EconPapers    
Economics at your fingertips  
 

The Theory of Contracts and Labor Practices in Japan and the United States

Yoshitsugu Kanemoto and W. Bentley Macleod

Working Paper from Economics Department, Queen's University

Abstract: Labor management practices in Japan are quite different from those in the United States. Based on recent developments in contract theory, we develop a conceptual framework to understand why the differences have been maintained for a long period time. Our basic message is that the American and Japanese systems are two different equilibria. The distinguishing feature is the extent to which exit is used as a method of contract enforcement. In the U.S., there is a greater tendency for exit because active markets exist for senior workers. In contrast, there is virtually no market for mid career workers in Japan.

Pages: 21 pages
Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (8)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:708

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().

 
Page updated 2025-03-19
Handle: RePEc:qed:wpaper:708