Atypical Workers and the Problems of Social Security System

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The structure of labor market has been diversified in technology-driven and globally competitive economy. A noted change in Japan along the diversification is the increasing number of atypical workers such as part-time workers, temporary workers, and independent contractors. They are indispensable to run modern business and make industries more competitive in the world market.There are a number of reasons for the indispensability of atypical workers. But whatever the reasons may be, the change in the labor market has posed two serious problems for the wage workers. One is that they are employed under unduly low wages and benefits. The other is that many of them fall out of and become unprotected by the social security system.In this study, we analyze the firm's behavior toward the nonstandard workers, their household economy, and how social security policies work for them. We pay a special attention to the unemployment insurance, pension, child care and family care leave and argue some changes to be made for the social security so that it covers all sorts of workers.