Conclusion
Japanese management must continuously adjust the quality and quantity of the labor force to changing market and technological conditions under the well-known constraints of life-time employment guarantees and a promotion and wage system based on seniority. The “pre-retirement step down” andshukko are some of the more widely used means to achieve this objective. Under these practices, a majority of older workers experience gradual downward mobility in terms of prestige and benefits, though their employment is secure up to the official retirement age of around 60 and likely to continue beyond that time as long as their performance is satisfactory. A minority of workers even enjoys an improvement in status and benefits as performance and skill rather than mere seniority become increasingly important in the late stages of their career. The Japanese practice of phased retirement is likely to remain as an effective policy, provided that the practice of business groupings continues, the aging of the labor force is gradual, and the Japanese economy remains reasonably healthy.
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References
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Ibid.
Ibid.
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Osako, M.M. “Downward mobility” as a form of phased retirement in Japan. Ageing International 15, 19–22 (1988). https://doi.org/10.1007/BF03002119
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DOI: https://doi.org/10.1007/BF03002119