This report, one of a series of country studies on higher education and employment, particularly in continuing professional education, looks at recent developments in Japan. The first of five sections defines the scope of continuing professional education in the context of Japanese economy and society, and sets forth a theoretical framework for analyzing its structure. This covers modes of continuing education, and the Japanese model of employment and training. Section 2 summarizes various forms of employed college graduate training in business firms and government agencies which can be classified into initial training programs, mid-career training and self-development plans. Section 3 looks at the challenges to in-firm training: technological change, the shift in the role of college graduates in firms and the erosion of lifetime employment. Section 4 discusses recent changes in higher education institutions to facilitate continuing graduate education. A final section recaps the analysis of the Japanese system which continues to be based on the corporate model of in-firm, task specific training while economic and social changes are bringing change to this pattern. Appended are 7 tables of data and a 17-item bibliography. (JB)