Full Employment Growth in Japan and Taiwan

Abstract

The paper examines the phenomenon of full employment in Japan, the first country to reach such stage in postwar Asia, and of Taiwan which achieved it in the late 19605. lt looks into its manifestation, and how it was attained and sustained; and finally, how it affects macro growth rates, productivity, income distribution, demographic and other aspects. The trends examined apparently indicate that the top priority should be to develop agriculture in the early stages of modern economic growth in a monsoon economy. It is also predicted that unlike Japan and Taiwan, full employment in the coming decades will be much more difficult to attain and sustain due to the sluggish growth of the industrialized countries. Solutions are suggested which South and Southeast Asian countries can use to cope with labor surplus problems.