Thesis statement
The Japanese social situation have changed in recent years, therefore, traditional Japanese employment system must change and adjust to the current social situation as soon as possible.
Ⅰ. Introduction
A. General idea of Japanese employment system
B. Thesis statement
Ⅱ. Explain 3 main points of the Japanese employment system
A. Permanent employment
B. Seniority-based wage system
C. Enterprise-based union
Ⅲ. Current socio-economic situation in Japan and related problems
A. Inherent Problems
1. Overwork
2. Difficult for non-new graduates to get a job
B. Recent socio-economic situation and current problems
3. Discrimination for female worker
4. Aging society and lack of labor force in the near future
Ⅳ. Possible solutions
Ⅴ. Conclusion
Hanako Shimazaki (ID: 101379)
Prof. James
Theme Writing
February 21, 2008
The Japanese social situation have changed in recent years, therefore, traditional Japanese employment system must change and adjust to the current social situation as soon as possible.
Ⅰ. Introduction
A. General idea of Japanese employment system
B. Thesis statement
Ⅱ. Explain 3 main points of the Japanese employment system
A. Permanent employment
B. Seniority-based wage system
C. Enterprise-based union
Ⅲ. Current socio-economic situation in Japan and related problems
A. Inherent Problems
1. Overwork
2. Difficult for non-new graduates to get a job
B. Recent socio-economic situation and current problems
3. Discrimination for female worker
4. Aging society and lack of labor force in the near future
Ⅳ. Possible solutions
Ⅴ. Conclusion
Hanako Shimazaki (ID: 101379)
Prof. James
Theme Writing
February 21, 2008
Current changes in the Japanese employment system
Ⅰ. Introduction
The Japanese employment system is strictly peculiar to Japan and different from employment systems in other countries. For Japanese people it is usual to work in one enterprise permanently and to increase their wage in proportion to their age. The Japanese employment system was developed in rapid economic growth period. Although the traditional Japanese employment system was rational in the rapid economic growth stage, there are many problems under the present Japanese social situation. Therefore, Japanese government and enterprises must adapt Japanese employment system to the new circumstance. After examining problems caused by Japanese employment system, this paper will provide possible solutions for these problems. The Japanese social situation have changed in recent years, therefore, traditional Japanese employment system must change and adjust to the current social situation as soon as possible.
Ⅱ. The Japanese employment system
A. Permanent employment
The permanent employment system has long been one of the three core employment practices in Japan. In general, permanent employment means that a person who joins a company immediately after graduation from school will work for the enterprise until the mandatory retirement age, during which time the worker has almost no fear of dismissal. Therefore, most Japanese workers carry on with their work until the mandatory retirement age. For, most enterprises, especially large Japanese enterprises, employ workers on the premise that permanent employment. It is because enterprises do so that the Japanese government controls enterprises by the law. It is the law that enterprise can not fire their worker without effort to avoid redundancies by taking measures such as cutting overtime, hiring freezes and so on. On-the-job training or firm-specific training is one of the constituents of Japanese permanent employment. Japanese companies emphasize the training and retraining of workers, and much of the training is specific to the enterprise. Most enterprises prefer to hire new graduates and train them within their organization. In addition, in enterprise there is job competition among workers. Due to the growth of firm-specific skills, the tenure-earnings profile of the workers becomes steeper, which results in longer attachment between the workers and the enterprise.
B. Seniority-based wage system
Permanent employment and Japanese enterprise pay system are closely linked, and it would be easy to understand to consider them together. This section discuss about Japanese traditional unique seniority-based wage system. In general, the seniority-based wage system is a system in which a worker’s wages rise in proportion to the length of worker’s employment and age. There are three sets of explanations for why wage increases with job tenure. The first is that workers are paid wages equal to their marginal product, and their wages rise because their productivity increase. The second explanation is given by the firm-specific human capital hypothesis. The third explanation is given by the incentive hypothesis. Companies give workers an incentive to work harder by delaying their compensations until later in the work cycle. For, young workers can not get wage fit their productivity. Through this pay system, enterprises enable keep to hold their workers until worker mandatory retirement age (Matsuzuka). This wage system can not be practiced without mandatory retirement.
