LABOR ADJUSTMENT POLICY IN JAPAN

One of the characteristics of the Japanese economy,when compared to ot her industrialized countries, is its low unemployment rate. After reje cting the contention that the low rate of unemployment is caused by a statistical artifact, we explain it by the use of employment-adjustmen t policies undertaken on three levels: intrafirm, inter-firm and gover nment. Both macro data and a company case-study are presented to suppo rt the argument.