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Internal Promotion and Wage Structure within Firm--Analysis by Micro-Data--

Research Project

Project/Area Number 05630025
Research Category

Grant-in-Aid for General Scientific Research (C)

Allocation TypeSingle-year Grants
Research Field 経済政策(含経済事情)
Research InstitutionHitotsubashi University

Principal Investigator

ONO Akira  Hitotsubashi University, Dept.of Economics, Professor, 経済学部, 教授 (60054318)

Project Period (FY) 1993 – 1994
Project Status Completed (Fiscal Year 1994)
Budget Amount *help
¥1,700,000 (Direct Cost: ¥1,700,000)
Fiscal Year 1994: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 1993: ¥1,200,000 (Direct Cost: ¥1,200,000)
KeywordsLifetime employment / Promotion within firm / Haenuki / Internal wage structure / Salaries by managerial positions / Cost-of-living compensation / 管理階層別賃金 / 教育と賃金 / 勤続年数と賃金 / 年令と賃金 / 賃金構造の日韓比較 / 生え抜き / 昇進速度 / 管理職の賃金 / 年齢要因 / 勤続要因
Research Abstract

A remarkable feature of internal promotion in Japan is saidto lie in the fact that in choosing candidates for higher managerial positions Japanese firms attach importance to whether or not the candidates join the companies fresh from school, that is whether they are so called "Haenuki"or not. The aim of my research is to ascertain the existence and the extent of this promotion practice and also to investigate how much wages increase when employees are promoted to higher positions. The data used in this research are the micro-data from Labor Ministry's Basic Statistical Survey on Wage Structure.
Main findings for internal promotion system are as follows. (1) Haenuki is promoted to higher positions faster than non-Haenuki. (2) Aging and slower rate of growth of the Japanese economy after the first oil crisis have decreased promotion speed much more for Haenuki than for non-Haenuki. (3) Unfavorable effects of work experience at other firms on promotion speed have also weakened after the first oil crisis. The facts (2) and (3) could be interpreted as a sign of declining lifetime employment system.
Regression analysis of internal wage structure clarifies following facts. (1) The regression model including tenure and age as major independent variables yields higher coefficient of determination than that which takes tenure and external experience into account. (2) Age factor plays an important role in Japanese wage structure. (3) The higher the managerial position, the larger the effect of age on wages. The second fact seems to suggest that the cost-of-living compensation hypothesis is still prevalent in the Japanese economy.

Report

(3 results)
  • 1994 Annual Research Report   Final Research Report Summary
  • 1993 Annual Research Report
  • Research Products

    (3 results)

All Other

All Publications (3 results)

  • [Publications] 小野旭: "昇進と企業内賃金構造" 一橋大学研究年報『経済学研究』. 36. 3-101 (1995)

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] Ono, Akira: ""Promotion and Wage Structure within Firm"" Annual Report on Researches at Hitotsubashi University Keizaigaku Kenkyu. Vol.36. 3-101 (1995)

    • Description
      「研究成果報告書概要(欧文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] 小野 旭: "昇進と企業内賃金構造" 一橋大学研究年報『経済学研究』. 36. 3-101 (1995)

    • Related Report
      1994 Annual Research Report

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Published: 1993-04-01   Modified: 2016-04-21  

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