Internal labor markets in Japan

Japanese labour market practices have attracted considerable attention in the West for two reasons. Firstly, innovative human resource management (HRM) is responsible for the development of competitive industrial sectors. Secondly, inner flexibility of the labour market has produced low unemployment and wage flexibility. This study, originally published in 2000, provides a thorough investigation of the distinctive features of Japanese internal labour markets (ILM) and occupational labour markets (OLM), closely analyses important changes in ILM and considers future developments. It combines a mixture both of descriptive and of theoretical and econometric work and builds on the authors' wel- known previous research in this area. Also contains a detailed case study and the econometric analysis of HRM policies used by a large Japanese firm. Although the focus is on Japanese ILM, international comparisons are made throughout, mainly with reference to Europe and the United States.

pt. I. Features of Japan's internal labor markets -- 1. Internal labor markets in search equilibrium -- 2. Demand and supply of skills in a corporate hierarchy -- 3. Measuring occupational and internal labor markets -- 4. Earnings and seniority in internal labor markets -- 5. Recruitment and promotion in Japanese firms -- 6. Product market competition and internal labor markets -- pt. II. Recent changes in wage and employment structures -- 7. Institutional changes in Japanese internal labor market -- 8. Changes in the employment and wage structure of Japanese firms, 1976-1996 -- 9. Changes in Japanese earnings profiles -- 10. The impact of growth and business cycles on Japanese corporate hierarchies.