Minimum Wages and Youth Employment in Japan: The impact of the 2007 revision of the Minimum Wage Law (Japanese)
In this paper, we empirically examine the impact of the large increase in regional minimum wages in Japan following the revision of the Minimum Wage Law in 2007. The estimation results show that while the minimum wage hike increased the lower level wages among teenagers, it also decreased their employment. Specifically, an increase in minimum wages by 10% is associated with a 5.25 percentage point decrease in the employment rate of 16-19 year-olds. Given that the average employment rate of this group during the observation period was around 17%, this represent a decrease in employment by around 30%, implying an employment elasticity of the minimum wage of approximately 3.
|Date of creation:||Mar 2013|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
Web page: http://www.rieti.go.jp/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:13009. 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.