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The deregulation of labor dispatch in Japan was intended to promote a flexible labor market but in fact has led dispatched workers to unstable employment and inferior working conditions. From the research conducted in this paper, the result shows that the deregulation o f labor dispatch makes dispatching enterprises a booming market, which in turn puts more pressure on dispatched workers to survive in the fierce competition among dispatching enterprises. The reasons are as follows: firstly, in order to meet the demand s for short-term labor dispatch contracts, dispatching enterprises make a fixed-term contract with dispatched workers, which has a significant negative impact on stable employment: secondly, regardless of the increase or decrease in dispatch expenditure, the decision-making role that dispatching enterprises play in dispatched workers' service fee and salary has a significant negative effect on steady salary increase. The findings of this paper can be used as a reference as well as introspection for the development of labor dispatch social policy in both Taiwan and Japan.
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