[1] The advantage of the system is that it allows older employees to achieve a higher salary level before retirement and that it usually brings more experience to the executive ranks.
The disadvantage of the system is that it does not allow new talent to be merged with the experience, and those with specialized skills cannot be promoted to the already crowded executive ranks.
The labor turnover rate in Japan is less than half the United States level.
Japanese parliament seats are usually filled with the older members from each party.
After the economic bubble burst in Japan in the late 1980s and the venture capital (dot-com) shock of the 1990s, the seniority-wage system has become less popular amongst business, as they could not afford to keep older employees with high salaries on the payroll.