Economic growth achieved in this way has affected the distribution of the profits of economic growth to households. Faced with intensifying global competition and greater exposure to the discipline of the capital market, firms have changed the way they distribute profits.
In an ever-changing competitive environment, they have been constraining increases in fixed costs and thus have continued to be cautious about increasing wages, particularly regular payments. Meanwhile, employees, having experienced a severe employment situation and currently facing intensifying global competition, have tended to prefer stable employment to a wage increase. Wage growth has therefore remained moderate despite the continuing high corporate profits.