Development Bank of Japan
Research Report
No. 16

Revitalization of Middle-aged and Elderly Workers
in Japan’s Labor Markets:
Requiring the Expansion of the Vocational Training
Functions

March 2001

Economic and Industrial Research Department
Development Bank of Japan

Contents
Summary ............................................................................................................................. iii
I.

The aging of Japan’s Population and Unemployment Conditions among
Middle-aged Workers..................................................................................................... 1
1. Japan’s Rapidly Aging Population and its Effects ................................................................... 1
2. Acute Unemployment among Middle-aged Japanese Workers............................................. 4

II. The Current State of Vocational Training in Japan.......................................................9
1. Attitudes and Thinking Regarding Vocational Training......................................................... 9
2. Short-term Vocational Training of a Supplementary Nature ..............................................10
3. Medium to Long-term Development-type Vocational Training.........................................16
III. The Current State of Vocational Training in the United States .................................. 21
1. Educational System and Vocational Training Subjects in the U.S......................................21
2. The Function of Professional Schools....................................................................................22
3. The Function of Community Colleges ...................................................................................22
IV. One of the Future Directions for Vocational Training in Japan ................................. 29
1. Human Resources Training for Management-related Sectors.............................................29
2. Specific Approaches at Universities and other Educational Institutions...........................32
3. A Vocational Training System that Utilizes Universities as a “Place” ...............................34
4. A Final Word - Support Being Asked of the Public Sector and Firms –...........................35
References........................................................................................................................... 37

Development Bank of Japan Research Report/No.14 i

Revitalization of Middle-aged and Elderly Workers in Japan’sLabor Markets:
Requiring the Expansion of the Vocational Training Functions

Summary
1. Japan reached the stage where “7% of the total population is elderly age 65 or older”, thestandard set by the United Nations to define an aging society, in 1970. The percentage increased
to more than double (14%) only in the following 24 years. Even when viewed internationally, theaging of Japan’s population is proceeding with remarkable swiftness. As Japan’s demographics
change, the growth in the social security burden for the elderly has become more evident, theproblem of a future labor shortage is predicted, and in addition the awareness of the need tocreate employment opportunities for the elderly who retire as a matter of course based on theretirement age limit system and the elderly-to-be, middle-aged workers (age 45 or older), is
growing. A change can also be seen in attitudes towards individuals’ life plans.
2. When one examines the characteristics of unemployment in recent years, the high rate ofunemployment for young workers is striking. It is the size of the rate of increase in
unemployment from 1996 through 1999, however, or the percentage of unemployment frominvoluntary and sudden causes such as “dismissals and personnel adjustments”, where theunemployment for middle-aged individuals can be said to be more serious. Moreover, the factthat opportunities for reemployment are extremely limited once a worker loses his or her job
because of employers’ age requirements is a principal reason for the increase in the degree ofseriousness.
As companies proceed with rationalization of business operations, it has been conjectured
based on the premise of seniority-based wages that a strong recognition that ability and wage
levels are misaligned lies behind trends such as the dismissals of middle-aged workers inparticular. In recent years, however, many firms have started to review their wage system. With
the change in a direction of emphasis on ability, the needs for vocational training are predicted to
expand even further.
3. Given present conditions in Japan, however, highlighting the inadequacy of the vocational
training functions that can meet these needs is inescapable. The division of vocational training
into two types must be considered. One is what might be called emergency, stop-gap measures ofa short-term supplementary nature, including responses to the current problem of unemploymentof middle-aged workers. The other is medium to long-term development-type programs that aim
at broader, more value-added improvement in the future, even though this training will require alonger amount of time. In Japan, improving functions corresponding to both of these needs isrequired.
Vocational training will be accomplished from an increase in practical capabilities and achange in awareness. The former, moreover, entails a process concerning abilities that goes from
Development Bank of Japan Research Report/No.14 iii

“taking stock” (discovering) → “reorganizing” (arranging) → “supplementing” (applying). For
short-term supplementary-type vocational training, a change in awareness and subjecting
capabilities to a process of “taking stock” → “reorganizing” is particularly needed. Outplacement
is now attracting attention as a business that emphasizes this process given scant attention in thepast. The healthy development of human resources businesses like this, and the strengthening of
the functions of public employment skills development facilities in a complementary role, havebecome short-term supplementary-type vocational training issues.
4. In addition, in order to meet this surge of heightened awareness and the need for employees
to strive to improve their abilities from an early stage prior to entering their middle years,
medium to long-term development-type vocational training that can cope with these needs willgrow in importance in the future.
In Japan, universities focus on theories and research and maintain an academically high levelbut overall do not concern themselves deeply with education for pragmatic skills or knowledge.
Various types of schools intended to close this deficiency have evolved mainly to fulfill roles inproviding an education that is general-purpose and fundamental or focused on single skills.
Therefore, the function in teaching applicable, practical abilities in some specialized areas is
unsatisfactory.
In contrast to this, in the United States various vocational training systems have been put into
place on the premise that individuals must take personal responsibility for developing their skills
or adaptable competitive potential. Professional schools, such as business schools or community
colleges, fulfill this function by shaping themselves to respond to the various types of needs fromthe standpoint of educational content or expenses.
5. “Management-related sector human resources training” can be visualized as one of the future
directions of vocational training. Changes such as the explosion of new company start-ups or
rationalization of business operations at existing firms are expected to stimulate demand as one
field of emphasis. Already some universities are addressing pragmatic education such as
management in a forward-looking manner, mostly at the graduate school level. In addition toturning these efforts into tangible results in the future, however, universities can provide evenbroader vocational training opportunities by changes such as inexpensive tuition or fewer time
restrictions. Adding a role such as that played by community colleges in the U.S. will probably
also prove indispensable for Japan.
Following the realization of this function, the preferable vocational training system in Japan
will be centered on universities as a “place” for vocational training. Such a system would be
effective in compensating for weak human resources while continuing to use the practical knowhow accumulated there through collaboration among industry, private human resources services
professionals and local citizens (what might be called “collaboration between industry andacademia also including arts and sciences”). Organizations such as local government bodies will
preferably occupy the role of coordinator aimed at building such alliances. In addition, broad
support such as measures by the government to lighten the expense burden on individuals
seeking self-development, or efforts by companies to provide appropriate recognition or
evaluation of employee self-development, are also required.
The efforts or support of various individuals such as those indicated above can be expected totrigger a desire for broadening of vocational training functions or improvement of individual
skills in Japan. This in turn can also be expected to be connected to the revitalization of middleaged workers in future labor markets.
iv Development Bank of Japan Research Report/No.14

I. The aging of Japan’s Population and Unemployment Conditions among
Middle-aged Workers
1. Japan’s Rapidly Aging Population and its Effects
Compared to leading countries in Europe and the U.S., Japan was late in being recognized as acountry with an aging population. Japan reached the stage where “7% of the total population iselderly (age 65 or older)”, the standard set by the United Nations to define an aging society, in1970. As can be seen from Figure 1-1, the comparable percentage in the U.S. at that time was
9.8%, and Germany and Sweden had already reached a level of 13.7%.
When examined by comparing the number of years required for this percentage to double,
however, Japan reached 14.1% in 1994, requiring only a brief 24 years in contrast to Sweden,
which required 85 years, or even to Germany, which took approximately 40 years. Furthermore,in 1999 the same percentage reached 16.7%. Even when viewed internationally, the aging ofJapan’s population is proceeding with remarkable swiftness.
Figure 1-1 Change in Percentage of Population Age 65 or Older(International Comparison)
30

％

1999
Japan
16.7

25
20
15
10
5
0
1960

65

70
Japan

Sources:

75

80

85

United States

90

95

2000
Germany

05

10

15
Sweden20

25(Year)

China

Japan: National Institute of Population, National Census data until 1995, Projected Population for 1996-1999,
and Japan’s Future Projected Population - January 1997 Projection, and Social Security Research for 2000
and after (Median projection)
Other: United Nations data

Aging has various influences on social or company mechanisms. For example, look at thesocial security burden ratio in Figure 1-2. The ratio has maintained an upward trend since Fiscal
1975 (9.5%), rising to 17.0% in Fiscal 1995 and 17.8% in Fiscal 1997. During this period social
security benefit expenses consistently increased, and the increase in payments to the elderly inparticular rose. Payments to elderly individuals in Fiscal 1997 were ¥45,140.1 billion, accountingfor 65% of total social security benefit expenses (the same benefits in Fiscal 1975 were 32.9% of
Development Bank of Japan Research Report/No.14 1

total payments). The increase in the social security burden for Japan’s elderly citizens is becoming
increasingly obvious.
Figure 1-2 Change in the Social Security Burden Ratio
80

Yen, trillions

％
20
18

70

16

60

14

50

12

40

10

30

8
6

20

4

10

2
0

0
1975

80

85

90

95

97

Fiscal year

Social security benefit expenses (A)Amount related to the elderly(A)/National Income (Right-hand scale)
Source: National Institute of Population and Social Security Research, Fiscal 1997 Social Security Benefit Expenses

Let us next look at Japan’s labor force population (the total of employed individuals andpersons wholly unemployed among the population age 15 and older). As shown in Figure 1-3,
despite the fact that the labor force continued to grow after 1975 and reached 67,930,000
workers in 1998, the labor force is projected to reach a peak in 2005 (68,560,000 individuals) andthen decline. In addition to this change, when examined by age bracket Japan’s labor force ischaracterized by a declining percentage of young workers and an increase in workers in the
middle-age bracket. This demonstrates that while firms are moving ahead with the rationalizationof business operations, the fact of the matter is that Japan is faced with a future labor shortage
problem.

2 Development Bank of Japan Research Report/No.14

Figure 1-3 Changes in Japan’s Labor Force Population and Projected Trend
Millions of workers

7,000

1998
6,793

6,500

6,000
Actual
5,500

5,000
1975

80

85

90

95

2000

5

10

15

20

25

Year

Sources: For data until 1998: Management and Coordination Agency, Labour Force Survey
For data after 2000: Ministry of Labor, Employment Stability Office Estimates (October 1998)

In addition, if we focus on the desire of (individual) workers to work, as of 1998 the average
life expectancy of Japanese males was 77.16 years, and the average life expectancy of females was
84.01 years. Both men and women are living longer, and the past manner of thinking of“mandatory retirement at age 60 and a life of leisure thereafter” also is continuing to change.
Figure 1-4 shows the results of an attitude survey in which nearly 90% of individuals aged 60 orolder expressed the desire to continue working.
Figure 1‐‐4 Age to which Individuals Wish to Continue Working(Desired retirement age: asked of workers age 60 or older)
Other
2.0%

Until about age
60
8.2%

Until about age
70
33.4%
No age stated30.0%

Until about age
75
4.3%

Until about age
65

Source: Management and Coordination Agency, attitude survey data (1998)

Development Bank of Japan Research Report/No.14 3

These results show that for society as a whole, as well as from the standpoint of firms orindividuals, ensuring and expanding employment opportunities for elderly individuals who retired
as a matter of course based on the past mandatory retirement age system and the elderly-to-be,
middle-aged individuals (age 45 or older used as a yardstick, based on referral to sources such as
the employment insurance system) is very significant.
2.

