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Foreign–native wage gap and tasks: Evidence from the Japanese labor market

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  • Doi, Yasuhiro
  • Suzuki, Kensuke

Abstract

This paper provides novel empirical evidence on the foreign–native wage gap in the Japanese labor market, examining the role of tasks. By leveraging government micro-level data and the Japanese version of O*NET, we construct task scores à la Acemoglu and Autor (2011) at a detailed occupational level. We then estimate the foreign–native wage gap in the spirit of Mincer (1974). Unconditionally, foreign workers earn 27% less than native workers; 82% of this gap is explained by observable characteristics. Tasks account for roughly one-third of the remaining unexplained gap, suggesting that foreign workers are assigned to lower-wage tasks, typically manual and routine tasks.

Suggested Citation

  • Doi, Yasuhiro & Suzuki, Kensuke, 2025. "Foreign–native wage gap and tasks: Evidence from the Japanese labor market," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525004082
    DOI: 10.1016/j.econlet.2025.112571
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    More about this item

    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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