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Wage Determination in Japanese Manufacturing: A Review of Recent Literature

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  • HONG W. TAN

Abstract

This paper surveys the Japanese literature on wage determination, highlighting the debate between institutional and human capital explanations of inter‐firm wage differentials. Both approaches predict (and find) that years of tenure in the current firm are more highly rewarded than outside experience, but do not explain adequately the systematic differences in this valuation of experience across industry, firm size and occupation. An alternative hypothesis linking technical change to skills and wage differentials is reviewed and shown to be supported empirically.

Suggested Citation

  • Hong W. Tan, 1982. "Wage Determination in Japanese Manufacturing: A Review of Recent Literature," The Economic Record, The Economic Society of Australia, vol. 58(1), pages 46-60, March.
    • Handle: RePEc:bla:ecorec:v:58:y:1982:i:1:p:46-60
    DOI: 10.1111/j.1475-4932.1982.tb00348.x
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    References listed on IDEAS

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    3. Stoikov, Vladimir, 1973. "The Structure of Earnings in Japanese Manufacturing Industries: A Human-Capital Approach," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 340-355, Part I, M.
    4. Samuel Hollander, 1965. "The Sources of Increased Efficiency: A Study of DuPont Rayon Plants," MIT Press Books, The MIT Press, edition 1, volume 1, number 026258235x, December.
    5. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    6. Arthur M. Okun, 1973. "Upward Mobility in a High-Pressure Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(1), pages 207-262.
    7. Tachibanaki, Toshiaki, 1975. "Wage Determinations in Japanese Manufacturing Industries-Structural Change and Wage Differentials," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(3), pages 562-586, October.
    8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    9. Cain, Glen G, 1976. "The Challenge of Segmented Labor Market Theories to Orthodox Theory: A Survey," Journal of Economic Literature, American Economic Association, vol. 14(4), pages 1215-1257, December.
    10. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
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