Acute Unemployment among Middle-aged Japanese Workers

2.1. Characteristics
Turning to the characteristics of unemployment by age as shown in Figure 1-5, the level of theunemployment rate for young workers ages 15-24 is very conspicuous. In Figure 1-6, however,when we look at the number of unemployed individuals in 1999 or the percentage increase in
unemployed individuals from 1996 through 1999, the amount of unemployment among middleaged workers as well is impossible to ignore.
Figure 1-5 Unemployment Rate by Age Bracket
10 ％
9.1
9
8
7
6
5
4
1996
3
2
1
0
Ages 15-24

1999

5.5

5.4
3.3

3.2
2.2

25～34

35～44

45～54

55～64

Ages 65 andolder

Source: Management and Coordination Agency Statistics Bureau, Labour Force Survey

Figure 1-6 Number of Unemployed Individuals by Age Bracket
60

Thousands ofindividuals
100％
Percent increase in the number of unemployed individuals from 1996?1999

90

50

80
70

40
Number of unemployed individuals in1999 (Right-hand scale)

60

30

50
40

20

30
20

10

10
0

0
Ages 15-24

25-34

35-44

45-54

55-64

Ages 65 andolder

Source: Management and Coordination Agency Statistics Bureau, Labour Force Survey
4 Development Bank of Japan Research Report/No.14

Moreover, the severity of unemployment among middle-aged workers is also strikingly
demonstrated in the reason that the unemployed individual lost his or her job. As shown in
Figure 1-7, the percentage of individuals who cited “business establishment closure, company
bankruptcy or closure of one’s own business” or “dismissal or personnel adjustments” as thereason they lost their job was only about 10% for the young age bracket, but exceeded 30% for
middle-aged workers. In other words, in contrast to the case of unemployment among young
workers - where personal reasons for unemployment such “working conditions differed fromwhat I thought before being employed” or “I had other work I wanted to do” are relatively
plentiful - the large number of unemployed middle-aged workers who cited non-personal, sudden
and unexpected reasons is serious. Furthermore, Figure 1-8 shows that until recently the trend
for this situation was slowly worsening.
Figure 1-7. Percentage by Reason for Leaving Last Job,
by Age of Persons Wholly Unemployed
Ages 15-24
25-34
35-44
45-54
Ages 55 and older
0

10

20

30

40

50

60

70

80

90

100 ％

Business establishment closure, company bankruptcy or closure of one’s own business
Dismissal or personnel adjustments
Mandatory retirement or end of contractual employment period
Concerns about the future of the company where I worked
Worsening of working conditions
Working conditions differed from what I thought before being employed
Had other work I wanted to do
Marriage, childbirth, child rearing, etc.
Reasons such as nursing care, family affair, education, illness
Others
Source: Management and Coordination Agency Statistics Bureau, Special Survey of Labor Force Survey (August 1999)

Development Bank of Japan Research Report/No.14 5

Figure 1-8 Percentage of Management/Personal Reasons, by Age Bracket
Comparison of between two time periods
100

％

90
80
70

1993 - Individual reasons60

1998 - Individual reasons

50

1993 - Management
circumstances
1998 - Management
circumstances

40
30
20
10
0
Age 19and below

20～24

25～29

30～34

35～39

40～44

45～49

50～54

55～59

Age 60and older

Source: Ministry of Labor, Survey on Employment Trends

In addition to these circumstances, the fact that many middle-aged workers face substantial
burdens from home loans or children’s educational expenses, and find fewer potential employers
and extremely limited reemployment opportunities once they lose their jobs, adds to the severityof the problem.
2.2. BackgroundAs firms proceed with rationalization of business operations, in addition to concerns about theability of middle-age and elderly workers to adapt to change, or changes in the businessenvironment effecting firms such as replacement of management activities by the spread of IT
technology, in Japan companies’ own wage systems (based on the premise of lifetime
employment) also exert a large influence. This is particularly true of the background that pertains
to dismissals or personnel adjustments effecting middle-aged workers. As seen in Figure 1-9,
presupposing the seniority-based wages that formed the standard in the past, the mere fact thatcompanies have middle-age and elderly workers is tied to large increases in personnel expense
regardless of workers’ abilities. This is the reason that firms are addressing cost reductions by first
focusing on changes such as dismissal of middle-aged workers.

6 Development Bank of Japan Research Report/No.14

Figure 1-9 Predetermined Wages by Firm Size and Worker AgeYen, thousands
500
450
400
350
300
250
200
150
20～24

25～29

30～34

Firm size, total

35～39

40～44

1,000 or more employees

45～49

50～54

55～59

100-999 employees

60～64 Age

10-99 employees

Source: Ministry of Labor, Bulletin of the Results of the 1998 Basic Survey on Wage Structure

Moreover, the difficulty for middle-aged workers to find reemployment after being
unemployed has also been noted. As shown in Figure 1-10, approximately 40% of middle-aged
unemployed workers cite the fact that “my age doesn’t meet employers’ age requirements” as thereason for being unable to find a job. This too is believed to reflect the fact that, because of therecognition of a mismatch with the so-called “firm specific” capabilities and level of expected
wages of middle-aged workers, employer firms have become cautious about hiring middle-aged
workers.
Figure 1-10 Percentage, by Reason, for Being “Unable to Find Work”,
by Age Bracket of Wholly Unemployed Individuals
Wages or salary do not match what I wantAges 15-24

Working hours, days off, etc. do not match what I
wantMy age doesn’t match employers’ age requirements

25-34
The kind of work I want isn’t available
Work where I can use my knowledge or abilities isn’t available

35-44

Work that meets my knowledge or skills isn’t
available because employers have high technicalstandards
Work isn’t available in the form I want such as fulltime, part-time or second job

45-54

No work is available nearby
No work even though conditions do not differ
from my requirements

Ages 55 and older

Other reasons

0

20

40

60

80

100
％

Source: Management and Coordination Agency Statistics Bureau, Special Survey of Labor Force Survey (August 1999)
Development Bank of Japan Research Report/No.14 7

2.3. Actions by Firms to Review their Existing Wage System
Firms that have acknowledged the inefficiency of the uniform seniority-based wage mechanism
used in the past and begun to review the system have also already begun to appear. Table 1-1
illustrates the response of large electric machinery manufacturers, using materials cited in sources
such as newspapers.
Table 1-1. Summary of New Wage Systems at Large Electric Machinery Manufacturers

NEC

Toshiba・ Will expand its performance-based wage system from management to all regular employees(primarily white collar) in the fall of 2000. After setting a standard amount for raises by type of workor qualifications, will add a differential by including a portion determined by performance (Fromincreases up to 2.5 times the standard raise to amounts less than the standard raise).
・ In addition to the traditional wage system focused on time management, beginning in Fiscal 2000
will introduce a performance-oriented system (for non-management white collar workers) by which
employees can earn up to 1.6 times the standard annual salary based on performance. The new
system will not include overtime allowances, but will increase base salary by 20% over the pastamount and will also increase bonuses twice annually according to the level of work performance.
Attendance for a minimum of 30 minutes every day will be a required condition, but all otherevaluations will be based entirely on performance.

Fujitsu・ Has completed introduction of a performance-based wage system.

Hitachi・ Will introduce a new personnel system (for managers at the section chief level or higher) thateliminates seniority factors in Fiscal 2000. The system uses reviews of personality or results as aleader based on new “Hitachi values” as the basis for raises and promotions. Activity managers forindividuals in their 30 years old, and jumps in rank or demotions are also possible under the system.

Sanyo・ Will introduce a total performance-based wage system (for all employees) in Fiscal 2000.

Matsushita

・ Plans to introduce a system to establish differentials in salary based on employment location.

・ Introduced a “Total Personnel System” centered on performance results for section chiefs anddivision managers in 1995 and for all regular employees in 1997, with the goal of changing personnel
Yokogawa Electric
expenses into variable costs. Has functions centered on a performance evaluation system orobjectives management system.
・ Studying the introduction of a system that evaluates employees who have management consultant orother high-level specialized knowledge or skills with an expert rank salary level (annual salary ¥30-40
Japan IBMmillion level). System would initially be applied to 7-8 individuals and eventually be expanded toabout 150 individuals.
Source: newspaper information

It is expected that together with the increase in these kinds of approaches, the evaluation
standards used in the future for company employees also will shift away from seniority in a
direction that focuses on ability or natural talent. Under such systems, middle-aged workers will
be able to secure appropriate employment opportunities or wages if they are able to demonstrate
their superiority compared to younger workers, by taking advantage of their experience or
personal relationships. We may assert, that faced with this kind of environment, the need to
improve one’s own capabilities will increase, and this in turn will mean that needs for vocational
training will also expand further.

8 Development Bank of Japan Research Report/No.14

II. The Current State of Vocational Training in Japan
1. Attitudes and Thinking Regarding Vocational Training
In the previous chapter we discussed the need for improving the job skills of middle-aged
workers and for vocational training needs. Given present conditions in Japan, however,highlighting the inadequacy of the vocational training functions that can meet these needs is
inescapable.
The vocational training concept is illustrated in Figure 2-1.
Broadly classified, vocational training consists of both improvement of practical abilities and achange in awareness that underlies and supports this activity. The former, moreover, entails aprocess that involves “taking stock” → “reorganizing” → “supplementing” with regard toabilities.
Figure 2-1. The “Vocational Training” Process
Taking stock of abilities(discovering)

Reorganizing abilities(arranging)

Supplementing abilities(applying)

Personal
relationships

Improvement ofpractical abilities

Knowledge
Experience

Vocational
training
Change inawareness

awareness of real ability, cultivation of desire

Source: Development Bank of JapanThe change in awareness included in the base refers to mentally preparing the psychologicalenvironment needed to continue working. This includes actions such as an objective evaluationof one’s actual abilities, or suitable acknowledgement of the position in which one finds oneself,and cultivation of the will to work and self-confidence. To accomplish this, the understanding ofand cooperation of surrounding individuals are indispensable elements. Sometimes a change inawareness is needed not only the individual himself or herself but also in his or her family. Finally,
because frequently psychological ups and downs will occur repeatedly during vocational training,a change in awareness corresponding to one’s circumstances is called for.
The first step towards improvement of practical skills that takes these factors into
consideration is “taking stock of one’s abilities”. This is a critical process of looking back over
one’s employment experience up to the present to “discover” the latent capabilities formed by
the knowledge and personal relationships cultivated over the years. This is followed by“reorganizing one’s abilities”, a process by which these abilities, which at a glance appear to beinconsistent, are combined to “arrange” for any possibility where one can display one’s
superiority in some area. In the third step, “supplementing abilities”, workers “apply” theirstrengths by taking steps to make up their weaknesses and form added value, which will be
displayed as the final result.
Development Bank of Japan Research Report/No.14 9

When considering vocational training it is necessary to divide training into two categories.
One is what might be called short-term, supplemental type of training. This includes responses tothe problem of unemployment among middle-aged workers that efficiently forms added-value
within a range of what is possible now, basically by utilizing existing abilities. The other ismedium to long-term development-type training. Although this requires a certain length amountof time, this type of training aims at even greater, broad-based value added improvement in the
future. In Japan the broadening of functions corresponding to both of these needs is required.
2.

