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


  • MORI Yuko


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.

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  • KAWAGUCHI Daiji & MORI Yuko, 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. repec:eee:labeco:v:47:y:2017:i:c:p:149-162 is not listed on IDEAS
    3. HARA Hiromi, 2015. "The Effects of Minimum Wages on Training," Discussion papers 15075, Research Institute of Economy, Trade and Industry (RIETI).
    4. 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.
    5. 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.
    6. 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.
    7. Abe, Yukiko, 2013. "Regional variations in labor force behavior of women in Japan," Japan and the World Economy, Elsevier, vol. 28(C), pages 112-124.
    8. repec:siu:wpaper:35-2012 is not listed on IDEAS

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