Evaluation of lifetime employment system in Japan
Japan has traditionally had an employment system characterized by a "lifetime" employment relationship among employer and employee and salaries which are based on length of service with the employer-starting low, rising quickly after age 50, and featuring (in addition to a pension) a retirement bonus equal to 3 years of salary. One recent news article on this system stated, "From the perspective of individual incentives, responsibility and performance, it is inefficient and unfair; exceptional work is unrewarded." Use economic theory to comment on this quotation.