C. Enterprise-based union
Finally, it is enterprise-based unions. Japanese labor unions are based in the enterprise. In America and EU, union is organized occupation-based. Under the occupation-based union, it can be practiced that wage is classified by occupation because there is no firm-specific training as mentioned above. Moreover, these countries do not have system such as permanent employment because it is not need to keep holding worker permanently. In other words, workers reap the wage of their work. In such countries, only workers ability decides their wage. The reason why this wage system is possible is that there is no firm-specific training and there is circumstance worker can change their work easily. On the other hand, in Japan, unions are divided by enterprise therefore closed enterprises practice firm-specific training differently(Rebick 15). As mentioned in the explanation of permanent employment, firm-specific training enables to practice the permanent employment. In brief, enterprise-based union effect to other systems.
Actually, three systems connect tightly and these are called Japanese employment system.
Ⅲ. Current socio-economic situation in Japan and related problems
A. Inherent Problems
1. Overwork
As mentioned in explanation of permanent employment system, enterprises can rarely fire employee and have to try to not fire their employees by some means. As one of means is cutting overtime, enterprises use overtime for one of tools to avoid redundancies. In other words, when enterprise is quite good condition, they would increase worker’s overtime and when enterprise is bad condition, they would decrease worker’s overtime instead of dismissal. Although it seems that this overtime as means is satisfactory to employees, it is misunderstanding. Actually overtime problem is one of the serious problems in the Japanese workplace. The Labor Force Survey reported that the average Japanese in non-agricultural industries worked 46.1 hours per week in 1990 and 42.4 hours in 2001(The Labor Force Survey). Widespread working of overtime is partly due to the weakness of the labor union, but is also a direct consequence of the competitive tournaments that are used to determine promotions in Japan. Although overtime is necessary system to keep permanent employment, there is a situation that some people die due to work too much. Karoshi, death from overwork, is one of Japan’s serious social problems related to overtime. Furthermore, it is not good for children to not spend time with their parents. This overtime problem should be improved soon.
2. Difficult for non-new graduates to get a job
According to study of OECD, the length of employment for Japanese male workers is longer than in other developed countries (OECD). Japanese worker rare left their first employer because although it is a well-organized entry market for new graduates to obtain jobs, for non new-graduates it is quite difficult to obtain new job. The reason why Japanese enterprises tend to not accept non-new graduates is that as mentioned above in permanent employment it is quite important to do firm-specific training in Japanese enterprises. Enterprises believe that by going through various trainings, employees become efficient worker. Therefore, it is convenient for enterprises to employ young workers in one time. Thus, this system is disadvantageous for non-new graduates. In fact, people who lived from 1993 to 2004, generally these days is called shushoku hyougaki, when they were new-graduates, confronted difficult condition to get job. This generation continues to experience the same problem in now days because of limited of employment. Under the permanent employment, most workers tend to not quit their job. It means it is difficult to shift their job. In Japan, there is guarantee on permanent employment for existent workers. However, there is no such guarantee for non-new graduates and non-existent workers. In the near future, a widening gap between rich and poor is more serious problems than ever. Government and enterprises must consider to generation who confronted shuushoku hyougaki and should act to solve this problem. To solve this problem, all three employment systems should be changed.
B. Recent socio-economic situation and current problems
Above two problems have existed even in old days. However, there are several problems connect to current social situation. Between 1950 and now, Japanese social situation extremely changed. There are two current social situation and these cause following problems.
3. Discrimination for female worker
Recently, the social status of women rises gradually. Female worker have increased in number in labor market. According to The center for the advancement of working women, although female worker was 1703(ten thousand persons) in 1955, it increased to 2725(same unit) by 2006(The center for the advancement of working women). This phenomenon is good for Japanese economy, and for female. Although female worker increase, many female workers tend to quit her job before forced retirement because of marriage and pregnancy and child care and so on. In fact, the reason of female worker retirement is that marriage is 33%, pregnancy and child care is 30 %( Ministry of health). As seeing this data, it is clear that it is unpleasant working environment for female worker to keep her job. This problem relate to Permanent employment. As mentioned above, on the job training is important for promoting to worker’s rank, VMP (the value of marginal productivity) and wage. In generally, personnel departure tends not to let female-worker to hold important position because the departure has stereotype that female-worker would quit job soon. For personnel departure man is more important as labor force than women because most men work one enterprise permanently. As result, ex-female worker tend not to return labor market. Why only female should quite job for household? In the past, most of Japanese people believe that women have to do housework and support her husband. However times have changed and people must get rid of their gender stereotype.