Short-term Vocational Training of a Supplementary Nature

2.1. The Importance of a Change in Awareness and “Taking Stock” of one’s Capabilities
In many cases, individuals such as unemployed middle-aged workers characterized by having losttheir jobs for external reasons will lose their will to work and their self-confidence. Frequently
they also lack any perception of an objective assessment of their real strengths. In an effort tofind work they may register with a temporary employment agency or job recruitment firm. Even
when they receive an interview opportunity, however, very often they are unable to make astrong appeal for their own superior abilities and fall into a condition where it is difficult to findreemployment.
In the case of middle-aged workers who own a home, certainly it is conjectured that they are
limited by the time or cost they can invest for vocational training. Compared to younger workers,
it is harder for them to learn skills in a new field. Middle-aged workers, however, already possessa wealth of employment experience and practically-accumulated knowledge. It would probably
possible to greatly increase the possibilities for ensuring their superior abilities if they could justextract these abilities and utilize them efficiently. Businesses such as outplacement(reemployment support), that is being looked upon as the newest personnel business, may be said
to be based on this idea.
2.2. Summary of the Outplacement Business
Reemployment support is a business that places importance on a change of awareness, a concept
barely touched upon in past concepts of vocational training. Reemployment support alsoemphasizes the process of “taking stock → reorganizing” of individual abilities (Figure 2-1). The
size of the market is currently said to not exceed more than ¥10.0 billion annually (about 1/10
the level in the U.S.). The business has spread more slowly than temporary job placement, whichreached a market size of approximately ¥1,570.0 billion in Fiscal 1998. But compared to thegrowth in the job placement business of 7.7% since Fiscal 1998, as shown in the Nikkei
Shimbun’s “17th Annual Comprehensive Survey of the Service Industry”, outplacement for thesame period grew remarkably by 106.6%. This indicates that the importance of this industry has
begun to be understood. Outplacement firms receive a consignment from firms that will
restructure to provide reemployment support through means such as offering counseling or
know-how to employees whose jobs will be eliminated. The company from which they receive
their contract pays the reemployment firm, not the individual employees. As shown in Figure 2-2,
in contrast to Hello Work or the traditional type of executive recruiters, which focus mainly on theneeds of companies seeking employees, reemployment firms stand on the side of companies thatare restructuring and of the individuals seeking work (employees who will leave their positions).
Their aim is to provide support so individuals seeking employment can quickly find work thatmeets their needs.

10 Development Bank of Japan Research Report/No.14

Firms seeking
employees

Hello Work

Temporary employment
agencies and job
recruitment firms

individuals seeking
work

Outplacement(Reemployment support
Businesses)

Restructuring
firms

Figure 2-2 Characteristics of the Human Resources Business

Source: Development Bank of Japan

Drake Beam Morin - Japan, Inc., founded in 1982, is positioned as the largest company
dedicated to reemployment support in Japan. The company has grown to ten offices throughout
Japan. The specific content of the firm’s reemployment support program is shown in Table 2-1.
It can be understood from the company’s inception in New York (1967), that an
outplacement business started in the U.S. and has expanded rapidly based on the concept, relieve
anxiety “relieve anxiety and act on behalf of both the managers of restructuring companies andindividuals seeking employment”. This is in contrast to Japan, where the responsibility of many
firms towards individuals who will be laid off has stopped with the payment of a relatively large
severance payment. Because the thinking, “why does our firm have to be involved to the extent
of reemployment support?” has been firmly entrenched in managers minds, the significance ofsuch support was difficult has fear. In more recent years, however, the understanding of the needfor such services has finally spread and the number of firms other than foreign-related firms thatare using this business has increased.
Together with the growth in the market, the number of entities - including participation bytraditional type of temporary employment agencies - has been increasing. Because a strict
definition of the reemployment support activity itself is still changing, however, and reliable
statistic are also not available, the number of firms is said to range anywhere from 30-40 to as
many as 100 companies. This includes firms such as Drake Beam Morin - Japan, Inc. that offer
full-scale support, as well as companies that provide only interview training. In addition,competition has recently become more severe with the increase in the number of newparticipants, contract fees have plunged, and problems such as insufficient know-how on the partof the support service companies or deteriorating quality of counseling have also multiplied.
Added to this is another problem. Because outplacement firms participate in the support process
up to the point of an introduction to an employer, for individuals seeking employment they havethe merit of making it simpler to smoothly find reemployment. On the other hand, however, they
can abuse the differences in mechanisms for payment from both businesses and can earn a fee
twice for a single reemployment application, once from the restructuring firm and once from thefirm seeking to hire workers. Moreover, although currently the industry is exclusively targetinglarge firms, many future issues - such as the need for the reemployment support function for
individuals being laid off by small and medium-scale firms or small business as well as forindividuals - have also been pointed out.

Development Bank of Japan Research Report/No.14 11

Table 2-1. Content of an Outplacement Program
Week One・Provide encouragement
・Establish a relationship of trust・Begin self-assessment
・Verify employment history
・Qualification tests
・Employment suitability tests
Week Two・Explain the results of various tests
・Gather basic data for preparing resume
・Verify own experience, knowledge and abilities
・Verify the objectives of reemployment
Week Three・Complete resume (Japanese, English versions)・Interview training (Explanation, videos, simulations, written tests)
Week Four・Begin employment search activities (Job placement firms, want ads, information from DBM, DM,
etc.)
・Provide guidance on how to send letters seeking work
・Handling inquiries
Week Five and after・Provide advice on negotiating with executive recruiting firms and firms seeking employees
・Provide advice on negotiating terms and conditions with potential employers
・Counseling concerning reemployment (mental attitude, precautions, etc.)
Source: Materials provided by Drake Beam Morin - Japan, Inc.

In the U.S., the stable growth of the reemployment support business is said to be continuingeven though the economy has improved, because firms are carrying out continual restructuring as
they reorganize their business or because employment mobility is continuing. In Japan as well,
the association in regard of outplacement business was formed in December 1999 amidst
expected further growth in the size of the market. As of May 2000, 30 companies had joined theassociation, including ten full-time reemployment support firms. The results of the association’s
future activities are certain to attract attention.
2.3. Activities of Businesses Related to “Supplementing Abilities”
In addition to outplacement firms that emphasize efforts such as “taking stock of abilities”, thefirst part of vocational training, various kinds of firms illustrating the second part of the process a change in thinking whereby vocational training now means emphasizing “supplementing
abilities” - have also grown (Figure 2-1). In many cases, companies that were participating in theexecutive recruiting business are characterized by the fact that they have acknowledged thattraining their registered staff is indispensable to their survival. Many have begun to strengthen
their educational and job training systems. In addition firms from completely unrelated industries
have also entered the business.
12 Development Bank of Japan Research Report/No.14

◆ JSL
Takes employees from indirect departments such as general affairs, accounting or
personnel in the form of transfers, and places them in companies as expert personnel
after providing vocational training. In addition to placing workers with their original
firms, also earns a profit by contracting workers to small and medium-size firms thatwant to outsource their indirect departments. Employees transferred to JSL areguaranteed the salary level they had at their old employer for one year, and can also
increase their business expertise.
◆ Price Waterhouse Coopers BPO Japan
Price Waterhouse, one of the world’s “Big Five” accounting firms, established thiscompany as the mother firm for new businesses. The company will accept all of theemployees from a firm’s indirect department such as accounting, finance or personnel,
increase the capabilities of the transferred employees’ by conducting on-the-job
training through expert lectures utilizing sources such as the Internet, and place themfor work from the employee’s old company or other firms.
◆ FANCL
After considering restructuring activity at large enterprises, FANCL established a“lifetime active service research institute” employment training company in February
2000 to primarily target middle-aged workers age 40 and older. Provides vocational
training for specialized skills in a variety of areas such as marketing or production
management, as well as guidance in basic activities such as speaking, handling businessdiscussions or creating a life plan. Rather than help workers to acquire new skills, thecompany develops each individual’s areas of expertise by drawing on his or her
accumulated abilities.
◆ TEMPSTAFF
Develops the computer skills of middle-aged workers who have a wealth of life
experience but have been laid off. After training them as information education
instructors, which are in high demand, places them in jobs in sites such as publicschools.
◆ Nihon Placement Center
For individuals who want to change jobs and have registered with the company, offers“Required Courses” that teach fundamental business skills and “Elective Courses”
that teach specialized skills in various occupations at its G-up Career Center, which
the company established in January 2000. The company invites businessmen who are
active in industry or consultants to be lecturers, and aims to provide practical businesstraining.
◆ Manpower Japan
Introduced its “Global Learning System” in March 2000, a free IT study systemutilizing the Internet. The company’s workers can use this system to engage in selfdirected study on topics including commercial transactions, building a network such
Development Bank of Japan Research Report/No.14 13

internal company controls, and safety management to avoid problems such as
information leaks.
◆ Federation of Japanese Technologists
A support group established by the Japan Technology Transfer Association, which
promotes the improvement and cross-fertilization of technology and knowledge basedon the transfer and exchange of manufacturing technology. This is an NPO formedby engineers to cross over the boundaries of their occupation for the purpose ofpromoting mobility among technical experts. Also conducts occupation training in
new technology when necessary.
Source: Information from newspapers and other sources

In the past in Japan, emphasis was placed primarily on the work of creating “things”(manufacturing). In addition to this, however, the work of creating “people” - that is, a personnel
business that aims for “cultivation of individual’s abilities” or “healing” and the training business- is also expected to grow in importance in the future. Because these fields have a very low upfront cost for investment in facilities and equipment and because it is also simple for new firms
to enter the business, differences in business quality can also easily emerge. Along with theincrease in needs or diversification, one important issue for the future will be how to ensure thatreemployment support and other personnel businesses develop in a healthy manner now thatthey have at last gotten underway.
2.4. Measures by the Public Sector
According to Japan’s Ministry of Labor, the development of employment skills should first andforemost be carried out within companies or through the initiative of private businesses, with the
public sector occupying a position that complements these activities. Individuals for which the
public sector ought to complement private activities are primarily unemployed individuals who
have no prospective employers, or individuals employed at small and medium-size firms thatcannot afford the cost in equipment or facilities needed for development of their workers’ skills.
The public occupation and manpower development facilities shown in Table 2-2 arecurrently open at more than 300 locations throughout Japan. As part of the upgrade of public
employment training that is being promoted through a three-year plan since Fiscal 1999, thePolytechnic Colleges under the jurisdiction of the Ministry of labor is being converted to auniversity. The plan calls for setting up a system consisting of Polytechnic University in 10
locations and a single Polytechnic College established by the national government (occupationaland manpower development organization) by the time the plan is completed. In addition to
specialized and practical courses, various short-term courses are also being prepared by theuniversities as a special framework for adult members of society.

