I'm in Japan now and Japan is still like this. Actually, a lot of SE Asia is like this - Korea, HK. When I talk to people about this they even admit it. They realise they are goofing off a lot of the day because they know they have to stay late so there is little incentive to be productive.
I believe that people can only work productively for a set amount per day and keeping people at work after that doesn't lead to any more work being done.