4. Aging society and lack of labor force in the near future
In addition, there is another problem. Declining birth rate and aging is one of serious problems Japan have. Dannkaino sedai(literally, generation of the clump), born between 1947 and 1950, are rapidly approaching their retirement age. They quit job gradually and then Japanese worker demand will decrease sharply. Due to a significant extension of the average longevity and to a drop in the birth rate, it is estimated that, in 21st century, one-fifth of Japanese workers will be over sixty years of age (Japan Ministry of Labor). To extend mandatory retirement, seniority-based wage system must be abolished. Next section, possible solution is discussed including solution of this problem. Seniority-based wage system is closely related to this problem.
Ⅳ. Possible solutions
This section supposes possible solution of above problems. It is government and company responsibility to create convenient environment for all employee. Therefore they must solve above problems by changing traditional Japanese employment system.
1. Solution of Overtime
As solution of overtime, permanent employment should be abolished and introduce lay-off system. As mentioned above, overtime is used as one of method to avoid redundancies. If permanent employment is abolished, worker does not have to do irregular work. In short, worker faces fire instead of overtime. Dismissal from enterprises may be thought as the worst occurrence. However, through enterprises make lay-off system, this worry can be relieved. Here is logic of lay of system, when enterprise must fire worker, enterprise have to give money and something to ex-worker in compensation for lay-off. On the lay-off system, worker can look for new job while worker gets money from ex-enterprises. Although worker always worry about dismissal from enterprise, this system would be possible to liberate worker from overtime. In addition, labor union should make comfortable workplace. Most enterprises just think about their profit, therefore, labor union should control enterprise for worker. In Japan, labor union is based on each enterprise so enterprise tends to make wall against other enterprise. Each enterprise does not try to interfere. If enterprise-based union shifts to occupation-based union, each enterprise can not pursue only own enterprises profit. Through each enterprise interfere other enterprises, workplace will be comfortable. As mentioned in explanation of overtime problem, death from overtime is serious problem. This problem must be solved immediately by abolishing permanent employment and shifting to occupation-based union.
2. Solution of Non-new graduate’s problem
Here is solution of discrimination of non-new graduates. All three Japanese employment systems are obstacle to make comfortable circumstance for non-new graduates. Firm-specific training is block worker to shift their job easily. Enterprise should let worker acquire general skill. By general-training not firm-specific training, worker and even non-existing worker can get other job easily. Government should make institution like non-new graduates and unemployed can train general skill such as skill in computer and skill in communication and so on. Furthermore, enterprise should abolish the traditional wage system and practice wage system based on worker’s ability. Through accepting pay system based on workers ability, enterprises try to employ efficient workers. It is good not only for enterprises but also for non-new graduate and unemployed that really efficient worker is employed. In addition, each enterprise labor union should communicate other enterprise labor union. In short, enterprise-based union should shift to occupation-based labor union. By individual enterprise connect tightly, worker will be able to shift enterprise among the common labor union. As stated above, it is difficult to solve this problem. However, this problem should be solved as soon as possible.
3. Solution of Discrimination for women
Unlike men who devote themselves primarily to their jobs, women are, in addition their job, engaged in a variety of activities at home, family and community concerned, and are expected to work in coordination with various aspects of such activities. The working mode of permanent employment was developed based on the assumptions that male workers would mainly perform work with extensive support at home by their mother or wife. As a result, women were forced to quit their job. In fact, many women quit their job for engaging activity at home. By changing working style, for example, length of working time and location of workplace, female worker will be able to keep their work permanently. As mentioned above, permanent employment can not be practiced without female. Women have yet to achieve full equality in the workplace. On the recent Japanese social situation, such permanent employment is inappropriate practice. Therefore, labor union should be female worker-friendly. For example, it is important to improve day-care for children. As mentioned in above section, 30%female worker quit their job for pregnancy and child care. There is no enough nursery school in Japan. Therefore, labor union should make nursery school within enterprise. It is helpful for female worker because they can meet their child whenever they want to do. By labor union be female-friendly, female worker can keep to work.
