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Will Wages Increase?

Concerns that Unreasonable Wage Hikes Will Impact Employment Unfavorably


During the latter half of the 1990s, the domestic economy deteriorated, and, because corporations restrained labor costs, wages (nominal total cash earnings) began to decline. As a result of the transition in the compensation system from setting wages by seniority to wages based on employee performance, it became more difficult to raise scheduled cash earnings, and, as a consequence, wages did not sufficiently reflect corporate profitability, and bonuses also declined.