The salient features of the Japanese labour market are explained in this volume, the key idea being integrated segmentation. Emphasis is on segmentation: on the demand side, within the educational system and, on the supply side, monitoring costs which underlie labour contracts. Using long-run official government statistical evidence, it is argued that what is peculiar to Japan is the integration of segmented labour markets. By virtue of segmentation the Japanese labour market is deeply competitive. By virtue of integration it is highly co-operative.

This volume explains the salient features of the Japanese labour market and their evolution through time. The key idea is integrated segmentation: on the demand side, within the educational system; on the supply side, monitoring the costs which underlie labour contracts. Demand- and supply-side segmentation exists in a number of countries. What is peculiar to Japan is the way demand and supply segmentation overlap and the muting of the wage and income differentials which segmentation generates. Because it is segmented on both supply and demand sides the Japanese labour market is highly competitive; but because it is integrated, cooperation is deeply rooted within it as well.