4. Solution for lack of labor force
It is solution of wage problem stemmed from the wage system based on seniority and lack of workers under declining birth rate and aging society that enterprises abolish permanent employment and seniority-based wage system. The delayed compensation model of Lazear (1979) rather explains why mandatory retirement is necessary. It argues that VMP (the value of marginal productivity) of a worker is greater than worker’s wage when the worker is young. As the worker stays in the enterprise longer, worker’s wage grows faster, eventually exceeding worker’s VMP. Lazear notes that “this delayed compensation contract with a steeper age-earnings profile gives workers an incentive to stay longer since they would not want to quit before the receiving the wage premium”(Matsuzuka 26). In other words, by abolishing permanent employment, this wage system is not needed. Solution is that permanent employment and wage system based on seniority is abolished and then extending retirement age and converting traditional pay system into piece rate. Professor Yashiro said that it is need to provide employment opportunity for the senior (Yashiro 217). Recent 60 ages is fine through advances in medical techniques, therefore mandatory retirement should extend and the circumstance should be made that even more 60 can work. However, if retirement age can be extended, a new problem occurs. The problem results from seniority-based wage system. In short, it is impossible to practice this extending-retirement age scheme without abolishing seniority-based wage system. Enterprises will fail if they practice both systems, extending mandatory retirement and traditional wage system. Seniority-based wage system can work with force retirement. Therefore, for extending force retirement age, permanent employment system and wage system based on seniority must be abolished.
Ⅴ. Conclusion
In conclusion, although traditional Japanese employment system has practiced for long time, it is time to change the system now. Japan will collapse unless enterprises and government do something. There are many serious problems in Japan; death from overwork, discrimination of non-new graduates, non female-friendly and lack of labor force. However, these problems can be solved by changing traditional Japanese employment system. Now, it is time to change Japanese employment system and adapt it to the new circumstance.
(2658words)
Japan Ministry of Labor, Rodo Hakusho, Japan: Research institute of
labour, 1997.
Matsuzuka, Yukari. Changes in the permanent employment system in
Japan, N.Y.: Routledge, 2002.(p23-29)
Ministry of health, labor and welfare. Figure 9. 27 Jan.
http://www.mhlw.go.jp/toukei/itiran/roudou/koyou/doukou/05-2/gaiyou.html
OECD. Employment Outlook(July), Paris: OECD, 1993.
Rebick, Marcus. the Japanese employment system adapting to a new
economic environment, NY: Oxford University press, 2005.
Takashi, Akira et al. Japanese employment practices, Japan:
The Japan institute of Labour, 1999.
The center for the advancement of working women. 27 Jan.
http://www.stat.go.jp/data/roudou/longtime/zuhyou/lt01-01.xls
The Labor Force Survey. Annual Report of the Labor Force Survey.
Tokyo: Nihon Tokei Kyokai.
Yashiro, Naohiro. nihonnteki koyoukankou no keizaigaku, Japan:
nihon keizai keizaisha, 1997.
The Japanese employment system is strictly peculiar to Japan and different from employment systems in other countries. For Japanese people it is usual to work in one enterprise permanently and to increase their wage in proportion to their age. The Japanese employment system was developed in rapid economic growth period. Although the traditional Japanese employment system was rational in the rapid economic growth stage, there are many problems under the present Japanese social situation. Therefore, Japanese government and enterprises must adapt Japanese employment system to the new circumstance. After examining problems caused by Japanese employment system, this paper will provide possible solutions for these problems. The Japanese social situation have changed in recent years, therefore, traditional Japanese employment system must change and adjust to the current social situation as soon as possible.
Ⅱ. The Japanese employment system
A. Permanent employment
The permanent employment system has long been one of the three core employment practices in Japan. In general, permanent employment means that a person who joins a company immediately after graduation from school will work for the enterprise until the mandatory retirement age, during which time the worker has almost no fear of dismissal. Therefore, most Japanese workers carry on with their work until the mandatory retirement age. For, most enterprises, especially large Japanese enterprises, employ workers on the premise that permanent employment. It is because enterprises do so that the Japanese government controls enterprises by the law. It is the law that enterprise can not fire their worker without effort to avoid redundancies by taking measures such as cutting overtime, hiring freezes and so on. On-the-job training or firm-specific training is one of the constituents of Japanese permanent employment. Japanese companies emphasize the training and retraining of workers, and much of the training is specific to the enterprise. Most enterprises prefer to hire new graduates and train them within their organization. In addition, in enterprise there is job competition among workers. Due to the growth of firm-specific skills, the tenure-earnings profile of the workers becomes steeper, which results in longer attachment between the workers and the enterprise.
