Abstract
This paper explores employment tenure and earnings profiles in Japan to explain the difference in the wages profile between the manufacturing industries and the financial insurance business. Central to my approach is Masanori Hashimoto and John Raisian [1985]'s wages function model in order to use the human capital theory. In the manufacturing industries, growth rates in earnings have been associated with tenure since 1985. On the other hand, growth rates in earnings haven't been associated with tenure in financial insurance business since 1985. As a whole, the total year of work experience is more important in financial insurance than in the manufacturing industries. These findings indicate that the pattern of the differences in employment tenure and earnings-tenure profiles is consistent with there being more specific human capital in the manufacturing industries than in the financial insurance business. In other words, the skill needed in industries is different. That can also account for the difference in the earnings profile between the manufacturing industries and the financial insurance business in financial deregulation of the 80s.
