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First, they reduce the number of women and
temporary workers they employ. During the recession that followed the 1973 oil
shocks female employment dropped by eleven percent; more then five times the
drop in male employment. It was easy to reduce female employment because women
even if they hold permanent positions are thought of as transitory workers who
will leave the workforce when they get married. Female and temporary workers are
a safety valve for Japanese companies that allow them to reduce costs in the
short-term without firing permanent male workers. The second way Japanese
companies reduce costs is by giving early retirement to senior workers at the
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