B. Seniority-based wage system
Permanent employment and Japanese enterprise pay system are closely linked, and it would be easy to understand to consider them together. This section discuss about Japanese traditional unique seniority-based wage system. In general, the seniority-based wage system is a system in which a worker’s wages rise in proportion to the length of worker’s employment and age. There are three sets of explanations for why wage increases with job tenure. The first is that workers are paid wages equal to their marginal product, and their wages rise because their productivity increase. The second explanation is given by the firm-specific human capital hypothesis. The third explanation is given by the incentive hypothesis. Companies give workers an incentive to work harder by delaying their compensations until later in the work cycle. For, young workers can not get wage fit their productivity. Through this pay system, enterprises enable keep to hold their workers until worker mandatory retirement age (Matsuzuka). This wage system can not be practiced without mandatory retirement.
C. Enterprise-based union
Finally, it is enterprise-based unions. Japanese labor unions are based in the enterprise. In America and EU, union is organized occupation-based. Under the occupation-based union, it can be practiced that wage is classified by occupation because there is no firm-specific training as mentioned above. Moreover, these countries do not have system such as permanent employment because it is not need to keep holding worker permanently. In other words, workers reap the wage of their work. In such countries, only workers ability decides their wage. The reason why this wage system is possible is that there is no firm-specific training and there is circumstance worker can change their work easily. On the other hand, in Japan, unions are divided by enterprise therefore closed enterprises practice firm-specific training differently(Rebick 15). As mentioned in the explanation of permanent employment, firm-specific training enables to practice the permanent employment. In brief, enterprise-based union effect to other systems.
Actually, three systems connect tightly and these are called Japanese employment system.
Ⅲ. Current socio-economic situation in Japan and related problems
A. Inherent Problems
1. Overwork
As mentioned in explanation of permanent employment system, enterprises can rarely fire employee and have to try to not fire their employees by some means. As one of means is cutting overtime, enterprises use overtime for one of tools to avoid redundancies. In other words, when enterprise is quite good condition, they would increase worker’s overtime and when enterprise is bad condition, they would decrease worker’s overtime instead of dismissal. Although it seems that this overtime as means is satisfactory to employees, it is misunderstanding. Actually overtime problem is one of the serious problems in the Japanese workplace. The Labor Force Survey reported that the average Japanese in non-agricultural industries worked 46.1 hours per week in 1990 and 42.4 hours in 2001(The Labor Force Survey). Widespread working of overtime is partly due to the weakness of the labor union, but is also a direct consequence of the competitive tournaments that are used to determine promotions in Japan. Although overtime is necessary system to keep permanent employment, there is a situation that some people die due to work too much. Karoshi, death from overwork, is one of Japan’s serious social problems related to overtime. Furthermore, it is not good for children to not spend time with their parents. This overtime problem should be improved soon.
2. Difficult for non-new graduates to get a job
According to study of OECD, the length of employment for Japanese male workers is longer than in other developed countries (OECD). Japanese worker rare left their first employer because although it is a well-organized entry market for new graduates to obtain jobs, for non new-graduates it is quite difficult to obtain new job. The reason why Japanese enterprises tend to not accept non-new graduates is that as mentioned above in permanent employment it is quite important to do firm-specific training in Japanese enterprises. Enterprises believe that by going through various trainings, employees become efficient worker. Therefore, it is convenient for enterprises to employ young workers in one time. Thus, this system is disadvantageous for non-new graduates. In fact, people who lived from 1993 to 2004, generally these days is called shushoku hyougaki, when they were new-graduates, confronted difficult condition to get job. This generation continues to experience the same problem in now days because of limited of employment. Under the permanent employment, most workers tend to not quit their job. It means it is difficult to shift their job. In Japan, there is guarantee on permanent employment for existent workers. However, there is no such guarantee for non-new graduates and non-existent workers. In the near future, a widening gap between rich and poor is more serious problems than ever. Government and enterprises must consider to generation who confronted shuushoku hyougaki and should act to solve this problem. To solve this problem, all three employment systems should be changed.
