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Title: |
Bonus Payments and Pay Flexibility in Japan |
| Author: |
Rupert, Peter |
| Author
Affiliation: |
SUNY, Buffalo |
| Source: |
International Economic Journal, Autumn 1991, v. 5, no. 3, pp. 31-38 |
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Publication Date: |
Autumn 1991 |
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Abstract: |
Many have suggested that the bonus system
in Japan adds flexibility to earnings. This paper tests that hypothesis
with data across firm size and worker type. It is shown that the bonus
payments are pro-cyclical, corroborated in other studies, but are used
in significantly different magnitudes across firm size. The variability
of bonus payments varies inversely with firm size, perhaps due to the
positive correlation between firm size and lifetime employment
contracts. |
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