It’s Who You Work With: Effects of Workplace Shares of Nonstandard Employees and Women in Japan

Previous research on workplace composition has not addressed how the share of nonstandard employees affects individual workers’ opportunities and well-being. Moreover, existing studies generally assume that the effect of a group’s numerical representation is mediated through the group’s relative power and status within establishments. This study asks whether workplace composition matters when the size of each social group has little impact on its relative status. Specifically, I examine the economic and psychological consequences of the proportions of nonstandard employees and women in Japanese workplaces, where both groups are typically secondary workers who lack power regardless of their relative size. The results indicate that working in establishments with modest proportions of nonstandard employees enhances individuals’ wages and likelihood of promotion, but working in those with higher proportions is detrimental. Conversely, the greater the share of nonstandard employees in a workplace, the more likely all workers are to suffer psychologically. Workplace gender composition is also linked to Japanese workers’ reported chances of promotion and life satisfaction, but it is relevant to fewer worker outcomes than employment-status composition. This analysis underscores the need to consider workplace demography, even if the power and status gaps between different social groups vary little with each group’s share within establishments. In addition, the findings suggest that the global trend of increasing nonstandard work arrangements has a more extensive impact on disparities among workers than prior research implies.