The relative labor price of Japanese workers has stagnated. This could be attributed to the increase in the number of part-time workers, decrease in human investment, as well as the potential of undermining the relations between workers' skills and firms' performance. We attempt to answer the following questions: (1) how the skill level and developing talents of employees, especially female workers, have changed, and, (2) how and why the relations between workers' skill and firm's performance have been undermined.