14 Development Bank of Japan Research Report/No.14

Table 2-2. Types of Public Occupational and Manpower Development Facilities
Classification
Polytechnic University

Polytechnic Colleges

Polytechnic Center

Ability Garden

Advanced Polytechnic
Center

Polytechnic Junior Colleges

Human Resources
Development Centers for the
Disabled

Type of employment training
Provides high-level employment
training for high school graduates,etc. (Specialized courses)
Provides specialized as well as
applied employment training at ahigh level for individuals who havecompleted the specialized courses,
etc. (Applied courses)
Provides high-level employment
training for high school graduates,etc. (Specialized courses)

Conducts short-term employment
training for individuals who are notworking or are currently working
Development and implementation ofguideline and model employment
training courses for white collar
workers.
Conducts high-level high-techrelated employment training courses
for technicians with intermediateskills, etc.
Conducts employment training forjunior high and high school
graduates and individuals who are
not working or are currently
employed, etc.
Conducts employment training
appropriate for the abilities ofphysically and mentally challenged
individuals

Policy core
Employment and Human
Resources Development
Organization of Japan(As of April 2000)
Number of facilities
7

10
7

Employment and Human
Resources Development
Organization of Japan
Municipal and prefectural
governments
Employment and Human
Resources Development
Organization of Japan
Employment and Human
Resources Development
Organization of Japan

60

(1)

Employment and Human
Resources Development
Organization of Japan(1)

Municipal and prefectural
governments

214

Central government※
Municipal and prefectural
governments

13
6

Total

317

Note:

Numbers in parentheses ( ) are inclusive.
Management of facilities indicated by a ※ is conducted by the Japan Association for the Employment of the Disabledor municipal and prefectural governments.
Source: Ministry of Labor reference materials

What is commonly referred to in Japan as “polytech” are Polytechnic Center established by
the central government around the Occupational and Human Resources Development Centerand Polytechinc Junior Colleges established by municipal and prefectural governments. These are
the principal public facilities for providing vocational training. It is impossible to evaluate Japan’s“polytech” as a group. But overall, the former can be said to have maintained a specified level ofquality, while the latter depend upon the financial condition of local governments and differencesin training quality have arisen because some schools make an aggressive effort and others do not.
Course content is formed around science and technology classes (technology and skills), in order
Development Bank of Japan Research Report/No.14 15

to support the high level of technology and skill that have formed the source of Japan’s industrial
competitiveness. This reflects the decision that support in the form of facilities provided by thecentral or local governments to contribute to the manpower development of human resources inthese fields is indispensable. For the liberal arts, the first school as a polytech for white-collar
workers was established in July 1997, called the “Ability Garden” (Lifetime Occupation and
Human Resource Development Center). The model for courses aimed at middle-aged workers
who have lost or are changing jobs is to be active under the severe employment situation these
individuals face. It is difficult, however, to claim that these courses have fulfilled an adequate
function in the sense of complementing efforts in the private sector.
Future issues that are critical for Japan’s polytech are raising the overall level of the training
quality and strengthening liberal arts-related vocational training functions. For the latter inparticular, it is thought that “Ability Garden” will actively promote the “development of a skills
improvement model for employed white collar workers”, which was the initial intent whenestablishing the facility, as well can demonstrate efficiency by providing accumulated know-how
to private companies. When these kinds of public sector approaches are coupled with the actionsof private firms, it can be expected to contribute to the progress of Japan’s vocational training
functions.
3. Medium to Long-term Development-type Vocational Training
Situations such as those where middle-aged workers who are already unemployed decide to
improve their effectiveness and added value call for short-term supplemental-type vocational
training. In contrast, the awareness or necessity for workers to decide to improve their abilities
on their own prior to entering their middle years is expected to further increase the importance of
medium to long-term developmental-type vocational training in the future that can meet thisneed. The type of medium to long-term developmental-type training referred to here is not basedon emergency stop-gap thinking, but takes a medium to long-term perspective and aims at
improving added value in the very broadest sense. The fact that young workers are currently
taking advantage of this kind of vocational training function to improve their abilities is also
thought to be connected to the revitalization of middle-aged workers in the future labor market.
3.1. The Subject and Content of Vocational Training
Figure 2-3 is a simplified diagram of the core of traditional vocational training and the contents inJapan that also superimposes the circumstances in the U.S.

16 Development Bank of Japan Research Report/No.14

Figure 2-3. The Core of Traditional Vocational Training and Training Contents

AppliedU.S.
Graduate schools

Professional schools

U.S.
Community
colleges

OJT and company in-house training

Graduate schools and universities

Specialized

Public occupation andmanpower development
facilities and various kinds ofschools

Basic

GeneralTheory andresearch

Practical use

Source: Development Bank of Japan

Up to now in Japan, the focus of a university education has been on theories or research. At
the postgraduate education as well, the emphasis has basically been placed on the training ofresearchers or university professors. On the one hand, academically the training is at a very highlevel, and it is possible to systematically acquire a high level of specialized or applied knowledge.
On the other hand, however, universities generally are not involved very deeply in providing
practical skills or knowledge. As a nucleus to compensate for this situation there are various
Development Bank of Japan Research Report/No.14 17

schools that aim to provide, for example, computer training, foreign language capability or
acquisition of professional qualifications, in addition to the previously mentioned public
occupation and manpower development facilities. All of these generally have come to fulfill therole of providing either a general, basic education or training in a single skill. With regard to the
OJT or company in-house training that may be said to have always provided an effective
vocational training function nearest to actual practice, deficiencies have long been noted in the
training opportunities or contents. Moreover, given the severe business climate, both large
corporations as well as small and medium-sized firms are finding it increasing difficult to provide
such training because of the time and cost involved.
As a result, the function of providing education for applied, practical skills in specialized
fields - that is, the medium to long-term developmental-type vocational training function - isparticularly inadequate in Japan. This is shown in Figure 2-3 as the area shaded by diagonal lines.
Furthermore, because of changes such as scaled-down company in-house training, the tendency
to demand this function be fulfilled outside the firm will probably grow stronger in the future. In
the United States, professional schools such as business schools or community colleges withroots in their local area are fulfilling this function. Japan must investigate the future direction of
vocational training in Japan while continuing to make reference to these institutions.
3.2. University Reform Activities
At Japan’s universities and graduate schools, which have provided an education intended
primarily for new high school graduates that emphasizes theories or research, the first steps
towards steady reform aimed at throwing open the doors for adults can be seen if one looks at
the changes from the past. Viewed against the backdrop of a rise in vocational training needs, inrecent years in particular these activities have taken on a full-fledged character in a form that iseven calling for reviews of educational content.
One example of a system with the objective of opening college doors broadly to working
adults is the special framwork of entering examination which is set for adults separately fromgeneral one. The number of universities that have been implementing the system introduced in
Fiscal 1979 at the Rikkyo University Faculty of Law has been growing annually, reaching 93
colleges and universities in Fiscal 1989 and 333 colleges and universities (more than half of allcolleges and universities) in Fiscal 1999. For graduate schools the same system was first
introduced in Fiscal 1984 in the Osaka University Faculty of Economics Management Science
Program, and in Fiscal 1998 had been implemented at 240 graduate schools. As a result, asshown in Figure 2-4 the trend in the number of adults who entered universities and graduate
schools has also continued to increase through Fiscal 1998, and further growth in vocational
training needs can be expected.

18 Development Bank of Japan Research Report/No.14

Figure 2-4. Number of Working Adults Enrolled in Universities and Graduate Schools
14,000Individuals
12,447

12,00010,935
9,826

10,000
8,000

7,115

7,323

92

93

8,845

9,080

94

95

5,489

6,000
4,076
4,000

2,970

2,000
0
1989

90

91

Masters programs

Doctoral programs

96

97

98

Year

University special students

Source: Ministry of Education reference materials

In addition, because of the decline in the number of college students resulting from Japan’s
low birth rate and aging population, the sense of crisis over how university education has been
provided in the past, and the rising chorus of voices demanding the further steps be taken
towards university reforms, "A Vision for Universities in the 21st Century and Reform Measures"that took into consideration the University Council Report of October 1998 was included in theuniversity reform program amended in September 1999.
The principal points of the reform measures are summarized below.
〔Academic Faculties〕● Cultivation of abilities for students to pursue their own ends
・ Emphasize the importance of liberal education and secure cooperation between
liberal education and specialized education
・ Stress the importance of the basics and principles in specialized education
・ Cultivate students’ ability to play an active part on the international stage● Improvement of teaching methods
・ Specify the criteria for grading students’ performance and implement more rigorous
grading methods
・ Set an upper limit on the number of courses students may register for and provide
student guidance● Greater flexibility in the education system to cope with diverse learning demands
・ Increase the number of mutual transferred credits and authorize academic credits
for extracurricular study from educational facilities other than universities
Development Bank of Japan Research Report/No.14 19

● Promotion of cooperation and interaction with local communities and industry

・ Develop and implement educational programs through university-industry
cooperation
・ Offer diversified learning opportunities through more effective use of information
communication technology
・ Adopt and expand the internship system● Promotion of international exchange
・ Promote exchanges between educational programs and researchers〔Graduate schools〕● Upgrade organization and faculty composition
・ Specify by law a system that enables graduate schools to have the same basicorganization and faculty composition as undergraduate schools● Specification of goals and roles of graduate school programs
・Promote the establishment of graduate schools specializing in practical education, to
train professionals with advanced specialties● Greater flexibility in the education system to cope with diverse learning demands
・Establish one-year master's degree programs and longer-term programs that willcontribute to actively accepting adult students in master's programs● Promotion of cooperation and interaction with local communities and industry
・Develop and implement educational programs through university-industry
cooperation
・Offer diversified learning opportunities through more effective use of information
communication technology
・Greater promotion of research between graduate schools and private research
institutes based on the affiliated graduate school format or cooperative research● Promotion of international exchange
・Promote exchanges between educational programs and researchers

What must receive attention in these reforms in departments and graduate schools is thepoint that they look at not only the diversification of learning opportunities but also morepractical education through change in the educational content. This is especially true at graduate
schools, where programs such as sanction to establish evening graduate schools have been
prepared. Despite the fact that schools that meet the definition of a professional school in the
U.S. have been registered in Japan as well, their academic orientation is in fact still deeply
ingrained and there is still a vast difference in quality compared to the system in the United States.
Now that the creation of “specialized graduate schools” has been sanctioned, this may possibly
generate large future dividends, particularly in liberal arts-related courses where large differencesin quality are conspicuous. Universities and graduate schools hinting at this type of reform may
also be expected to play a central role in broadening vocational training function in Japan.

