Japan's labor market reforms aimed to boost flexibility and efficiency. The "Dispatch Law" of 1986 let firms hire temporary staff through agencies for adjusting their workforce easily. The 1997 revision of the Labor Standards Act created "white-collar exempt employees" for a performance-based wage strategy. Policies encouraged hiring non-regular workers, narrowing the wage gap. Japan also introduced the "Haken-shain" system for hiring on a contract basis for specialized projects, offering workers diverse industry experiences. Initiatives like the 2018 Work Style Reform tackled overtime and work-life balance issues through limits on overtime and flexible work options, aiming for a healthier work environment to attract and retain talent.
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