Why Are Japanese Wages So Sluggish?
AbstractOver the past decade, productivity-adjusted wages have grown at a slower pace in Japan than in other rich countries. This paper suggests that Japan's dualities between regular and "nonregular" labor market contracts and the relatively inefficient services sector have exacerbated the negative impact of globalization and technical change on the labor income share felt in all advanced economies. Reforms aimed at increasing productivity in services and reducing gaps in employment protection and benefits between regular and nonregular workers could help put Japan's wages on an upward trajectory in the medium term.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 09/97.
Date of creation: 01 May 2009
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