20 Development Bank of Japan Research Report/No.14

III.

The Current State of Vocational Training in the United States

1. Educational System and Vocational Training Subjects in the U.S.
Figure 3-1 illustrates the educational system in the United States.
In the United States, local school systems (school districts) have the strongest rights withregard to educational administration. Because districts have established various systems andcurricula independently, the educational system is greatly diversified, particularly at the primaryand secondary education levels, as the diagram clearly shows. Higher education as well shows
characteristics that at least until now have been absent in Japan. These include graduate schoolsthat are substantially divided between those where learning focuses on theory or research, much
like graduate schools in the past in Japan, and professional schools that provide practical courses
whose aim is the cultivation of individuals with a high level of specialization, as well as theexistence of community colleges with roots in their local community. Because these professional
schools and community colleges have taken over a central role in providing vocational training in
the U.S., they may be viewed as directly linked to the differences in the vocational training
function between the U.S. and Japan.
Figure 3-1. Educational System in the U.S.
Graduate schools(Including professional schools)

Two-year colleges(Community colleges, etc.)
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
Age
Source:4-year high schools

Middleschools

Universities (Departments)

Top-ranked
high schools

Lower-ranked
high schools

Top-ranked and lowerranked high schoolannexes

Highereducation

Primary
andsecondaryeducation

Elementary schools

Kindergartens
Nursery schools

Pre-school
education

the Development Bank of Japan from data from the National Center for Education Statistics
Development Bank of Japan Research Report/No.14 21

2. The Function of Professional Schools
The principal areas of study at professional schools include management science, law andmedicine. Business schools as well as other institutions are included under this designation.
Business schools are institutions that specifically focus their primary curriculum on
management, marketing or finance. Their aim is the acquisition of practical specialties andapplicable skills in management fields through instruction based on the practical experience ofthe majority of the professors themselves, as well as through case studies, group discussions orbusiness consulting. Although the doors of business schools cannot be said to be opened widely
because of the high level of academic ability demanded or tuition costs, in general they maketheir contribution as the nucleus of high-level vocational training. Particularly at the highest
ranked business schools shown in Table 3-1, the results from acquiring an MBA (Masters ofBusiness Administration) are very high. Although the number of students able to go throughsuch programs is restricted by cost or time, normally schools do not require students to have
majored in the subjects or have experience in the field they plan to study at the graduate school
as a condition to enter a program. It is perfectly acceptable if students have practical experience
for a number of years in an unrelated field. In addition there are also business schools that enable
students to take credits at night or through correspondence courses. Including these there aresaid to be approximately 900 business schools in the U.S. today.
Table 3-1. Top 10 U.S. Business School Ranking in Fiscal 1998
Average annual salary, first year after receiving MBA(US dollars)
1

University of Pennsylvania (Wharton)

125,500

2

Northwestern University (Kellogg)

125,000

3

University of Chicago

120,000

4

University of Michigan

110,640

5

Harvard University

145,000

6Columbia University

125,000

7Duke University

109,000

8

Cornell University

115,000

9

Stanford University

138,000

10

Dartmouth University (Tuck)

127,000

Sources: Business Week and other sources.

3.

The Function of Community Colleges

3.1. Historical Transformations and Current Conditions
Community colleges are an educational institution unique to the United States. Their history
dates back to the founding of the first private college in 1862. The first publicly founded
community college, Joliet Junior College, was not founded until nearly 40 years later in 1901, by
the president of the University of Chicago. Many of the private colleges that opened during thisfirst phase of their history, however, faced intense competition from the publicly founded
community colleges that received support from their state governments. Inevitably, both the

22 Development Bank of Japan Research Report/No.14

number of schools and the number of students declined during the 1860s and 1870s. Since thenpublicly founded community colleges have formed the bulk of community colleges.
Initially the function of publicly founded community colleges was positioned as “a place toprovide training in basic knowledge and thinking to high school graduates who wanted to go to afour-year university”. Specifically, California was the first state to approve providing a two-yearcollege education to high school graduates, in 1907. By 1917 a support system for these colleges
had been created by the state government or local government administrations, and in 1921
independent school districts (community college districts) were created, which paved the way forcloser cooperation with the communities where the colleges were located. With the California
state law as a model, during the next 25-year period community colleges rooted in local
communities were also established in states such as Texas, Mississippi, Missouri and Iowa, where
they fulfilled the function of preparing student to move on to four-year universities.
As America moved deeper into the Great Depression, however, the need to provide relief
measures for unemployed workers soon surfaced as a new and urgent local topic. During thisperiod, community colleges themselves were searching for some means to deepen their close
cooperation with their local communities, as a means to survive intense competition from otherinstitutions of higher learning. The community colleges’ function was thus enlarged to provide
vocational training for unemployed individuals in a manner that met the needs of all parties.
Since then, community college have changed and grown to meet the demands of the times andtheir local communities. Today’s community colleges have diversified their functions to include“preparation for transfer to a four-year university”, occupational training-related education suchas “vocational training for working adults, including unemployed workers” and “company
occupational training and business support”, and functions such as “offering lifelong learning
opportunities” to enhance the lives and broaden the interests of residents in the local community.
3.2. Characteristics
In the United States, the majority of two-year colleges are positioned as publicly founded
community colleges. In 1996 the number of community colleges totaled 1,113 schools (949publicly founded schools, 141 privately founded schools). In the fall of 1996 total student
enrollment was approximately 5.5 million students, with part-time students making up about 60%of the enrollment. As shown in Figure 3-2 the age make-up of the students was also
comparatively well diversified, especially among the part-time students, of whom approximately
20 percent were age 40 or older. When considered in terms of population, one can understand
how widely the community colleges in the U.S. have come to be utilized. In Japan, for example,
which has approximately half the population of the U.S., the total number of students at two-yearcolleges, vocational schools and various other kinds of schools in Fiscal 1998 was roughly 1.42
million.

Development Bank of Japan Research Report/No.14 23

Figure 3-2. Percentage of Students Enter a Community College in the U.S., by Age％ 100
90
Age 50 andolder
Age 40 - 49

80
70
60

Age 30 - 39

50
40

Age 20 - 2

30

Age 19 andyounger
Unknown

20
10
0
1991

1995
Part-time

91

95

91

Full-time

95

Year

Total

Sources: American Association of Community Colleges“National Profile of Community Colleges: Trends & Statistics 1997-1998”

The following characteristics are the most commonly shared among community colleges thathave come to fulfill a function as a vocational training organization with close ties to the local
community.
① No age or academic ability required as a condition for matriculation.
② The receive support, including financial assistance from their state government or local
administration, keeping tuition fees low.
③ They cooperate closely with industry and effectively grasp the unique needs of theircommunity.
It can be seen from these characteristics that community colleges have establishedthemselves as places where student can acquire a practical, useful education, as well as being
places that incidentally also fulfill a role as a “one-stop center” for the local community.
Certainly community colleges fill a role that is a world apart from that of professional
schools in aspects such as curriculum. In addition, depending upon the location some colleges aswell are burdened by problems such as tight state financing to support their administration or
school safety concerns as the student population diversifies. But by the fact that they provide
broad opportunities for a practical education while coping flexibly with the demands of the times,
as the source of local level education and above all else as the bearer of vocational training they
do in fact fulfill a critical function. Furthermore, as concern about a widening income differential
deepens, there is a strong likelihood that government policies proposed by President Clinton thatset great store on community colleges will be approved in the future. Expectations towards
community college training in industry as well, beginning with firms like Microsoft, are also
running high.
The United States has always had a society based on the premise that individuals must takepersonal responsibility for developing and honing their competitive abilities. A broad, adequate
mechanism that can help satisfy this premise is indispensable. This is the reason that various
educational bodies in the U.S. - including professional schools such as business schools and

24 Development Bank of Japan Research Report/No.14

community colleges - have clearly established positions and fulfill niche roles to build acomprehensive, diversified vocational training system.
3.3. Concrete Examples
In Illinois, the state where the first publicly founded community college in the U.S. wasestablished, there are currently nearly 50 community colleges with student enrollment in courses
for credit of approximately 680,000 students. In addition more than 250,000 people aremonitoring courses on a non-credit basis. A Community College Board composed of members
appointed by the state governor has jurisdiction for oversight of these colleges, and fulfilling roles
such as approving the programs offered by each college, researching common issues, andcoordinating the activities of all of the state’s local community colleges.
At this point we will introduce the specific program contents of such colleges by focusing on
College of DuPage in Illinois, which is the largest single campus community college in the UnitedStates.
◆ College of DuPage (COD)
COD is located approximately 50km to the west of Chicago, Illinois. Since being establishedin 1967 as a community college for Illinois School District #502, the school has given diplomas
to more than 500,000 graduates. While the programs and services offered by the college arediverse, COD has earned high marks from companies particularly for its contributions to the
local area through programs to increase occupations skills. Specifically, the college provides
courses ranging from an IT Training program, in which Microsoft bestows a qualification as a
Microsoft Certified Professional to all students completing the course, to training programs forpolice officers and firemen and women. The college has also established courses that makepractical use of on-line or two-way transmission networks. At the same time, these evaluations of
COD are reflected in the funding support received from the residents in the school district,private firms and the public sector, which allows the college to keep tuition and fees low. The
school organization consists of slightly fewer than 1,600 instructors (including counselors), with aratio of part-time to full-time instructors of about 5:1. In addition, approximately 800 individuals
are employed as staff.
Looking at the student body, the college had enrolled approximately 34,000 individuals as of
the fall of 1999, more than 70% of who were part-time. The student body is well diversified byboth age and experience. The average student age, for example is 33 and individuals age 40 andolder account for nearly 30% of the enrollment. Between 20 and 30 percent of new high school
graduates in the school district are matriculated at the college, and more than 20 percent of
COD’s students have already earned a bachelor’s degree or higher credentials. Many students also
have work experience. Individuals also have diverse objectives for entering the college, including“earning an associate degree required for admission to a four-year university”, “to receive
vocational training in order to get a better job”, and “pursue cultural enrichment after
retirement”. As a general trend, students are not overly concerned with earning credits but attend
for as long as they need to receive the necessary occupational education they desire.
The following illustrates the principal educational programs offered by COD.

