This project focuses upon important differences in school to work transitions in Japan and United States. We empirically estimate a structural and dynamic model of education and occupation choice using data from the two countries. The estimated model can be used to assess the underlying factors responsible for limited mobility across occupations and employers of the Japanese youth. The analysis will shed light on the following key issues in the labor market: (1) to what extent the limited mobility of the Japanese youth reflect efficient initial job allocation and/or high cost of mobility, compared to the U.S., (2) What are the likely impacts of deregulation in the Japanese labor market on career mobility, especially the one on private placement services, (3) How best to adapt the school to work transition system to the New Economy?