The Allocation of Added Value and Issues Confronting the Corporate Sector

Takeshi Hyuga

Introduction

One of the factors cited in the declining profit margins and other serious problems confrontingJapanese companies has been the persistently high cost of labor. In other words， the added value createdby production activity is being excessively allocated to workers at the expense of shareholders andothers. Under this argument， weak corporate earnings can be attributed to problems with the presentallocation of added value.

This paper examines what problems exist in the allocation of added value by making comparisons withthe past， and also considers the problems posed to corporate management.