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Is Minimum Wage an Effective Anti-Poverty Policy in Japan?

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Listed:
  • Daiji KAWAGUCHI
  • Yuko MORI

Abstract

This paper considers whether minimum wage is a well-targeted anti-poverty policy by examining the backgrounds of minimum-wage workers, and whether raising the minimum wage reduces employment for unskilled workers. An examination of micro data from a large-scale government household survey, the Employment Structure Survey (Shugyo Kozo Kihon Chosa), reveals that about half of minimum-wage workers belong to households with annual incomes of more than 5 million yen as a non-head of household. A regression analysis indicates that an increase in the minimum wage moderately reduces the employment of male teenagers and middle-aged, married females, while it encourages the employment of high school age youth.

Suggested Citation

  • Daiji KAWAGUCHI & Yuko MORI, 2009. "Is Minimum Wage an Effective Anti-Poverty Policy in Japan?," Discussion papers 09032, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:09032
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    Cited by:

    1. Fumio Ohtake & M. Kohara & N. Okuyama & K. Yamada, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Japan," GINI Country Reports japan, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. Hiromi HARA, 2015. "The Effects of Minimum Wages on Training," Discussion papers 15075, Research Institute of Economy, Trade and Industry (RIETI).
    3. Kambayashi, Ryo & Kawaguchi, Daiji & Yamada, Ken, 2013. "Minimum wage in a deflationary economy: The Japanese experience, 1994–2003," Labour Economics, Elsevier, vol. 24(C), pages 264-276.
    4. Yuko MORI & Hiroko OKUDAIRA, 2025. "Higher Minimum Wage, Stagnant Income? The case of women's work hours in Japan," Discussion papers 25042, Research Institute of Economy, Trade and Industry (RIETI).
    5. Ryo Kambayashi & Daiji Kawaguchi & Ken Yamada, 2012. "Minimum Wage in a Deflationary Economy: The Japanese Experience, 1994–2003," Working Papers 35-2012, Singapore Management University, School of Economics.
    6. Hara, Hiromi, 2017. "Minimum wage effects on firm-provided and worker-initiated training," Labour Economics, Elsevier, vol. 47(C), pages 149-162.
    7. Abe, Yukiko, 2012. "A cohort analysis of male labor supply in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 23-43.
    8. Kawaguchi, Daiji & Mori, Yuko, 2016. "Why has wage inequality evolved so differently between Japan and the US? The role of the supply of college-educated workers," Economics of Education Review, Elsevier, vol. 52(C), pages 29-50.
    9. Masayuki MORIKAWA, 2019. "Minimum Wages and Productivity: Evidence from Japan," Policy Discussion Papers 19015, Research Institute of Economy, Trade and Industry (RIETI).
    10. Kawaguchi, Daiji & Mori, Yuko, 2021. "Estimating the effects of the minimum wage using the introduction of indexation," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 388-408.
    11. Abe, Yukiko, 2011. "Regional variations in labor force behavior of women in Japan," CEI Working Paper Series 2010-12, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    12. Yamagishi, Atsushi, 2021. "Minimum wages and housing rents: Theory and evidence," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    13. Kazuma SATO, 2021. "The Impact of the Minimum Wage Increase on Subjective Wellbeing: Evidence from Japan," Discussion papers 21075, Research Institute of Economy, Trade and Industry (RIETI).
    14. Taiyo Fukai & Keisuke Kawata & Mizuki Komura & Takahiro Toriyabe, 2025. "Gender gap in the desired wages: Evidence from large administrative data," Papers 2511.03252, arXiv.org.
    15. Okudaira, Hiroko & Takizawa, Miho & Yamanouchi, Kenta, 2019. "Minimum wage effects across heterogeneous markets," Labour Economics, Elsevier, vol. 59(C), pages 110-122.
    16. Hayato Kanayama & Sho Miyaji & Suguru Otani, 2025. "Who Bears the Cost? High-Frequency Evidence on Minimum Wage Effects and Amenity Pass-Through in Spot Labor Markets," Papers 2505.04555, arXiv.org, revised May 2025.

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