146 0.016 * - 1b +Self-employed/Employed 12 0.316 0.001-0.026 *** 0.136 0.006 * -0.010 + 1c +Self-employed/Private/Public 13 0.316 0.002-0.026 *** 0.136 0.006 * -0.010 * 1d +Self-employed/1-29/30-299/300-14 0.334 0.019 *** -0.008 * 0.141 0.012 ** -0.005 1e +Self-employed/1-999/1000-13 0.323 0.009 * -0.019 *** 0.137 0.007 + -0.009 * 1f +Self-employed/1-299/300-13 0.325 0.011 ** -0.016 *** 0.139 0.009 * -0.007 * 1g +Self-employed/1-29/30-299/300-13 0.333 0.019 *** -0.009 ** 0.141 0.011 * -0.005 1h +Self-employed/1-4/5-13 0.329 0.015 *** -0.013 *** 0.142 0.012 ** -0.004 ***p<.001, **p<.01, *p<.05 (Note)Base model consists of age, age square, sex and occupation (9 categories).

20 More Parsimonious Models: Taiwan Table 5-3. Regression of More Parsimonious Models: Taiwan No. of Log Income Status Consciousness Taiwan Independent Variables R 2 R 2 (vs 0) R 2 (vs 1a) R 2 R 2 (vs 0) R 2 (vs 1a) 0 Base Model 11 0.361 - -0.036 *** 0.172 - -0.008 *** 1a +Distinction of All Categories 18 0.397 0.036 *** - 0.180 0.008 *** - 1b +Self-employed/Employed 12 0.361 0.000-0.036 *** 0.172 0.000-0.008 *** 1c +Self-employed/Private/Public 13 0.373 0.012 *** -0.024 *** 0.176 0.004 *** -0.005 ** 1d +Self-employed/1-29/30-299/300-14 0.386 0.025 *** -0.011 *** 0.177 0.005 *** -0.004 ** 1e +Self-employed/1-999/1000-13 0.383 0.022 *** -0.014 *** 0.177 0.005 *** -0.003 ** 1f +Self-employed/1-299/300-13 0.383 0.022 *** -0.014 *** 0.176 0.004 ** -0.004 ** 1g +Self-employed/1-29/30-299/300-13 0.379 0.018 *** -0.018 *** 0.175 0.003 * -0.006 *** 1h +Self-employed/1-4/5-13 0.380 0.020 *** -0.017 *** 0.176 0.004 ** -0.004 ** ***p<.001, **p<.01, *p<.05 (Note)Base model consists of age, age square, sex and occupation (9 categories).

Status and size Professionals Agriculture Status and size Professionals Manegerial Agriculture 21 An Application of the Synthetic Classification Scheme: Composition Figure 2. Composition of Synthetic Classification Scheme (1) 8 categories version (2) 9 categories version Selfemployment Employed in small companies Employed in large companies Occupation Occupation ISCO ISCO ISCO ISCO ISCO ISCO ISCO ISCO ISCO 2 1, 3, 4 5, 7-9 6 2 1 3, 4 5, 7-9 6 White collar Blue collar Selfemployme White collar Blue collar selfemployeemployed self- self- self- nt White collars in small White collars in large Blue collars in small companies Blue collars in large companies Employed in small companies Employed in large companies employed White collars in small White collars in large employed Blue collars in small companies Blue collars in large companies Note: Cut points on company size are 300 in Japan, 30 in Korea, and 1,000 in Taiwan.

(Note)Base model consists of age, age square, sex and occupation (9 categories). 22 An Application of the Synthetic Classification Scheme: Japan Table 6-1. An Application of the Synthetic Classification Scheme: Japan No. of Log Income Status Consciousness Japan Independent Variables R 2 R 2 (vs 0) R 2 (vs 1a) R 2 R 2 (vs 0) R 2 (vs 1a) 0 Base Model 11 0.434 - -0.036 *** 0.062 - -0.008 *** 1a +Distinction of All Categories 18 0.470 0.036 *** - 0.070 0.008 *** - 1b +Self-employed/Employed 12 0.434 0.000-0.036 *** 0.063 0.001-0.007 *** 1c +Self-employed/Private/Public 13 0.438 0.004 *** -0.032 *** 0.064 0.002 + -0.006 *** 1d +Self-employed/1-29/30-299/300-14 0.457 0.023 *** -0.013 *** 0.069 0.007 *** -0.001 1e +Self-employed/1-999/1000-13 0.446 0.012 *** -0.024 *** 0.066 0.004 *** -0.004 * 1f +Self-employed/1-299/300-13 0.452 0.018 *** -0.018 *** 0.069 0.007 *** -0.001 1g +Self-employed/1-29/30-299/300-13 0.451 0.016 *** -0.019 *** 0.066 0.004 *** -0.004 * 1h +Self-employed/1-4/5-13 0.440 0.005 *** -0.031 *** 0.063 0.001-0.007 *** Synthetic Classification: 8 Categories 10 0.437 - - 0.065 - - Synthetic Classification: 9 Categories 11 0.447 - - 0.068 - - ***p<.001, **p<.01, *p<.05