Development Bank of Japan Research Report/No.14 25

● Transfer Programs
Programs for students who are thinking of entering a four-year university. Students canearn an associate degree in the humanities or natural sciences. Offers approximately 45
courses such as Accounting, Art, Botany, Business (Law), Computer Science,
Economics, Engineering (Tech), Journalism, Languages, Management/Marketing,Physical Education, Pre-Medicine, Pre-Nursing, Therapy, and Speech.
● Occupational/Vocational Programs
Programs for students who wish to improve or expand their occupational skills. Students
can earn an associate degree or Certificate of Completion in applied science fields.
Offers approximately 50 courses such as Accounting, Addictions Counseling, Certified
Nursing Assistant/Patient Care, Computer Information Systems, Digital andMicroprocessor Technology, Management, Marketing/Retailing, and Real Estate.
● Continuing Education
A so-called lifelong learning program based on part-time course work for young students
or older adults. In addition to programs such as computer training or foreign languages,
also offers self-development programs through summer camps, seminars and othervenues.
In addition to these programs, in 1979 COD established a Business and Professional Institute.
Formed around close cooperation with industry, the Institute offers occupational training
programs that are order-made for firms and industries, as well as provides business support.
Using individuals with both university degree and practical experience in specialized fields toprovide instruction as a foundation, the following types of programs are offered.
● Center for Corporate Training
Offers a variety of training programs in areas such as computer technology or businessskills.
・Computer Training
Computer training programs utilizing the latest compute software, with courses
designed for beginners as well as individuals who are thoroughly versed in computersand software.
・Manufacturing Extension Office
Provides support in fields such as management, marketing and product quality
improvement, for individuals working in small and medium-sized manufacturingfirms.
・Professional Development Training
An occupational manpower development program covering topics such as building ateam, problem solving, management innovation, and customer service.
・Technical Training
Technical training programs covering topics such as ISO, process management andhydraulics.
・Workplace Literacy Training
Offers personal improvement training programs such as English as a second
language, reading ability and mathematics.
26 Development Bank of Japan Research Report/No.14

● Center For Work Force Development
Offers support for firms facing identical kinds of problems, through seminars andresearch meetings. The Center has set up the International Trade Center, which offers
consulting services for companies planning to export their products, and the Small
Business Development Center, to support small and medium-size firms. The Center
receives back-up assistance from the Illinois State Department of Commerce and the
U.S. Small Business Administration.
● Center for Suburban Law Enforcement Academy
Offers training programs for new law enforcement officials.
● Illinois Manufacturing Engineering Research and Training Coalition
Organized by nine Illinois universities, five research organizations, seven manufacturing
development centers and groups such as the community college system, the coalition
works to create an environment in which individuals in small and medium-sized
manufacturing firms can easily receive technical support.

◆ Other community colleges
The U.S. Department of Labor and the American Association of Community Colleges created a
program to bestow Workforce Development Awards on community colleges for exemplary
practices and services in different fields that meet the demands of the times. The following
awards are cited as examples of award recipients in recent years.
Stark State College of Technology (Ohio)
Received the award in 1997 in the category “Dislocated Worker Services”. The college’s“Computer Numerical Control Machinist Technician Program” enables unemployedworkers to learn special technologies through 18 weeks (640 hours) of training aimed at
helping them find new employment. The college has achieved a job placement rate of
85% for individuals who complete the course.
City College of San Francisco (California)
Received the award in 1997 in the category “Company-oriented Occupational Training”.
In 1994 the college formed a partnership with the apparel industry and the U.S.
Department of Labor called GARMENT 2000, which supports improvements ininternational competitiveness of small and medium-sized firms in the apparel industry.
In 1996 more than 10,000 individuals participated in the program, which aims to
improve the skills of workers employed in various departments of the manufacturing
process.
Southeastern Community College (North Carolina)
Received the award in 1997 in the “One-Stop Career Center Services” category. The
college’s Job Link Career Center combines activity at all levels of the local community toprovide career-related information to employers and employees.

Development Bank of Japan Research Report/No.14 27

28 Development Bank of Japan Research Report/No.14

IV.One of the Future Directions for Vocational Training in Japan
1. Human Resources Training for Management-related Sectors
Based on the current situations in the U.S. and Japan, we would now like to consider one
direction for vocational training functions in Japan for management-related sector humanresource training, which are expected to grow in importance when providing for medium to longterm development-type functions for cultivating applied practical skills in specialized fields,
particularly as discussed in Section 3 of Chapter II.
According to the Survey of the Current State of Small and Medium Enterprise Start-up Activity fromJapan’s Small and Medium Enterprise Agency, the age at which individuals start companies inJapan has shown a rising trend. Since 1996, individuals in their 50s have accounted for the largest
percent at more than 30% of the total, as shown in Figure 4-1. When combined with the second
largest group, which is individuals in their 40s, the percentage rises to nearly 60%. Against a
backdrop that spans business management rationalization activities centered on large firms, thenumber of instances of middle-aged individuals who decide to apply the experience andconnections they’ve cultivated in opportunities to start their own companies for self-actualizationand to demonstrate their skills is expected to increase.
Figure 4-1. Ages at which Individuals Started a Company
13.0

1975-8445.0

1985-90

7.0

1991-93

5.0

1994-95

3.2

21.7

1996 and after

4.1

19.7

0%

27.0

32.0

34.0

27.0

10%

27.0

35.0

24.3

35.9

33.7

Age 29 and younger

30%

40%

50%

60%

30s

40s

Age 50 and older

8.7

13.2

26.0

25.4

20%

15.0

17.1

70%
50s

80%

90%

100%

Age 60 and older

Source: Small and Medium Enterprise Agency, Survey of the Current State of Small and Medium Enterprise Start-up Activity, December
1998 and other sources

But now take at look at Figure 4-2. Between 20% and 30% of the businesses surveyed cited“accumulation of management know-how” as an obstacle when starting a company. Moreover,although “raising capital” was given as the greatest obstacle, more than 40% of supporters such
Development Bank of Japan Research Report/No.14 29

as venture capitalists cited “uncertainty over management ability” as the reason for the decline in
the ratio of businesses opened, as shown Figure 4-3. Therefore the lack of management knowhow can be considered to also have an influence on an individual’s ability to raise capital as well.
Figure 4-2. Obstacles when Starting a Company
60

51.8

50

48.4

40

26.2

30

18.0

20

12.2

11.6

Researching and analyzing markets

70

％
69.5

Commercializing a product

80

5.4

10

Other

Technological development or
research and development

Accumulating management knowhow

Securing human resources

Raising capital

Developing customers

0

Note:
rcentages total more than 100% because respondents could give multiple answers.
Source: Small and Medium Enterprise Agency, Survey of the Current State of Small and Medium Enterprise Start-up Activity,
December 1998.

Figure 4-3. Reasons for the Decline in the Rate of Business Start-ups(From standpoint of parties such as venture capitalists who provide support)
％
70

65.1

60

5.4

5.9
Other

17.2

12.9

Does not have family understanding andsupportSalaryman-like attitudes are strong

Expenses need to start a business haveincreased

Competition has become increasingly
severeRisk to livelihood in the event of failure
is high

012.9

Restrictions on the business

10

A high-level of expertise is required

9.7

Difficult to start business because ofbusiness practices between private firms

17.7 19.4

20

To some extent the seeds for new
businesses do not exist

30

41.4

36.0

Uncertainty over management ability

42.5

40

Society does not place high value on
starting the business

50

Note:
Percentages total more than 100% because respondents could give multiple answers.
Source: Small and Medium Enterprise Agency, Survey of the Current State of Small and Medium Enterprise Start-up Activity,
other sources.

Figure 4-4 shows that in Japan in the latter half of the 1990s, as a trend the number of

30 Development Bank of Japan Research Report/No.14

individuals employed at firms with 500 or more employees peaked while the number ofindividuals employed at firms with less than 500 employees increased. In other words, the impactof small and medium-scale firms on Japan’s economy as a whole has grown stronger. Small andmedium-sized firms, however, are also characterized by a high business failure rate compared tolarge companies, and many observers suggest “immaturity of management know-how” as theprimary reason.
Figure 4-4. Change in the Number of Employees, by Level of Employees per Firm
Millions of persons
1,800

％

28.5
1-29 individuals

1,700

28.0

1,600

27.5

1,500

27.0

1,400

26.5

1,300

26.0

1,200

25.5

1,100
1990

91

92

93

94

95

96

97

30-499 individuals

500 or moreindividuals

Ratio of 500 or moreindividuals/Total(Right-hand scale)

25.0
98 Year

Source: Management and Coordination Agency, Labor Force Survey (1998)

Revitalization of new business start-up activity that crosses generational lines can be expectedin the future as the environment for new business start-ups gradually becomes more favorable.
According to the Management and Coordination Agency’s Employment Structure Basic Survey, thenumber of individuals who wanted to start a business in 1997 totaled approximately 1,240,000,
which has remained at a high level centered on individuals from their mid-20s to their mid-30s.
In existing firms as well, where full-fledged management reviews or rationalization is moving
ahead at large firms and the position of small and medium-sized firms as potential employers
increases, the demand for human resources with superior talent in various management areas is
anticipated to grow. Taking a lesson from these new tides, at the very least the demand for
applied, practical ability that can collectively handle fields organized around a specialized areas ofbusiness management such as accounting or marketing, will be in demand. It should be possible
to seize upon these areas as important fields for vocational training.
In addition to this, the importance of human resources training has been acknowledged evenin the IT sector, where so much attention has been focused in recent years. Together with theprogress in the application of IT to company management, in broad areas such as systems or
network development and protection or user support the shortage of IT-related technicians with
the needed expertise has become acute. In the human resources placement market as well, insome cases fees for the dispatch of IT-related technicians reach 4,000-5,000 yen per hour. In thisDevelopment Bank of Japan Research Report/No.14 31

situation, efforts aimed at cultivation of IT-related technicians are picking up steam. Jobplacement firms themselves have provided training for technicians in recent years, and theMinistry of Labor is hammering out policies to produce more human resources in the IT sector,
using institutions such as private technical schools and various other kinds of schools. Because
the speed of innovations in IT is also rapid, the importance of vocational training in this sector is
expected to grow even further in the future.
2. Specific Approaches at Universities and other Educational Institutions
Even in Japan, already several universities, either sensitive from the start to these kinds ofvocational training needs or else pushed by the tide of university innovation and reform, havebeen taking a constructive approach and coming to grips with practical education in areas such as
management. The Keio Business School, which established a graduate school for management
research in 1978, has been a pioneer in this effort, developing a program in collaboration with theHarvard Business School that puts emphasis on practical training using the case study method.
Table 4-1 provides a number of examples of graduate schools set up in recent years that focus onpractical training aimed mainly at working adults.
Table 4-1. “University” Efforts Aimed at Practical Training such as Management

Hitotsubashi
University

Hosei
University

Nihon
University- Began offering a lecture course on financial strategy in April 2000 as the first course in its specialized
graduate school.
- Enrollment limited to 40 individuals; as a general rule, applicants must have at least 2 years practicalexperience at a firm or government office to be admitted.
- Marketing its teacher teams, formed of individuals with first-line practical experience, and the curriculum.
- Plans to also begin lecture courses on international management strategy in October 2000.
- Enrollment of 20 Japanese and foreign students with employment experience.
- Large U.S. securities firms provide complete cooperation such as dispatching individuals for teachingpositions; all lectures are conducted in English.
- Opened a one-year graduate program (Masters) in April 2000 specialized in training for information
technology (IT) specialists with proven capability- Although program targets working adults and tuition is nearly ¥3.0 million, number of applicants well inexcess of the approximately 40 who are accepted.
- In addition to lecture by business individuals in the IT sector or venture business managers, also plansinternship at venture firms.
- Opened a global business major graduate program in September 1999.
- All students are working adults, with the average age above 40 (individuals from financial institutions,venture business managers, etc.).
- In January 2000, 31 students from the first class established a joint venture consulting firm for small andmedium-size businesses.
- Business received is converted to a data base and used as case study educational materials.