B. Recent socio-economic situation and current problems
Above two problems have existed even in old days. However, there are several problems connect to current social situation. Between 1950 and now, Japanese social situation extremely changed. There are two current social situation and these cause following problems.
3. Discrimination for female worker
Recently, the social status of women rises gradually. Female worker have increased in number in labor market. According to The center for the advancement of working women, although female worker was 1703(ten thousand persons) in 1955, it increased to 2725(same unit) by 2006(The center for the advancement of working women). This phenomenon is good for Japanese economy, and for female. Although female worker increase, many female workers tend to quit her job before forced retirement because of marriage and pregnancy and child care and so on. In fact, the reason of female worker retirement is that marriage is 33%, pregnancy and child care is 30 %( Ministry of health). As seeing this data, it is clear that it is unpleasant working environment for female worker to keep her job. This problem relate to Permanent employment. As mentioned above, on the job training is important for promoting to worker’s rank, VMP (the value of marginal productivity) and wage. In generally, personnel departure tends not to let female-worker to hold important position because the departure has stereotype that female-worker would quit job soon. For personnel departure man is more important as labor force than women because most men work one enterprise permanently. As result, ex-female worker tend not to return labor market. Why only female should quite job for household? In the past, most of Japanese people believe that women have to do housework and support her husband. However times have changed and people must get rid of their gender stereotype.
4. Aging society and lack of labor force in the near future
In addition, there is another problem. Declining birth rate and aging is one of serious problems Japan have. Dannkaino sedai(literally, generation of the clump), born between 1947 and 1950, are rapidly approaching their retirement age. They quit job gradually and then Japanese worker demand will decrease sharply. Due to a significant extension of the average longevity and to a drop in the birth rate, it is estimated that, in 21st century, one-fifth of Japanese workers will be over sixty years of age (Japan Ministry of Labor). To extend mandatory retirement, seniority-based wage system must be abolished. Next section, possible solution is discussed including solution of this problem. Seniority-based wage system is closely related to this problem.
Ⅳ. Possible solutions
This section supposes possible solution of above problems. It is government and company responsibility to create convenient environment for all employee. Therefore they must solve above problems by changing traditional Japanese employment system.
1. Solution of Overtime
As solution of overtime, permanent employment should be abolished and introduce lay-off system. As mentioned above, overtime is used as one of method to avoid redundancies. If permanent employment is abolished, worker does not have to do irregular work. In short, worker faces fire instead of overtime. Dismissal from enterprises may be thought as the worst occurrence. However, through enterprises make lay-off system, this worry can be relieved. Here is logic of lay of system, when enterprise must fire worker, enterprise have to give money and something to ex-worker in compensation for lay-off. On the lay-off system, worker can look for new job while worker gets money from ex-enterprises. Although worker always worry about dismissal from enterprise, this system would be possible to liberate worker from overtime. In addition, labor union should make comfortable workplace. Most enterprises just think about their profit, therefore, labor union should control enterprise for worker. In Japan, labor union is based on each enterprise so enterprise tends to make wall against other enterprise. Each enterprise does not try to interfere. If enterprise-based union shifts to occupation-based union, each enterprise can not pursue only own enterprises profit. Through each enterprise interfere other enterprises, workplace will be comfortable. As mentioned in explanation of overtime problem, death from overtime is serious problem. This problem must be solved immediately by abolishing permanent employment and shifting to occupation-based union.
2. Solution of Non-new graduate’s problem
Here is solution of discrimination of non-new graduates. All three Japanese employment systems are obstacle to make comfortable circumstance for non-new graduates. Firm-specific training is block worker to shift their job easily. Enterprise should let worker acquire general skill. By general-training not firm-specific training, worker and even non-existing worker can get other job easily. Government should make institution like non-new graduates and unemployed can train general skill such as skill in computer and skill in communication and so on. Furthermore, enterprise should abolish the traditional wage system and practice wage system based on worker’s ability. Through accepting pay system based on workers ability, enterprises try to employ efficient workers. It is good not only for enterprises but also for non-new graduate and unemployed that really efficient worker is employed. In addition, each enterprise labor union should communicate other enterprise labor union. In short, enterprise-based union should shift to occupation-based labor union. By individual enterprise connect tightly, worker will be able to shift enterprise among the common labor union. As stated above, it is difficult to solve this problem. However, this problem should be solved as soon as possible.
