Merits and Demerits of the Regulation of the Recruitment System
－An Institutional Theory Approach－
The regulation of the recruitment system was abolished in 1997. Initiated at the beginning of 1953, this agreement signed between university groups and industry groups lasted for about 45 years. However, it did not function well from a historical point of view and was revised many times. At present, while industry groups have an ethics charter, university groups have an agreement, and both hold a position of mutual respect. In this paper, the regulation of the recruitment system is analyzed through institutional theory. Although there are several theories to institutional theory, the idea of “transaction cost theory” is considered the most suitable. After explaining the merits and demerits of the regulation of the recruitment system from the perspective of transaction cost theory, we provide some perspectives on how to improve the students' transition from the university to the labor market.