- Opened graduate school offering a management information studies major in April 1993 (Masters courses
only. Later also established doctoral level courses in April 1995).
Tama- All students are company employees participating on their own (mostly individuals at the manager andUniversity
section chief-level); classes and lectures are offered on Saturdays and weekday evenings.
- Most instructors have practical experience in companies or government offices, and are individuals withcareer experience related to their responsible positions.
Source: Created from newspaper information and other sources

In addition, the management academy that was given birth from the Productivity Center for
32 Development Bank of Japan Research Report/No.14

Socio-Economic Development was established in 1965 to provide high-level practical training inmanagement fields, centered on cooperation spanning the boundaries between academia andindustries and merits attention. This academy, positioned as the first substantial management
graduate school in Japan, has promoted the concept of “cultivation of experts to form the coreof business management” since its inception, and aims at practical, systematic education throughinstruction from professors representing academia and exchanges among participants fromdifferent business backgrounds. In addition to the fact that the range of participants is extremely
restricted because individual applicants are not accepted and firms select the majority ofparticipants from within their ranks, the academy is also faced with the decline in the number ofparticipating firms as Japan’s economy has deteriorated.
The background for many of these kinds of efforts geared at vocational training is a need forschools to set themselves apart or the size of the demand from private firms, especially in theTokyo metropolitan area. Besides these, however, there are also distinctive schools such as Otaru
University of Commerce, which offers a unique, thorough educational policy based on the strong
independent streak of its personnel, or Kochi University of Technology, which was establishedwith the clear objective of promoting new business formation and industrial training in its local
area.
◆ Otaru University of Commerce
The only national university of commerce in Japan was established in 1910 as the Otaru
Higher Commercial School. Utilizing the leadership of the school’s president and thefiercely independent nature of its management system, the school is thoroughly imbued
with a basic policy of “fostering top-ranking human resources through practical educationin small classes”. The faculties, graduate school and Center for Business Creation
continually fulfill their respective functions while serving diverse educational needs. In
1997 the university also established a satellite school in Sapporo with the objective of
implementing a full program of night courses for working adults in Sapporo, whereparticularly large demand is anticipated.
◆ Kochi University of Technology
Opened in April 1997 under the direction of the prefecture governor, with the goal ofregional promotion through engineering-related industrial training. With the prefecture’s
Alliance Center in the role of coordinator, business and academia cooperation isaggressively promoted and this three-way team is addressing training needs for local
industries. A graduate school (Engineering research program) was established in April
1999 and heavily influenced at that time by the university president’s wish to “promote
venture businesses by giving engineers the opportunity to acquire business start-up(management) know-how”. Through a combination of the faculties and directly
cooperating engineering-related courses, the university also established Japan’s firstformal “business start-up program”. Many of the professors and teaching staff havepractical management experience, and lectures are offered on Saturdays and Sundays forthe benefit of working adults. Many students are accepted into the business start-up
program, including individuals participating on their own and graduates of the arts. The
program manifests the size of vocational training needs in the management fields.

Development Bank of Japan Research Report/No.14 33

3. A Vocational Training System that Utilizes Universities as a “Place”
Until now, universities in Japan have placed their emphasis on theory or research, even at thegraduate school level. We must acknowledge the fact that they have to be viewed as having astandardized style. In contrast, the development of vocational training with a practical focus as
introduced in the previous section may be called epoch-making. With regard to new efforts inrecent years in particular, however, these are still just getting off the ground and their first level offull-scale operations and results are still being awaited.
In the future, moreover, the university efforts towards vocational training will preferably bebroadened from the high-grade graduate schools to levels that are closer to the individuals whoneed them. As with business schools in the U.S., vocational training at the graduate school level
has extremely effective aspects, but the number of people who can benefit is extremely limited
because of the level of ability demanded and high cost. In contrast, the social demand for afunction such as that performed by community colleges in the United States - which can provide
very broad vocational training opportunities without age or academic ability as entrance
requirements, while keeping tuition fees low and time restrictions minimal - is believed to be
substantial.
In Japan, however, an educational body that can be considered to fill the role of a community
college does not exist. While universities may also be said in some ways to be taking a new
approach, in general they are maintaining education that is centered on theory and research.
Radically altering this kind of existing university management policy in the short term willprobably be exceedingly difficult. Having said that, however, because of actual circumstances inwhich
z The environment (classrooms, etc.) is in place at universities for people to gather and receive
an education.
z Despite the difference between theory and practice, from a medium to long-term point ofview the concept of providing a systematic education is well grounded at universities.
z The winds of change are blowing for university reform, and at some universities (graduate
schools) the effort towards vocational training is already in full swing.
z The application of the precedent of business and academia cooperation in science andtechnology-related areas to the arts-related programs as well can cover deficiencies invocational training know-how.
z The backdrop of Japan’s declining birthrate and aging population gives universities
themselves an incentive to develop new activities.
When these are taken into consideration, making Japan’s universities the central axis when
considering vocational training may be most efficient. As a future direction, therefore, we believe
an effective vocational training system will involve universities as a “place” where the useful,accumulated know-how continues to be fully utilized. Any deficiencies in human resources orfunctions can be covered through cooperation with partners such as industry, private humanresource service firms or residents (NPO) (what might be called “collaboration between industry
and academia also including arts and sciences”). This concept is shown in Figure 4-5.

34 Development Bank of Japan Research Report/No.14

Figure 4-5. A Direction for the Future Vocational Training System
Private humanresource services
Training industry

Cooperation

Vocational
Training

Universities

Firms

Residents(NPO)

Individual

Cooperation

Industry

Capital support

Coordinator
Government and local
administrations
Source: The Development Bank of Japan

4. A Final Word - Support Being Asked of the Public Sector and Firms –As Japan considers the expansion of its vocational training functions, another indispensable
element is the broad support from the public sector and private firms that will be needed toprovide for the training environment.
First, the role of coordinator can best be served by local government administrations whencreating the business and university cooperation mentioned earlier, or building a vocational
training system based on this cooperation. Up until now business-academic cooperation has
primarily been promoted in science and engineering-related fields, such as business-university
collaboration on technology development or for research. In the future, this approach should bealso promoted in arts-related fields with an eye to realizing more practical training. Specificallythis should take a form where individuals from the industrial sector who have both practicalmanagement experience and teaching abilities are vigorously utilized at training locations, inreturn for which firms actively employ the individuals who are trained and already possess realcompetitive management skills. To secure these kinds of appropriate human resources or prepare
networks, the support of local government administrations is absolutely essential.
The government will be expected particularly to provide support for easing the financial
burden on individuals that is required for personal development. As a concrete policy measure,the “Education and Training Benefit System introduced by the Ministry of Labor in December
1998 with the objective of promoting employment stability and reemployment has attracted
attention and is already fulfilling a specified role as an incentive for personal development.
However, despite the fact that financial resources are provided by a employment insurance
system that has fallen on financial difficulties, some also point out that criterion for specifying
courses and students’ objectives are vague, and investigations will be required in order to increase
the effectiveness of support. Moreover, on the point of contributing to a reduction of theDevelopment Bank of Japan Research Report/No.14 35

training costs, both direct and indirect support aimed at expanding vocational training
opportunities for individuals - including efforts such as promotion of NPO that can form aneffective core for training programs - is desirable.
Support in the form of more appropriate recognition for and evaluation of personal
development for employees is vigorously required at firms. That is, when an employee wishes topursue self-development to improve his or her capabilities, firms must make the opportunity
available, at least in terms of time away from work, if the training will be tied to the firm’s
profitability from a multi-faceted and medium to long-term point of view. Moreover, when train
actually does result in an improvement to an employee’s skills that can contribute in some way tothe firm, that result should suitably be evaluated and reflected in the employee’s wages, andmechanisms that will act to increase employees’ training incentives should be created.
The efforts or support of various individuals such as those indicated above can be expected totrigger a desire for broadening of vocational training functions and improvement of individual
skills in Japan. This in turn can also be expected to be connected to the revitalization of middleaged workers in future labor markets.
[Kyoko Takahashi (Amano)]

36 Development Bank of Japan Research Report/No.14

References
American Association of Community Colleges. “National Profile of Community Colleges,” Trends
and Statistics 1997-1998.
The Association of Employment Development for Senior Citizens. Aging Society Statistical
Handbook 1999.
Development Bank of Japan, New York Representative Office. 1999. “U.S. Community
Colleges.” New York Topics 23 (November).
Drake Beam Morin Japan, Inc. 1998. Support Training Manual for Changing Jobs and Reemployment(May).
Go K. Implications learned from America’s Specialized Human Resources Training System, NLI ResearchInstitute.
Hirayama S. 1999. The Complete Manual for Middle-aged Workers’ Reemployment, Gakuyoshobo(October).
Japan Development Bank, Economic and Industrial Research Department. 1997. “Labor Big
Bang.” JDB Research Report 224 (March).
Japan Ministry of Education. 1994. Continuing Education: A Guide to Universities open to Working
Adults, Faculty Edition (January).
Japan Ministry of Education. 1999. International Comparison of Educational Index.
Japan Ministry of Health and Welfare. 1999. Health and Welfare White Paper.
Japan Ministry of Labor. 1999. Japan’s Labor Policies.
Japan Ministry of Labor. 1999. White Paper on Labour.
The Society for Higher Educational Studies. 1999. Aiming for Diversified University Development.
Small and Medium Enterprise Agency, Small and Medium Enterprise. 1999. White Paper.
Toyo Keizai, Inc. 1999. “Feature Article - Human Resource Job Placement is Changing.” The
Weekly Toyo Keizai (November), others.
Yasui M. 2000. University and Graduate School Guidebook for Working Adults 2000-2001, Diamond,
Inc. (March).
In addition to the resources cited above, a variety of other sources such as research conducted byinstitutions, web sites of ministries and universities, and newspaper information was used.

