School–work systems in postindustrial societies: Evidence from Japan

The Japanese system of school–work has been widely admired for the strong communication and recruitment relationships that exist between high schools and employers. We develop a framework for understanding the macro-level conditions that fostered the effectiveness of the system up until the early 1990s. These conditions included a stratified secondary educational system, a large supply of high-quality high school graduates, and high demand for young workers to fill entry-level positions in the internal labor markets of large firms. We use original data from a sample of urban high schools to analyze how Japanese employers’ recruitment patterns changed in the 1990s and beyond. The results of that analysis and a counterfactual analysis suggest that recent changes, especially in Japanese employment institutions, have significantly weakened high school–employer relationships. We suggest implications of the Japanese case for school–work processes in other postindustrial societies.