Has the “White-Collarization of Blue-Collar Workers” Been Accompanied by an Expansion of Internal Promotions ?

: Empirical Analysis of an Internal Promotion System for Blue-Collar Workers in Large Firms

Abstract

This paper investigates the “white collarization of blue-collar workers,” focusing on systems of promotion from within. Prior studies have suggested that blue-collar workers in Japan have a higher chance of promotions than those in other countries due to the characteristics of the Japanese employment system in terms of the nearness in compensation between blue- and white-collar workers. However, whether internal promotion systems are widely used among blue-collar workers in Japan has not been closely examined, as prior studies of promotion-from-within systems in blue-collar workers in Japan have primarily been based on indirect data or case studies.

To determine whether the findings of earlier studies can apply to the Japanese labor market, this paper drew data from the social stratification and social mobility surveys at four time points between 1965 and 1995 and clarified two points. ⑴ The promotion probability of blue-collar workers employed at large firms has decreased in later cohorts. ⑵ The effect of job tenure on promotions was essentially nonexistent. These findings indicates that in Japan, promotion-from-within systems for blue-collar workers differed from those for white-collar workers. Thus, this paper concludes that prior research has overemphasized promotion-from-within systems in Japan.