The salient features of the Japanese labour market are explained in this volume, the key idea being integrated segmentation. Emphasis is on segmentation: on the demand side, within the educational system and, on the supply side, monitoring costs which underlie labour contracts. Using long-run official government statistical evidence, it is argued that what is peculiar to Japan is the integration of segmented labour markets. By virtue of segmentation the Japanese labour market is deeply competitive. By virtue of integration it is highly co-operative.