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Differences in Initial Training and Wages of Japanese Engineering and Retailing Companies - Who Pays for Higher Training Costs?

Author

Listed:
  • Uschi Backes-Gellner

    (Department of Business Administration, University of Zurich)

  • Shiho Futagami

    (Yokohama National University)

  • Silvia Teuber

    (Department of Business Administration, University of Zurich)

  • Andrea Willi

    (Department of Business Administration, University of Zurich)

Abstract

The optimal human resource and skill development strategy is one important factor of economic success. This paper, therefore, analyzes industry-specific differences in the training provision between engineering and retailing companies in Japan and focuses in particular on the initial training provision for intermediate skills at the firm level. Based on 11 in-depth interviews in the retailing and the engineering sector in Japan, we find that gross training costs per basic trainee are significantly higher in engineering than in retailing. However, not only the engineering companies, but also their employees bear higher costs than their counterparts in retailing. The absolute and relative entrance wages for production employees are significantly lower than the entrance wages of employees in sale. Even though wages in engineering increase significantly stronger within the first five years, the absolute and relative wages in engineering remain still significantly lower. The results relate to the qualification levels of new trainees and the career paths.

Suggested Citation

  • Uschi Backes-Gellner & Shiho Futagami & Silvia Teuber & Andrea Willi, 2013. "Differences in Initial Training and Wages of Japanese Engineering and Retailing Companies - Who Pays for Higher Training Costs?," Economics of Education Working Paper Series 0090, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0090
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Training in Japan; Intermediate skills; Engineering and Retailing; Wages;
    All these keywords.

    JEL classification:

    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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