ABSTRACT

The most prominent feature of Japanese firm was precise evaluation concerning employees’ dexterity. Employers were eager to promote the dexterity until the early 1990s. Since physical capital can record more efficiency by high-quality labor force (i.e., process innovation) and such dexterous employees are also rewarded by stable employment environment (lifetime employment) and relatively even wages (seniority wages), this managerial strategy motivated both employers and employees.