Why was a job for life a big thing in Japan?

And why is it fading away?

“Shrewd observers of the Japanese system had long ago noted that lifetime employment offered companies the opportunity to employ scads of young people at little expense. Starting wages were fixed below true value across whole industries, and workers endured them in return for security and promised raises…

By 1993, with the percentage of workers fifty-five or older rising to 13 percent, that benefit had turned into a costly burden. Nearly 40 percent of Japan’s workforce had fifteen years or more of seniority. This posed a grave problem: Under seniority-based wages, only a tiny fraction of those older workers could be expected to produce more than the earned.”

About Face pg 153

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: