There are notable differences in executive pays, sorting and training, and the same social efficiency between the United States and Japan. In America, (1) executives compensations are much higher than Japanese counterparts, (2) top executives are chosen from the internal or external candidates, while top executives are mainly promoted internally in Japan, as showed in labor mobility, (3) there is a lower level of firm-sponsored training than that in Japan. Although there are notable differences in top executives' management, the same economy achievements are acquired in both the United States and Japan. By model analysis, I have found manager general ability contribution and specific ability and managerial labor market affects top executive pays, sorting, training, firm profits and social efficiency. Just so, American manager compensations are much more than Japanese counterparts; compared to American companies, Japanese firms would more like choose a manger from inside and provide training to the manger. Because of many kinds of factors counteracting each other, there is no obvious difference in social efficiency between the United States and Japan.
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