Wage Determination in Japanese Manufacturing: A Review of Recent Literature

Hong W. Tan

The Economic Record, 1982, vol. 58, issue 1, 46-60

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.

Date: 1982
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https://doi.org/10.1111/j.1475-4932.1982.tb00348.x

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