3. Solution of Discrimination for women
Unlike men who devote themselves primarily to their jobs, women are, in addition their job, engaged in a variety of activities at home, family and community concerned, and are expected to work in coordination with various aspects of such activities. The working mode of permanent employment was developed based on the assumptions that male workers would mainly perform work with extensive support at home by their mother or wife. As a result, women were forced to quit their job. In fact, many women quit their job for engaging activity at home. By changing working style, for example, length of working time and location of workplace, female worker will be able to keep their work permanently. As mentioned above, permanent employment can not be practiced without female. Women have yet to achieve full equality in the workplace. On the recent Japanese social situation, such permanent employment is inappropriate practice. Therefore, labor union should be female worker-friendly. For example, it is important to improve day-care for children. As mentioned in above section, 30%female worker quit their job for pregnancy and child care. There is no enough nursery school in Japan. Therefore, labor union should make nursery school within enterprise. It is helpful for female worker because they can meet their child whenever they want to do. By labor union be female-friendly, female worker can keep to work.
4. Solution for lack of labor force
It is solution of wage problem stemmed from the wage system based on seniority and lack of workers under declining birth rate and aging society that enterprises abolish permanent employment and seniority-based wage system. The delayed compensation model of Lazear (1979) rather explains why mandatory retirement is necessary. It argues that VMP (the value of marginal productivity) of a worker is greater than worker’s wage when the worker is young. As the worker stays in the enterprise longer, worker’s wage grows faster, eventually exceeding worker’s VMP. Lazear notes that “this delayed compensation contract with a steeper age-earnings profile gives workers an incentive to stay longer since they would not want to quit before the receiving the wage premium”(Matsuzuka 26). In other words, by abolishing permanent employment, this wage system is not needed. Solution is that permanent employment and wage system based on seniority is abolished and then extending retirement age and converting traditional pay system into piece rate. Professor Yashiro said that it is need to provide employment opportunity for the senior (Yashiro 217). Recent 60 ages is fine through advances in medical techniques, therefore mandatory retirement should extend and the circumstance should be made that even more 60 can work. However, if retirement age can be extended, a new problem occurs. The problem results from seniority-based wage system. In short, it is impossible to practice this extending-retirement age scheme without abolishing seniority-based wage system. Enterprises will fail if they practice both systems, extending mandatory retirement and traditional wage system. Seniority-based wage system can work with force retirement. Therefore, for extending force retirement age, permanent employment system and wage system based on seniority must be abolished.
Ⅴ. Conclusion
In conclusion, although traditional Japanese employment system has practiced for long time, it is time to change the system now. Japan will collapse unless enterprises and government do something. There are many serious problems in Japan; death from overwork, discrimination of non-new graduates, non female-friendly and lack of labor force. However, these problems can be solved by changing traditional Japanese employment system. Now, it is time to change Japanese employment system and adapt it to the new circumstance.
(2658words)
Works Cited
Japan Ministry of Labor, Rodo Hakusho, Japan: Research institute of
labour, 1997.
Matsuzuka, Yukari. Changes in the permanent employment system in
Japan, N.Y.: Routledge, 2002.(p23-29)
Ministry of health, labor and welfare. Figure 9. 27 Jan.
http://www.mhlw.go.jp/toukei/itiran/roudou/koyou/doukou/05-2/gaiyou.html
OECD. Employment Outlook(July), Paris: OECD, 1993.
Rebick, Marcus. the Japanese employment system adapting to a new
economic environment, NY: Oxford University press, 2005.
Takashi, Akira et al. Japanese employment practices, Japan:
The Japan institute of Labour, 1999.
The center for the advancement of working women. 27 Jan.
http://www.stat.go.jp/data/roudou/longtime/zuhyou/lt01-01.xls
The Labor Force Survey. Annual Report of the Labor Force Survey.
Tokyo: Nihon Tokei Kyokai.
Yashiro, Naohiro. nihonnteki koyoukankou no keizaigaku, Japan:
nihon keizai keizaisha, 1997.