23 An Application of the Synthetic Classification Scheme: Korea Table 6-2. An Application of the Synthetic Classification Scheme: Korea No. of Log Income Status Consciousness Japan Independent Variables R 2 R 2 (vs 0) R 2 (vs 1a) R 2 R 2 (vs 0) R 2 (vs 1a) 0 Base Model 11 0.314 - -0.027 *** 0.130 - -0.016 * 1a +Distinction of All Categories 18 0.341 0.027 *** - 0.146 0.016 * - 1b +Self-employed/Employed 12 0.316 0.001-0.026 *** 0.136 0.006 * -0.010 + 1c +Self-employed/Private/Public 13 0.316 0.002-0.026 *** 0.136 0.006 * -0.010 * 1d +Self-employed/1-29/30-299/300-14 0.334 0.019 *** -0.008 * 0.141 0.012 ** -0.005 1e +Self-employed/1-999/1000-13 0.323 0.009 * -0.019 *** 0.137 0.007 + -0.009 * 1f +Self-employed/1-299/300-13 0.325 0.011 ** -0.016 *** 0.139 0.009 * -0.007 * 1g +Self-employed/1-29/30-299/300-13 0.333 0.019 *** -0.009 ** 0.141 0.011 * -0.005 1h +Self-employed/1-4/5-13 0.329 0.015 *** -0.013 *** 0.142 0.012 ** -0.004 Synthetic Classification: 8 Categories 10 0.322 - - 0.140 - - Synthetic Classification: 9 Categories 11 0.323 - - 0.141 - - ***p<.001, **p<.01, *p<.05 (Note)Base model consists of age, age square, sex and occupation (9 categories).

An Application of the Synthetic Classification Scheme: Taiwan Table 6-3. An Application of the Synthetic Classification Scheme: Taiwan No. of Log Income Status Consciousness Japan Independent Variables R 2 R 2 (vs 0) R 2 (vs 1a) R 2 R 2 (vs 0) R 2 (vs 1a) 0 Base Model 11 0.361 - -0.036 *** 0.172 - -0.008 *** 1a +Distinction of All Categories 18 0.397 0.036 *** - 0.180 0.008 *** - 1b +Self-employed/Employed 12 0.361 0.000-0.036 *** 0.172 0.000-0.008 *** 1c +Self-employed/Private/Public 13 0.373 0.012 *** -0.024 *** 0.176 0.004 *** -0.005 ** 1d +Self-employed/1-29/30-299/300-14 0.386 0.025 *** -0.011 *** 0.177 0.005 *** -0.004 ** 1e +Self-employed/1-999/1000-13 0.383 0.022 *** -0.014 *** 0.177 0.005 *** -0.003 ** 1f +Self-employed/1-299/300-13 0.383 0.022 *** -0.014 *** 0.176 0.004 ** -0.004 ** 1g +Self-employed/1-29/30-299/300-13 0.379 0.018 *** -0.018 *** 0.175 0.003 * -0.006 *** 1h +Self-employed/1-4/5-13 0.380 0.020 *** -0.017 *** 0.176 0.004 ** -0.004 ** Synthetic Classification: 8 Categories 10 0.343 - - 0.152 - - Synthetic Classification: 9 Categories 11 0.369 - - 0.163 - - ***p<.001, **p<.01, *p<.05 (Note)Base model consists of age, age square, sex and occupation (9 categories). 24

25 Concluding Remarks Social stratification system in East Asian societies are similar to each other in general terms. Japan and Korea have particularly similar social stratification system. A synthetic occupational classification with a distinction of company size is effective in analyzing social stratification in these societies. Taiwan has rather unique social stratification system. More attention should be paid to the differences in occupation rather than company size.