The Effects of Japanese Employment Systems on Attitudes Toward Employing Foreign workers

Abstract

This paper examines how Japanese employment systems affect companies’ attitudes toward the employment of foreign workers. Foreigners working in Japanese companies is now a common phenomenon. Some foreign workers who work in Japanese companies cannot adapt, and they leave their companies after some years; companies as well as researchers have taken cognizance of this serious problem. Many studies have found that the cause of such problems lies in the customs espoused by Japanese traditional employment practices and systems; these systems hinder the acceptance of others within the organization. Utilizing quantitative data from 171 companies listed on the Tokyo Stock Exchange, this study investigates the relationship between the systems used by Japanese companies and the attitudes toward accepting foreign workers in such companies. The findings of this study suggest that the expected relationships between Japanese traditional employment systems and companies’ attitudes do not exist. After controlling for the year of establishment, the numbers of employees, sales volume, and the category of business, Japanese traditional employment systems are found to be related to positive attitudes about the employment of foreign workers.