Why Are Japanese Wages So Sluggish?

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Why Are Japanese Wages So Sluggish?

Author Info

Martin Sommer

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Martin Sommer

Abstract

Over 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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Publisher Info
Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/97.

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Length: 21 pages
Date of creation: 12 May 2009
Date of revision:
Handle: RePEc:imf:imfwpa:09/97

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This paper has been announced in the following NEP Reports:

NEP-ALL-2009-05-23 (All new papers)
NEP-LAB-2009-05-23 (Labour Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD, Directorate for Employment, Labour and Social Affairs. [Downloadable!]
Other versions:
- Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD, Economics Department. [Downloadable!]
Oliver J. Blanchard, 1997. "The Medium Run," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997-2), pages 89-158. [Downloadable!]
Robert C. Feenstra, 2007. "Globalization and Its Impact on Labour," Working Papers 44, The Vienna Institute for International Economic Studies, wiiw. [Downloadable!]

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This page was last updated on 2009-11-20.

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