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The Perils of Lifetime Employment Systems: Productivity Advance in the Indian and Japanese Textile Industries, 1920–1938

Published online by Cambridge University Press:  03 March 2009

Susan Wolcott
Susan Wolcott
Affiliation:
Assistant Professor at Temple University, Philadelphia, PA 19122.
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Abstract

In the interwar period, Japanese textile firms were able to greatly increase labor efficiency and become the world's main exporter of cotton textiles. Meanwhile, the Indian industry stagnated and was forced to retreat behind tariff walls. This paper argues that the flexibility of the Japanese work force stemmed from its high turnover; the Indian laborers were collectively inflexible in defending lifetime careers against technical changes that reduced labor demand. As the industry requires only a few easily acquired skills, a committed work force was actually a disadvantage to Indian management.

Type
Articles
Information
The Journal of Economic History , Volume 54 , Issue 2 , June 1994 , pp. 307 - 324
Copyright
Copyright © The Economic History Association 1994

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