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A comparative study of Japanese plants operating in the U.S. and American plants: Recruitment, job training, wage structure and job separation

Yoshio Higuchi

Title:
A comparative study of Japanese plants operating in the U.S. and American plants: Recruitment, job training, wage structure and job separation
Author(s):
Higuchi, Yoshio
Date:
Type:
Working papers
Department:
Center on Japanese Economy and Business
Permanent URL:
Series:
Center on Japanese Economy and Business Working Papers
Part Number:
13
Publisher:
Center on Japanese Economy and Business, Graduate School of Business, Columbia University
Publisher Location:
New York
Abstract:
This study compares recruitment, job training, wage structure, and labor mobility of Japanese plants operating in the U.S. (JPUS plants) with local American owned plants. In the Japanese labor market, the job separation rate is remarkably lower and the wage-tenure profile is steeper than in the United States (see section II). This observation has been interpreted mainly through two theories: the view which stresses the cultural and traditional value of company loyalty, and the perspective which places a strong emphasis on the role of job training. However, studies relying only on international comparisons conclude that it is very difficult to distinguish between cultural and economic related factors. By looking at the JPUS plants (which employ American workers), this analysis strives to separate cultural influences from the influences of technology and production systems. This paper statistically examines the following: (1) whether there are differences in modes of recruitment and job training between the JPUS plants and other American plants, and (2) if so, how these differences influence individual wage growth and job separation rate.
Subject(s):
Economics, Commerce-Business
Item views:
186
Metadata:
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