Japanese labour market practices have attracted considerable attention in the West for two reasons. Firstly, innovative human resource management (HRM) is responsible for the development of competitive industrial sectors. Secondly, inner flexibility of the labour market has produced low unemployment and wage flexibility. This study provides a thorough investigation of the distinctive features of Japanese internal labour markets (ILM) and occupational labour markets (OLM), closely analyses important changes in ILM and considers future developments. It combines a mixture both of descriptive and of theoretical and econometric work and builds on the authors' well known previous research in this area. Also contains a detailed case study and the econometric analysis of HRM policies used by a large Japanese firm. Although the focus is on Japanese ILM, international comparisons are made throughout, mainly with reference to Europe and the United States.
"this, book is clearly written and well organized, and accessible to both economists and noneconomists with a basic acquaintance with the theoretical and methodological tools of economic analysis...the book offers a comprehensive analysis of practices related to internal labor markets in large Japanese firms, including recruitment, trainig, promotion, wages and the link between product markets and employment practices...the book offer a refinement of existing research rather than radically new ideas and insights." Journal of Japanese Studies