Why are gender pay gaps so large in Japan and South Korea?

From the blog post:

Lifetime employment is the major, structural difference between East Asia’s tigers. During Japan’s economic miracle, company managers soothed labour unrest by rewarding both white collar and blue collar workers with career paths and job protection. This same system was adopted in Korea.

Given soaring productivity and double digit growth, large firms were confident in continued labour demand. Workers were hired, trained, then stayed till retirement. To maximise output, employees are expected to work extremely long hours, while also accepting re-assignment to new locations.

Commitment is rewarded by seniority pay - for years of service rather than productivity. Quid pro quo: work hard and you’ll be rewarded later. The wage premium for continued work in the same company is highest in Korea and Japan.

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Initially, some Japanese firms prohibited women from taking their entrance exams. From the mid-1980s, they experienced labour shortages, so increasingly incorporated women - but only as menial underlings.

Companies created distinct career paths. Men are on the career track (sōgōshoku); women are assigned the ‘dead-end clerical track’ (ippan shoku in Japanese). Destined to servitude, women are largely denied positions of responsibility. Personnel officers openly say that women are uncommitted or incapable.

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Disrespect and discrimination loom large. Japanese and Korean women often feel pressured to quit upon marriage. Korean and Japanese wives typically become non-regular workers, where their earnings are 40% lower and lack benefits (like company pensions).

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Lifetime employment generates a unique tension: employers want to heavily invest in workers’ skills, maximise working hours, while deterring exit. Seniority pay incentivises workers to stay, but promises of increments in twenty years time provide little solace to workers who are already exhausted.

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Male discontent generates a profound problem for corporations modelled on lifetime commitment, heavy investment and seniority pay. While shorter work hours would help, this has not occurred. East Asian firms have sought to maintain global competitiveness through ultra long hours.

Now you see how this all fits together. South Korean and Japanese corporations have placated disgruntled men by entrenching patriarchy. If women were treated as equals that would be polluting, it would undermine men’s self respect and work commitment. Why give your life to a company that treats you like a mere woman?

Company men’s egos continue to be pampered after hours. Japanese firms allocated 5% of their operating budgets to nights out with charming hostesses. Masculine pleasure is corporate strategy.

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Singapore, Hong Kong and Taiwan (‘SHKT’) never had these systems of seniority pay. Workers were simply rewarded with basic wages and productivity bonuses. SMEs didn’t heavily invest in their workers nor expect lifetime commitment. Firms did not need to secure unwavering loyalty. This systematic difference mediated their incorporation of women.

In the 1960s and 1970s, gender divisions of labour were broadly similar across East Asia. Women predominated in low paid work and exited upon marriage. Motherhood was central to their identities. By the 1980s, demand for skilled male labour was outpacing supply. Given high female education, low fertility and sky-high productivity, it became profitable to recruit and retain women. While SHKT firms were indubitably sexist, they didn’t face the same challenge of placating low-status men.

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The rise of respected, networked and wealthy women has increased their electoral competitiveness. Gender quotas were adopted in Taiwan after feminist lobbying. Women now comprise 42% of legislators. Once in power, Taiwanese women sponsor more bills and favour women’s interests. President Tsai Ing-wen was not only re-elected in 2020, but has also achieved a high approval rating (73%). She is the only female Asian head of state who is not from a political dynasty. Over in Singapore, the People’s Action Party introduced a quota to appeal to women voters. Since the 1990s, feminist coalitions have successfully overturned discriminatory laws. Attitudes are rapidly converging with Europe and North America.

(At first I thought this would make sense for ~life.women but it’s about both women and men, so ~life it is.)