the post-World War Two era, lifetime employment became central for a meaningful sector of Japan's labor force employed by large firms.
It is noted that during the pre-War period, considerable job switching occurred -- both among new workers within the first ten years following their schooling and among skilled workers of the labor market. Thus, it follows that relevant causation for lifetime employment must necessarily have materialized at some point to facilitate the ascent of a less fluid workforce and ultimately, a closed external labor market.
It is recognized that Japanese labor law theory is firmly established in that of the Weimar Republic, which gave preference to group interests over that of the individual. The theory began to evolve during Japan's first industrialization at the end of the 19th century, when a severe shortage of skilled labor fostered worker migration from company to company. The situation was exacerbated when, in the 1920s, Japan underwent a series of hostile, chaotic strikes, which further caused significant labor turnover in key industries.
The resulting expense, inconvenience and disruption to employers, who were forced to constantly train new employees -- only to watch them move on to other companies -- caused firms to rethink the system. What followed was a package of incentives, including wages based on years of service and job security, i.e., lifetime employment, among others. As a result, employees were inclined to remain loyal. In return, employers invested heavily in training -- human capital -- which further fostered the sense of belonging that kept employees loyal to their company. Eventually, the institution came to encompass white collar workers, as well. Today, most medium to large companies recruit university graduates to join as permanent members of their staffs.
SOCIAL UNDERPINNINGS OF LIFETIME EMPLOYMENT
Izutaro Suehiro was among the first to recogniz...