e than able to handle the job (Minami 1994). Despite all the above mentioned, wage differential still prevail in Japan. In an economy, as long as labourers have different level of skills that requires time to acquire, and the demand for these skills changes with economic progress then some wage differentials would persist (Paine, 1971 p.234). Furthermore, in Japan, the continued existence of the two unique systems namely; lifetime employment and seniority wage systems. Then differences in wage levels, productivity and capital-labour ratios between large and small firms still exist therefore “dual structure” in the manufacturing in Japan still persist but the differential gap is becoming narrowed. ...
