Changing the Wage Structure through Personnel System Reform: Empirical Analysis of the Differences in Prefectural Police Job Ranks

Abstract

This paper empirically examines the effects of personnel system reform at the Prefectural Police on differences in job grades, which are considered to significantly influence promotion incentives. The analysis found that after Prefectural Police personnel systems were overhauled, differences in wages among job grades widened and age became a less important factor. In short, the starting pay is higher for police work than for general civil service jobs, but because the screening process for police jobs is so strict, future pay raises are lower; so is the average compensation. However, a personnel policy that supplements relatively low pay with good benefits is the general wage practice in Prefectural Police departments. This paper confirms the major point that wage structure reform that increases pay differentials between job grades and promotion system reform that makes it easier to advance to the Assistant Police Inspector level serve as incentives both to those who are likely to be promoted and to those who are not.