Promotion and Wage Determination in the Japanese Firms

Research Project

Project/Area Number	05301076
Research Category	Grant-in-Aid for Co-operative Research (A)
Allocation Type	Single-year Grants
Research Field	経済政策(含経済事情)
Research Institution	KYOTO UNIVERSITY
Principal Investigator	TACHIBANAKI Toshiaki Kyoto Institute of Economic Research, Professor, 経済研究所, 教授 (70112000)
Co-Investigator(Kenkyū-buntansha)	TERUYAMA Hiroshi Kyoto Institute of Economic Research, Assistant Professor, 経済研究所, 助教授 (30227532) ITOH Hideshi Kyoto University, Economics, Assistant Professor, 経済学部, 助教授 (80203165)
Project Period (FY)	1993 – 1995
Project Status	Completed (Fiscal Year 1995)
Budget Amount *help	¥10,000,000 (Direct Cost: ¥10,000,000) Fiscal Year 1995: ¥1,000,000 (Direct Cost: ¥1,000,000) Fiscal Year 1994: ¥3,000,000 (Direct Cost: ¥3,000,000) Fiscal Year 1993: ¥6,000,000 (Direct Cost: ¥6,000,000)
Keywords	Promotion / Seniority / Performance / 年功序例 / 査定 / 賃金決定
Research Abstract	We found the following points. (1) The most important element which determines the promotion in the Japanese firms is individual performance. The followings are luck, full, and schoolong. (2) Seniority system in Japan worked fairly well. (3) Corporate governance in Japan suggests that firms in Japan can be judged as labor managed firms because employers attempt to keep employees' employment. (4) "What university he graduated" is important to determine promotion. (5) It is desirable to determine promotion based on individual performance, and to treat engineers more favorably. (6) Professional workers should be treated equally as managerial workers.