Nonprofit/for-profit status and earning differentials in the Japanese at-home elderly care industry: Evidence from micro-level data on home helpers and staff nurses

Haruko Noguchi, Satoshi Shimizutani

Research output: Contribution to journalArticle

6 Citations (Scopus)


In April 2000, Japan embarked on a reform of its health care market. Along with the introduction of a long-term care insurance scheme, the government for the first time allowed for-profit operators to compete head-on with non-profit operators in the provision of at-home care services. Taking advantage of a unique and rich micro-level survey, this study is the first to examine wage differentials between the nonprofit and the for-profit sectors in Japan's nursing care industry, concentrating on home helpers and staff nurses. Controlling for nonrandom unobserved selection biases, our results show that a nonprofit wage premium exists. This finding supports the hypothesis that nonprofit providers operate under non-distributional constraints. J. Japanese Int. Economies 21 (1) (2007) 106-120.

Original languageEnglish
Pages (from-to)106-120
Number of pages15
JournalJournal of the Japanese and International Economies
Issue number1
Publication statusPublished - 2007 Mar
Externally publishedYes



  • Heckman's two-stage approach
  • Home helpers
  • Japanese long-term care insurance
  • Long-term care
  • Nonprofit wage premium
  • Nursing home
  • Quality of care
  • Staff nurses

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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