Economic Barriers for Foreign Affiliates in Japan: The High Cost of Local Labour

Abstract

Investigates an economic barrier for foreign affiliates in Japan, the high cost of local labour: to attract qualified workers, foreign affiliates must pay a basic wage premium and offer fewer hours of work over their Japanese counterparts, a factor which reduces cost flexibility and impairs foreign competition in the Japanese market. Foreign affiliates′ inability to offer employment security is a plausible explanation for such wage premium.

Citation

Mourdoukoutas, P. (1992), "Economic Barriers for Foreign Affiliates in Japan: The High Cost of Local Labour", International Journal of Manpower, Vol. 13 No. 9, pp. 65-72. https://doi.org/10.1108/01437729210020723