IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Effects of Minimum Wages on Labor Markets and the Overall Economy: A bird's-eye view on Japanese and overseas research (Japanese)

  • TSURU Kotaro
Registered author(s):

    This paper surveys theoretical and empirical research on the effects of minimum wages in Japan and overseas and provides some implication for Japan's minimum wage policy. The debate over the minimum wage policy is often judged by its disemployment effect. In Japan, literature employing large panel data and focusing on those directly affected by minimum wages have unambiguously found the negative effects of minimum wages on employment. Policymakers need to bear a tradeoff in which some people receive higher wages while others suffer job losses. In addition, the impact on income distribution, working hours, profits, prices, and human capital as well as employment and evaluating their overall impact should be analyzed in a more comprehensive manner. Our policy recommendations are as follows. First, excessive burden on particular groups in the case of minimum wage increases must be avoided. One way is to introduce a lower level of minimum wage for teens as adopted in European countries. Second, increases in minimum wages, if any, should be moderate. Third, improved treatment of low-wage workers needs to be done via enhanced labor-management relations rather than by minimum wage increases. Finally, professional organizations such as the Low Pay Commission (LPC) in the United Kingdom that recommends minimum wage policies based on empirical evidence should be created.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.rieti.go.jp/jp/publications/dp/13j008.pdf
    Download Restriction: no

    Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 13008.

    as
    in new window

    Length: 33 pages
    Date of creation: Mar 2013
    Date of revision:
    Handle: RePEc:eti:rdpsjp:13008
    Contact details of provider: Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
    Phone: +81-3-3501-1363
    Fax: +81-3-3501-8577
    Web page: http://www.rieti.go.jp/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:13008. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.