INADVERTENT SUPPORT OF TRADITIONAL EMPLOYMENT PRACTICES: IMPEDIMENTS TO THE INTERNATIONALIZATION OF JAPANESE EMPLOYMENT LAW Yoichiro Hamabet INTRODUCTION The at-will employment system of the United States, which permits employers to hire employees during times of business ex- pansion and lay them off during recessions, arguably promotes fair and free competition for workers and jobs, resulting in an efficient labor market. American companies generally seek to keep lean manufacturing lines and efficient distribution systems, goals that do not permit paying salaries to unnecessary workers. In Japan, on the other hand, business enterprises, in accordance with social norms, assume responsibility for lifetime employ- ment-that is, long-term employment by a single firm, from hir- ing fresh out of college until retirement. This responsibility to provide long-term job security tempers cost-cutting measures for Japanese enterprises and has a number of side effects, both good and bad. First, preserving the numer- ous job positions in established industries can preclude effective enforcement of antimonopoly policy in Japan. Second, regard- less of changing economic conditions, Japanese companies feel compelled to retain male workers because typically they support their households; accordingly, a recession disproportionately harms the employment prospects of women. Furthermore, in or- der to benefit existing providers of employment, the Japanese government extends protection-such as exemptions from the t Visiting attorney, Masuda, Funai, Eifert & Mitchell, Ltd. (Chicago); mem- ber, Daini-Tokyo Bar Association; LL.B., Keio University, Tokyo (1985); LL.M., Indiana University School of Law (1992). The author would like to express his ap- preciation to Carol H. Morita of Masuda, Funai, Eifert & Mitchell, Ltd., for her useful comments. All unattributed translations from the Japanese are by the author.