Development Bank of Japan Research Report/No.14 37

List of Back Numbers (Including JDB Research Report)
No.16

Revitalization of Middle-aged and Elderly Workers in Japan’s Labor Markets: Requiring the Expansion of
the Vocational Training Functions (This Issue)

No.15

Risk-Averting Portfolio Trends of Japanese Households, March 2001

No.14

Consumption Demand Trends and the Structure of Supply: Focus on Retail Industry Supply Behavior,
March 2001

No.13

Recent Trends in the Japanese Economy: Weakness of Current Economic Recovery and Its Background,
March 2001

No.12

Empirical Reassessment of Japanese Corporate Investment Behavior: Features and Changes since the 1980s,
Based on Micro-level Panel Data, March 2001

No.11

Survey on Planned Capital Spending for Fiscal Year 1999, 2000 and 2001, October 2000, October 2000

No.10

Job Creation and Job Destruction in Japan, 1978-1998: An Empirical Analysis Based on Enterprise Data,
September 2000

No.9

Recent Trends in the Japanese Economy: Information Technology and the Economy, September 2000

No.8

Trend of International Reorganization Affecting the Japanese Automobile and Auto Parts Industries, June
2000

No.7

Survey on Planned Capital Spending for Fiscal Years 1999 and 2000, May 2000

No.6

Current Status and Future Perspective of the Japanese Remediation Industry: Technology and Market for
Underground Remediation, May 2000

No.5

Recent Trends in the Japanese Economy: The 1990s in Retrospect, March 2000

No.4

Destabilized Consumption and the Post-bubble Consumer Environment, February 2000

No.3

The Slump in Plant and Equipment Investment in the 1990s: Focusing on Lowered Expectations, the Debt
Burden and Other Structural Factors, January 2000

No.2

Survey on Planned Capital Spending for Fiscal Years 1998, 1999 and 2000, November 1999

No.1

Corporate Strategies in Japan’s Semiconductor Industry: Implications of Development in Other AsianCountries, November 1999

JDB Research Report
No.96

Recent Trends in the Japanese Economy: Focused on Fixed Investment and Capital Stock, August 1999

No.95

Efforts to Protect the Natural Environment in the United States and Germany: Environmental Mitigation
and Biotope Conservation, July 1999

No.94

Survey on Planned Capital Spending for Fiscal Years 1998 and 1999, June 1999

No.93

Towards the realization of ‘environmental partnership’: A survey of Japan’s environmental NPO sector
through comparison with Germany, June 1999

No.92

The Impact of Demographic Changes on Consumption and Savings, March 1999

No.91

Recent Research and Development Trends in Japanese Enterprises: Technology Fusion, March 1999

No.90

Recent Trends in the Japanese Economy: Prolonged Balance Sheet Adjustment, January 1999

No.89

Impact of Asset Price Fluctuations on Household and Corporate Behavior: A Comparison between Japanand the U.S., December 1998

No.88

Survey on Planned Capital Spending for Fiscal Years 1997, 1998, and 1999, December 1998

No.87

Foreign Exchange Rate Fluctuations and Changes in the Input-Output Structure, November 1998

No.86

Structural Changes in Unemployment of Japan: An Approach from Labor Flow, November 1998

No.85

Recent Trends in the Japanese Economy: Characteristics of the Current Recession, August 1998

No.84

R&D Stock and Trade Structure in Japan, August 1998

No.83

Survey on Planned Capital Spending for Fiscal Years 1997 and 1998, August 1998

No.82

The Significance, Potential, and Problems of DNA Analysis Research: Establishing Public Acceptance isEssential, May 1998

No.81

The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996, 1997 and 1998
Conducted in August 1997, March 1998

No.80

Recent Trends in the Japanese Economy: Growth Base of the Japanese Economy, January 1998

No.79

Information Appliances: The Strength of Japanese Companies and Tasks for the Future, January 1998

No.78

Challenges and Outlook for the Japanese Machinery Industries: Impact of ISO14000 Series andEnvironmental Cost, January 1998

No.77

Current Conditions and Issues of Computerization in the Health Care Industry : For the Construction of a
Health Care Information Network, January 1998

No.76

Household Consumption and Saving in Japan, December 1997

No.75

The Direction of Japanese Distribution System Reforms: Strengthening the Infrastructure to Support
Diverse Consumer Choices, November 1997

No.74

Foreign Direct Investments by Japanese Manufacturing Industries and Their Effects on International Trade,
October 1997

No.73

The Impact of the Changing Trade Structure on the Japanese Economy: With Special Focus on the Effects
on Productivity and Employment, October 1997

No.72

An Analysis of Foreign Direct Investment and Foreign Affiliates in Japan, August 1997

No.71

Recent Trends in the Japanese Economy: Stock Replacement and New Demand as Aspects of Economic
Recovery, August 1997

No. 70 Corporate Fundraising : An International Comparison, June 1997
No. 69 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in February 1997, May 1997
No. 68 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in August 1996, August 1997
No. 67 An International Comparison of Corporate Investment Behavior: Empirical Analysis Using Firm Datefrom Japan, France and the US, April 1997
No. 66 Housing in the National Capital: Analysis of the Market for Housing using Micro Data, March 1997
No. 65 The Environment for Locating Business Operations in Major East Asian Cities, January 1997
No. 64 Direction of Reconstruction of Business Strategy in the Chemical Industry, January 1997
No. 63 Reflection on Discussions Concerning Regulation of the Electric Power Industry: Deregulation of theElectric Power Industry in Japan and Implication of Experiences in the United States, December 1996
No. 62 Current Status and Future Perspective of the Japanese Semiconductor Industry, November 1996
No. 61 A Breakthrough for the Japanese Software Industry?: Responsiveness to Users’ Needs is the key, October
1996

No. 60 Recent Trends in the Japanese Economy Focusing on the Characteristics and Sustainability of the Current
Economic Recovery, September 1996
No. 59 Analysis of the Primary Causes and Economic Effects of Information: Related investment in the UnitedStates and Trends in Japan, August 1996
No. 58 Selected Summaries of Research Reports: Published in FY 1995, June 1996
No. 57 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1995 and 1996
Conducted in February 1996, May 1996
No. 56 Recent Trends in the Japanese Economy, May 1996
No. 55 Issues Concerning the Competitiveness of the Japanese Steel Industry, February 1996
No. 54 Changes in the Financial Environment and the Real Economy, January 1996
No. 53 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994, 1995 and 1996
Conducted in August 1995, October 1995
No. 52 Current Economic Trends: Focusing on the Appreciation of the Yen and its Effects, October 1995
No. 51 Problems Concerning the International Competitiveness of the Petrochemical Industry, October 1995
No. 50 An Economic Approach to International Competitiveness, October 1995
No. 49 Selected Summaries of Research Reports Published in FY 1994, July 1995
No. 48 Strategies for Improving the Efficiency of the Japanese Physical Distribution System: Part2, July 1995
No. 47 Issues on International Competitive Strength of the Auto Industry, June 1995
No. 46 Problems Concerning the International Competitiveness of the Electronics and Electric Machinery
Industry, June 1995
No. 45 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994 and 1995
Conducted in March 1995, June 1995
No. 44 Strategies for Improving the Efficiency of the Japanese Physical Distribution System, March 1995
No. 43 Capital Spending Recovery Scenario Cycle and Structure, August 1994
No. 42 Progress of International Joint Development between Industrialized Countries on the Private Level, May
1994
No. 41 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993, 1994 and 1995
Conducted in August 1994 , November 1994
No. 40 Selected Summaries of Research Reports Published in FY 1993, June 1994
No. 39 Recent Trends in Japan’s Foreign Accounts, April 1994
No. 38 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993 and 1994
Conducted in March 1994, April 1994
No. 37 Economic Zones and East Asia Prospect for Economic Activity Oriented Market Integration, December
1993
No. 36 Japanese Corporate Responses to Global Environmental Issues, December 1993
No. 35 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992, 1993 and 1994
Conducted in August 1993, September 1993
No. 34 Structure of Profit to Capital in the Manufacturing Industry, September 1993
No. 33 Comparison of the Japanese and The U.S. Labor Markets, October 1992
No. 32 The Relative Competitiveness of U.S., German, and Japanese Manufacturing, March 1993

No. 31 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992 and 1993
Conducted in March 1993, April 1993
No. 30 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991, 1992 and 1993
Conducted in August 1992, December 1992
No. 29 Flow of Funds in the 80s and Future Corporate Finance in Japan, November 1992
No. 28 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991 and 1992
Conducted in February 1992, April 1992
No. 27 An Analysis of Foreign Direct Investment in Japan, March 1992
No. 26 Projection of Japan's Trade Surplus in 1995: Analysis of Japan's Trade Structure in the 80s, February 1992
No. 25 Intra-Industry Trade and Dynamic Development of The World Economy, November 1991
No. 24 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990, 1991 and 1992
Conducted in August 1991, September 1991
No. 23 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990 and 1991
Conducted in February 1991, March 1991
No. 22 Trends of the Petrochemical Industry and its Marketplace in East Asia, March 1991
No. 21 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989, 1990 and 1991
Conducted in August1990,September 1990
No. 20 Deepening Economic Linkages in The Pacific Basin Region: Trade, Foreign Direct Investment andTechnology, September 1990
No. 19 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989 and 1990
Conducted in February 1990, March 1990
No. 18 Petrochemicals In Japan, The US, and Korea an Assessment of Economic Efficiency, February 1990
No. 17 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1988, 1989 and 1990
Conducted in August 1989, October 1989
No. 16 Impact of the EC Unification on Japan’s Automobile and Electronics Industries, August 1989
No. 15 Industrial and Trade Structures and the International Competitiveness of Asia’s Newly Industrializing
Economies, August 1989
No. 14 The Japan Development Bank Reports on Capital Investment Spending: Survey for Fiscal Years 1988 and1989 Conducted in February 1989, March 1989
No. 13 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1987, 1988 and 1989
Conducted in August 1988, September 1988
No. 12 Growing Foreign Investors’ Activities and the Future of Internationalization, September 1988
No. 11 Futures Tasks and Prospects for the Japanese Machine-Tool Industry, July 1988
No. 10 International Division of Labor in the Machine Industries Among Japan, Asia’s NICs and ASEANCountries, June 1988
No. 9

Trends of the Petrochemical Industry and its Marketplace in East Asia around Japan, May 1988

No. 8

The International Competitiveness of Japan and U.S. in High Technology Industries, April 1988

No. 7

The Japan Development Bank Reports on Private Fixed Investment in Japan, March 1988

No. 6

Economic Projections of the Japan’s Economy to the Year 2000, February 1988

No. 5

The Japan Development Bank Reports on Private Fixed Investment in Japan, September 1987

No. 4

Current Trends in the Japanese Auto Parts Industry in Overseas Production, July 1987

No. 3Current Moves for Foreign Direct Investment into Japan, May 1987

No. 2

Overseas Direct Investments by Japanese Corporations, May 1987

No. 1

Current U.S. Consumption Trends, May 1987