Re/Integration into the Destination and Home Societies of Japanese Self-Initiated Expatriate Workers: A Longitudinal Data Approach

The number of Japanese nationals living abroad has been steadily increasing. This trend is due to many young Japanese nationals, known as self-initiated expatriates (SIEs), actively seeking career opportunities in overseas locations following the long-term economic downturn since the 1990s, particularly in East Asian global cities like Hong Kong, Singapore, and Shanghai. The careers of Japanese SIEs represent a case of expatriates from non-Western and high-income societies, which are relatively understudied in migration research.

While Japanese SIEs have been fulfilling the labour needs of Japanese and multinational companies in destination societies, previous studies have indicated that they encounter obstacles in advancing their careers, particularly in Japanese branch firms, due to entrenched Japanese employment practices. This phenomenon, known as the “rice-paper ceiling,” may hinder both local workers and Japanese SIEs from accessing better career prospects within Japanese organisations. Additionally, Japanese SIEs may face difficulties in obtaining better positions upon returning to Japan because their international experiences are not valued by Japanese domestic employers, who have maintained domestic-centred perceptions about valuable skills in the Japanese labour market.

In light of these issues, an investigation into the economic re/integration of Japanese SIE workers when working in destination societies and upon returning to Japan was conducted. The study, based on a three-wave panel survey of Japanese workers overseas from 2019 to 2021, revealed that while the SIE workers’ wages are lower than the assigned expatriates, they increased over time in their destination societies. Furthermore, upon returning to Japan, the growth rate of the SIE workers’ wages surpassed that of the assigned expatriates. Contrary to the marginalisation scenario, Japanese SIE workers seem to be economically integrated into their destinations and successfully reintegrated into Japan after their return.