Skill Formation In Japan: The Broader Context And Recent Developments

Abstract

Abstract Japan's approach to skill formation has been regarded by many commentators as worthy of emulation. Skill formation in Japan is commonly seen as predominantly enterprise based and mostly imparted through on-the-job training. This paper challenges that view by arguing that this enterprise focus has been overemphasised by researchers at the expense of a broader understanding of the skill formation process in Japan. The paper draws on official statistics and survey data from the Ministry of Labour and on enterprise case studies conducted by the author in the Nagoya, Hiroshima and Kansai areas in January- February 1993. One major finding of this analysis is that the Government plays a far more important role in the skill formation process than many accounts of skill formation in Japan allow for. Particular attention is drawn to survey data that show that enterprises in 1991 are making more use of the National Skill Tests compared with 14 years previously. Also important in the skill formation process in Japan is the role of the large private training provider sector external to and separate from the enterprise. A number of case studies and survey evidence are drawn on to show that there are emerging signs that within the enterprise informal on-the-job training, so much a feature of past practice in Japanese workplaces, is becoming less important as the major means of skills acquisition. Many large enterprises are seeking to provide more theoretically based training to enable front line workers to operate more sophisticated technology on the assembly line and in other manufacturing operations. The policy implications of this broader and more up-to-date view of skill formation in Japan are canvassed with particular reference to Australia.