Japanese management practices: Their implication on productivity, employment and income distribution

It is suggested that economists should attach more importance to the economic role of social system and employees asset ownership. It is shown that the seniority wage profile together with the so-called lifetime employment practice in Japan has an employment promoting effect similar to that of M.L....

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Bibliographic Details
Published in:International journal of production economics 1997-10, Vol.52 (1), p.105-115
Main Author: Maruo, Naomi
Format: Article
Language:English
Subjects:
Economic theory
Employment
Income distribution
Japanese management
Management styles
Productivity
Studies
Wages & salaries
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Summary:It is suggested that economists should attach more importance to the economic role of social system and employees asset ownership. It is shown that the seniority wage profile together with the so-called lifetime employment practice in Japan has an employment promoting effect similar to that of M.L. Weitzman's share economy. It is interesting to know that under either system the wages of new employees remain less than the marginal labor productivity value. It is shown that the combination of wage differentials by age and by firm size works as an effective incentive system. Future pie hypotheses and the optimum share of wages are suggested.
ISSN:0925-5273
1873-7579
DOI:10.1016/S0925-5273(96)00065-5