PAPER Topics

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One of the unique and well known features of the Japanese employment system is permanent employment for workers. Japanese corporations responses to recessionary periods provide an opportunity to sort out the myths from the realities of the Jap ....

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... that allow them to reduce costs in the short-term without firing permanent male workers. The second way Japanese companies reduce costs is by giving early retirement to senior workers at the company. Many of these workers forced into early retirement then take up farming as is the custom in Japan for retires. Getting rid of senior workers is one the most effective tools companies have of reducing costs because these workers have more seniority and thus make more money then the average worker. Japanese companies also are able to cut costs during recessions by reducing or eliminating bonuses paid to workers, cutting down on hiring of new work ...